What is the difference between Multicap and Flexicap funds

Multicap funds invest across large, mid, and small-cap stocks, but they must follow a minimum fixed allocation across these segments, as per SEBI rules. Flexicap funds also invest across all market caps—large, mid, and small—based on market conditions and opportunities. Unlike Multicap funds, flexicaps aren’t restricted by allocation limits. This gives fund managers the flexibility to shift between segments to optimize returns and manage risk.