Mutual funds are considered safer than individual stocks, as they provide diversification by pooling money from several investors and investing in a range of securities. They invest in anywhere between 20 to 90 stocks or more. This diversification helps reduce the risk associated with investing in single stocks. However, the safety of a mutual fund
ETFs (Exchange Traded Funds) and mutual funds both help in long-term wealth creation, but they serve different investor needs. ETFs are passively managed, often tracking an index, and usually come with lower expense ratios. However, they require a Demat account and are bought/sold like stocks.Mutual funds are professionally managed and more suitable for hands-off investors,
Flexicap funds offer diversification with flexibility. Unlike large-cap, mid-cap, or small-cap funds that stick to one market segment, flexicap funds allow the fund manager to invest across all three. This helps reduce risk during market volatility and improves the chances of capturing gains from different segments.They are ideal for investors seeking a blend of stability,
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
