In this edition of Mutual Fund Corner, Mrin Agarwal, a financial educator & director at Finsafe India, will delve into the discussion surrounding new funds recently introduced to the market. Agarwal aims to provide clarity on whether these funds warrant a place within our investment portfolios.

Discussing the flexi cap fund, Agarwal said the flexi cap category consistently holds its merit. Whether it enters the market as a New Fund Offering (NFO) or as an extension of an existing scheme is a distinct consideration.

It empowers fund managers with the freedom to execute their high-conviction concepts, unrestricted by market capitalisation constraints. This unburdened approach to diversification, in whichever direction the managers see fit, underscores the value of including flexi cap funds.

Read Here | Bajaj Finserv announces Flexi Cap Fund, NFO to be available between July 24-August 7

Reflecting on the multi-cap fund, Agarwal elaborates, "The core distinction emerges from the requirement imposed on multi-cap funds to allocate 25 percent across the three market capitalizations: largecap, midcap, and smallcap. In contrast, the flexi cap category is unburdened by such limitations."

She added opting for a multi-cap fund can be astute when faced with the challenge of allocating assets among the trio of large, mid, and small caps. This avenue ensures an equitable distribution of 25 percent within each of these segments."

Watch the accompanying video for more