The All-in-One Equity Fund
Top companies keep on changing
Top 5 companies by Market-cap in the Nifty 50 index. The top companies of today are very different from the top companies, even a few years back.
| June 2002 | June 2012 | June 2022 |
|---|---|---|
| Hindustan Unilever | TCS | Reliance |
| Reliance Industries | ONGC | TCS |
| Infosys | Reliance | HDFC Bank |
| ITC | Coal India | Infosys |
| SBI | ITC | HUL |
Source: www.nseindices.com. The name of the companies is for illustration purposes only and not a recommendation for investment.
Just like the seasons, equity markets too keep changing and need us to adapt. Flexi-cap category of Mutual Funds helps us to do just that.
What is Flexi-cap Mutual Fund?
Flexi-cap Funds invest in companies across market caps viz. Large Cap, Mid Cap and Small Cap. The fund managers have the ability to dynamically allocate the portfolio depending on the prevailing market conditions, valuations, future growth prospects, etc.
Benefits of Investing in Flexi-cap Fund
Agility:
No market cap limits allow the Flexi cap fund at any given time to dynamically take positions across large/ mid or small cap stocks
Diversification:
One equity fund that invests in different market segments. Large caps tend to reduce volatility whereas mid and small caps may come with higher growth potential
Managing Risks:
A diversified portfolio helps in reducing risks solely associated with investing solely with large / mid and small caps and hence it is a good starting point for someone who is new to investing
All Seasons Fund:
Given the dynamic nature of the fund, it may adapt and thrive in different market cycles
Who Should Invest in Flexi-cap funds?
New Investors:
New investors looking for exposure across market caps through one fund
Long Term Wealth Creation:
An all-seasons fund which seems to easily adapt to different market cycles, making it a good option for long term wealth creation
Investors looking for diversification:
This fund takes exposure to large, mid and small caps thereby diversifying exposure and reducing individual risks
Investors looking for core equity portfolio:
The diversified portfolio with flexibility to evolve according to business, market and economic views. May be used as a core equity portfolio for investments.
BARODA BNP PARIBAS FLEXI-CAP FUND NFO Opens from 25th July to 5th August 2022.
Mutual Fund Investments are subject to market risks, read all scheme related documents carefully. The information provided is generic in nature and is for informational purpose only. Please consult your financial advisor before taking any decision.
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The contents of this article/infographic/picture/video are meant solely for information purposes and do not necessarily reflect the views of Bank of Baroda. The contents are generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. Bank of Baroda and/ or its Affiliates and its subsidiaries make no representation as to the accuracy; completeness or reliability of any information contained herein or otherwise provided and hereby disclaim any liability with regard to the same. The information is subject to updation, completion, revision, verification and amendment and the same may change materially. The information is not intended for distribution or use by any person in any jurisdiction where such distribution or use would be contrary to law or regulation or would subject Bank of Baroda or its affiliates to any licensing or registration requirements. Bank of Baroda shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information mentioned. Please consult your financial advisor before making any financial decision.
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