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What is a Flexi Cap Fund in India? Features & Benefits

What is a flexi cap fund? A flexi cap fund is a type of mutual fund known for its adaptability and flexibility. These funds offer a unique investment approach; unlike other funds that stick to fixed allocations, flexi cap funds provide fund managers the freedom to invest across various market capitalisation segments and enables fund managers to make dynamic investment decisions based on changing market conditions and opportunities. They have several benefits including dynamic investment strategy, diversification, and liquidity. However, they may have certain drawbacks including, tax implications, high-risk, and vulnerability to market fluctuations.

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