The Economic Times

Multicap funds beat flexicaps on returns, but investors still favour flexicaps. Should you switch?

Multi-cap mutual funds have outperformed flexi-cap funds across short- and long-term horizons, but investors continue to favour flexi-cap schemes. Experts attribute the performance gap to multi-caps mandatory exposure to mid- and small-cap stocks, while flexi-caps offer greater flexibility and a relatively smoother risk profile. Should investors switch categories, or stick with their existing allocation?