Fundexl: Greatest Mutual Fund And The Best SIP– wealth Guide

 

 Flexi Cap Fund: Never make this big mistake when investing in the stock market – learn the right way

Flexi Cap Funds and the Biggest Investment Mistake Explained

Only those investors who maintain flexibility in their investments to adapt to market movements can make significant profits in the stock market. Often, people invest in the same type of stocks and then panic and sell them when the market falls. This is the biggest mistake.


There is an important principle in investing –
He who bends according to the circumstances can survive even in the storm.
The same applies to investing. Investors often suffer losses due to stubborn thinking, fear, or buying or selling at the wrong time.

What is the most common mistake investors make?

Renowned investor Benjamin Graham said:

“An investor's worst enemy is himself.”

People investing in the stock market often make these mistakes-

Jumping into a stock/fund immediately after seeing the crowd

Invest in it only after looking at its past good returns.

Changing investments due to small news, fears or rumours

Selling early due to emotions

Investing all your money in one type of stock or sector

Just accept that “whatever is going on now, will continue to go on.

These mistakes result in lower returns for investors in the long run.

So what's the right approach? Why are flexi-cap funds better?

Flexi cap mutual funds are considered a good option for investors as they keep changing according to the market.
Fund managers invest in these three categories:
Large cap
mid Cap
small hat
That is, when large stocks are providing stability to the market, the allocation can be increased.
And when mid or small caps rise, the investment is diverted in that direction.
This flexibility provides several benefits to the investor.

Major Benefits of Flexi Cap Funds

Changes according to market conditions

Flexi cap funds keep changing their portfolio allocation.
This reduces the risk of getting stuck in one category at the wrong time.
Diversification means lower risk
With investments in all three categories:
fluctuations are less
The collapse of one segment does not bring down the entire portfolio.
Returns remain more stable
Better performance in the long run
Many flexi cap funds have given strong CAGR in 3 years, 5 years and YTD.
For example, in many funds:
Three-year CAGR of over 19%,
And it has had a CAGR of 17%+ since its inception.
This shows that with the right combination of management and flexibility, there is potential to generate good returns.

Who is Flexi Cap Fund suitable for?

This fund is a great option for investors who:

Unable to manage your own portfolio

Making the mistake of changing frequently

want diversification

Afraid of volatility but also want equity growth

Want the right asset allocation without trying it yourself?

 How does this fund work? 

Flexi Cap Fund changes its portfolio based on-
Domestic and international market conditions
Changes in interest rates
government policies
performance of companies
New market trends and investor sentiment


Past returns and valuation levels

The objective of this fund is to:

Providing investors with a seamless investment experience


Minimizing losses in volatility


Get the benefit of compound interest over a long period of time


Fund managers themselves monitor the market.
The investor does not need to keep track of time or make changes quickly.

Conclusion: Choice for Discerning Investors – Flexi Cap Funds

If you are also in the stock market-


Buying and selling at the wrong time


Look
 at the crowd and decide


troubled by fluctuations


and made mistakes again and again


Hence Flexi Cap Mutual Fund is the best option
For you.


These funds understand the market for you.
Adjust your portfolio
And will help in long term wealth creation.