Understanding Flexi-Cap ETFs

Ratin Biswass / 01 Oct 2025/ Categories: DSIJ_Magazine_Web, DSIJMagazine_App, Letters to Editor, MF - Letter to Editor, Mutual Fund

I have been reading about mutual fund companies launching flexi-cap ETFs.

I have been reading about Mutual Fund companies launching flexi-cap ETFs. Could you explain what they are and whether they are suitable for investors? - Shital Thombre [EasyDNNnews:PaidContentStart]

Editor Responds : Flexi-cap ETFs are exchange-traded funds that invest across market capitalisations, including Large-Cap, Mid-Cap, and Small-Cap stocks, offering investors diversified exposure in a single product. Unlike traditional ETFs that track a specific index or sector, flexi-cap ETFs give fund managers the flexibility to allocate assets based on market conditions and potential opportunities. This approach allows investors to benefit from growth across the market spectrum while maintaining the liquidity and transparency of an ETF. Whether they are suitable depends on an investor’s risk appetite and investment horizon. For long-term investors seeking diversified equity exposure with professional management, flexi-cap ETFs can be an attractive option. However, like all equity investments, they are subject to market volatility and should be chosen carefully.

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