Gold Boosts Multi-Asset Funds, Flexi Caps Hold Steady

In the dynamic mutual fund landscape, multi-asset funds have gained momentum as gold prices surged, enhancing portfolio returns. Meanwhile, flexi-cap funds remain steady performers, maintaining a healthy 10–13% return band, supported by fund managers’ ability to shift allocations across large, mid, and small-cap equities.  

Key Highlights

• Gold’s impact: Multi-asset funds, which diversify across equities, debt, and commodities, benefited from gold’s upward trajectory, cushioning equity volatility.  
• Flexi-cap resilience: Flexi-cap funds continue to deliver stable returns, leveraging their freedom to adjust allocations across market caps.  
• Risk vs. reward: Multi-asset funds carry higher exposure to commodities, while flexi-cap funds offer lower volatility and better risk-adjusted returns.  
• Regulatory framework: SEBI mandates multi-cap funds to invest at least 25% in large, mid, and small caps, limiting flexibility compared to flexi-cap strategies.  
• Investor takeaway: Multi-asset funds shine in uncertain markets with commodity support, while flexi caps remain reliable for long-term equity growth.  

Sources: Financial Express, Business Today, PolicyBazaar