First-time equity investors are increasingly turning to broad-based mutual funds and flexi-cap schemes for stable exposure. These funds provide diversified access across market capitalizations, reducing risk while capturing growth opportunities. Experts highlight their suitability for beginners seeking long-term wealth creation amid ongoing market volatility and evolving investment trends.
With rising market volatility, broad-based equity funds have emerged as the preferred entry point for new investors. Reports indicate that flexi-cap funds and index-linked schemes saw strong inflows in 2025, reflecting investor appetite for diversified exposure. These funds balance risk and reward by investing across large, mid, and small-cap companies, offering stability alongside growth potential.
Industry experts emphasize that such funds are particularly well-suited for beginners who may lack the expertise to select individual stocks. By relying on professional fund managers or index strategies, investors gain access to a wide market basket, ensuring reduced concentration risk.
Key Highlights
Flexi-cap funds recorded sharp growth in assets under management in 2025
Broad-based mutual funds accounted for majority of equity inflows amid volatility
Diversified exposure across large, mid, and small-cap stocks reduces risk
Professional management ensures disciplined allocation and long-term focus
Index-linked options provide low-cost entry for first-time investors
Impact And Reflection
The surge in broad-based fund investments signals a shift toward safer, more structured equity participation. For first-time investors, these funds offer a reliable path to build wealth while learning market dynamics without the burden of stock-picking.
Final Takeaway
Broad market funds and flexi-cap schemes stand out as the most practical choice for new equity investors seeking balanced exposure and sustainable growth.
Sources: Business Standard, Samco Securities, Motilal Oswal Mutual Fund