The newly-created category requires MFs to invest at least 65% of the corpus in equity without any restrictions on buying large, mid or smallcap stock.
The newly-created flexi-cap category — which requires mutual funds to invest at least 65 percent of the corpus in equity without any restrictions on going for large, mid or small-cap stock — registered a net inflow of Rs 35,877 crore in 2021-22. This was the highest net inflow among the equity categories, data from the Association of Mutual Funds in India (Amfi) showed.
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Since the creation of the flexi-cap category by capital markets regulator SEBI in November 2020, many asset management companies (AMCs) that had realigned their existing funds into the flexi-cap category have launched multi-cap funds, while those AMCs that had retained their funds in the multi-cap category have started flexi-cap funds, according to Morningstar India.
Of the Rs 35,877 crore, flexi-cap funds saw a net inflow of Rs 2,478 crore in the three months ended June 2021, Rs 18,258 crore for the quarter ended September 2021, Rs 6,191 crore for the quarter ended December 2021 and Rs 8,950 crore for three months ended March 2022.
While large-cap funds experienced a net inflow of Rs 13,569 crore for the entire 2021-22, inflow for mid-cap funds stood at Rs 16,308 crore and the same for small-cap funds was at Rs 10,145 crore. Apart from these, the multi-cap fund category witnessed a net inflow of Rs 28,095 crore and sectoral segment saw a net inflow of Rs 27,182 crore during the period under review.
On the AUM front, the flexi-cap category has amassed assets of Rs 2,25,430 crore at the end of March 2022 through new realignment of funds and new fund launches. "The flexi-cap category now has 17 percent of the overall assets of open-end equity funds," Morningstar India noted.
In the last quarter, it had managed to surpass the assets in the large-cap category and take the first spot in terms of highest assets under management (AUM), but in the quarter ended March 2022, its rank fell back to second.