Tata Flexi cap fund – Direct-Growth NAV & Expense Ratio [Complete Details]

The Tata Flexi Cap Fund is a mutual fund launched by Tata in September 2018. The fund aims to generate long-term capital appreciation by investing in a diversified portfolio of large- and mid-cap stocks. The fund is managed by Sonam Udasi, who has over 23 years of experience managing equity portfolios & Abhinav Sharma, with 14 years of Experience. 

To date, the fund has generated returns of 12.5%, outperforming its benchmark index, the Nifty 500, by 2.5%. Investors looking for exposure to large- and mid-cap stocks may consider investing in the Tata Flexi Cap Fund.

Tata Flexi Cap Fund offers an online investing platform that allows investors to track their investments online. The fund is suitable for investors looking for both capital appreciation and stability in their investment portfolio. It is also ideal for those who want to invest systematically across different market cycles.

How does it work?

The fund follows a flexible investment approach and invests across market capitalizations, allowing it to change its asset allocation per market conditions. The fund has a track record of outperforming its benchmark and category peers over the long term.

The fund is suitable for investors with a high-risk appetite who are looking for long-term capital growth. Tata Mutual Fund is one of India’s largest asset management companies with over 25 years of Experience.

The company has a strong research team that uses fundamental and technical analysis to identify potential investment opportunities.

Objectives of Fund

The scheme aims to provide long-term capital appreciation by investing in a diversified portfolio of equity and equity-related instruments. The fund has a flexible investment strategy, and the portfolio is constructed to achieve the scheme’s objectives.

The fund manager will have the discretion to allocate the scheme’s assets between different asset classes and across market capitalization following the investment objective of the plan.

The scheme is suitable for investors seeking long-term capital appreciation from a diversified portfolio of equities and equity-related instruments across the market. Investors with a higher risk appetite may consider investing in this scheme.

How to get started with investing in a Tata Flexi Cap Fund?

The minimum investment amount for lump sum investments is Rs. 5000, and the minimum for a systematic investment plan (SIP) is Rs. 1000 per month. Investors can invest in the scheme through the following modes – lump sum, SIP, STP & SWP.

Tata Flexi Cap Fund is an open-ended scheme with no lock-in period. The project has a portfolio of large-cap, mid-cap & small-cap stocks, which makes it a diversified equity mutual fund.

The benefits of investing in a Tata Flexi Cap Fund

Tata Flexi Cap Fund is a fund that allows you to invest in a variety of equity instruments so you can spread your investment across different sectors, reducing your risk. The fund also offers the potential for high returns as it invests in rapidly growing companies.

Tata Flexi Cap Fund has a low expense ratio, which means that more of your money goes towards investments rather than fees. 

So if you want to invest in a scheme that allows you to move between debt and equity markets, then Tata Flexi Cap Fund is a good option.

The risks of investing in a Tata Flexi Cap Fund

Tata Flexi Cap Fund is a high-risk investment option, as it invests predominantly in equity and equity-related instruments. As per the fund’s scheme documents, as of December 31, 2020, at least 65% of its assets were invested in equity and equity-related instruments.

The higher percentage of assets in equities makes the fund riskier than other debt funds. The principal value of such high-risk investments can go up or down significantly depending on the stock market conditions.

For instance, in 2020, when the stock markets were volatile due to the Covid-19 pandemic, the Tata Flexi Cap Fund’s net asset value (NAV) fell by nearly 30%.

This fund has outperformed its benchmark indices over the long term, suggesting that it may be a good option for investors with a high-risk appetite. While this fund does offer potential rewards, investors should be aware of the risks involved before investing.

Which fund is best in Tata?

Tata is one of the most popular investment companies in India. It offers a wide range of mutual funds, each with its distinct investment objective. The Tata Equity Fund seeks to provide long-term capital appreciation by investing in a diversified portfolio of large- and mid-cap stocks.

On the other hand, the Tata Corporate Bond Fund aims to generate regular income by investing in a portfolio of high-quality corporate bonds.

Some funds focus on specific sectors, such as real estate or infrastructure. So, which fund is best for you? It all depends on your investment objectives and risk tolerance. For instance, an equity fund like the Tata Equity Fund may be a good option if you’re looking for long-term growth.

But a bond fund like the Tata Corporate Bond Fund may be better if you’re more interested in generating income. Ultimately, it’s essential to do your research and speak with a financial advisor to figure out which Tata mutual fund is right for you.

FAQ’s on Tata Flexi Cap Fund

Can I invest in the Tata Flexi Cap Fund through SIP?

Yes, you can invest in the fund through a systematic investment plan.

Is there a lock-in period for this fund?

No, the Tata Flexi Cap Fund is an open-ended scheme and does not have a lock-in period.

Can non-resident Indians invest in the Tata Flexi Cap Fund?

Yes, non-resident Indians can invest in the fund through the offshore route. They will need to provide documents such as a passport and proof of overseas residence for KYC purposes.

What is the fund’s expense ratio?

The fund has a low expense ratio of 1.98%, meaning that more of your money goes towards investments rather than fees.

Conclusion

The Tata Flexi Cap Fund offers investors the potential for high returns and diversification through a portfolio of large, mid, and small-cap stocks. The fund also has a low expense ratio, allowing more of your money to go towards investments. It is suitable for investors with a higher risk appetite seeking long-term capital growth. Non-resident Indians can also invest in the fund through the offshore route. Overall, the Tata Flexi Cap Fund is a good option for those looking to maximize their returns.