With markets swinging in 2025, investors are wondering: where to put their money? Between index funds, flexi-caps, and multi-caps, each option has its strengths and risks. Find out which one best fits your portfolio with this detailed guide.
Index Funds: Low Cost Stability
Index funds track indices like the Sensex or Nifty 50, with low costs and a return of 9% per year over the last three years. With a maximum loss of 8.3% on downsides, they are an ideal choice for beginners or those who want to avoid surprises.
Flexi-Cap: Freedom of Choice
Flexi-cap funds, with a 12% annual return, offer managers the ability to invest in companies of all sizes. They are perfect for those seeking a mix of growth and adaptability, although success depends on the skill of the manager.
Multi-Cap: Risk and Opportunity
With an impressive 15% per year, multi-caps diversify between large, mid and small-caps, but volatility is high (15.5% drop in bad times). They are great for those with a long horizon and who tolerate swings.
Which Fund Is Right for You?
- Safety objective: Index funds.
- Balance: Flexi-cap.
- Maximum returns: Multi-cap.In the current context, index funds shine for stability, while multi-caps attract those betting on undervalued mid and small-caps.
Conclusion
There is no one-size-fits-all answer: the right fund depends on your risk profile and plans. Use financial analysis tools to dig deeper and start building your future today!
