We typically ask moderate investors looking to create wealth over a long period to invest in flexi cap mutual funds. These schemes invest across market capitalisations and sectors based on the outlook of the fund managers. They offer meaningful diversification and good returns over a long period of time. You can hope to get an average return of 10-12% over a long period. However, a word of caution. Stocks (and equity mutual funds that invest in stocks) do not offer predictable or stable returns. They may offer steady returns for a year or two, followed by excellent or abysmal returns in the next few years. For example, investors made great returns in the last two years. This year seems volatile. You should be mentally prepared for it. If you continue with your investments, you can hope to make great returns over a long period.
Here are our recommendations for the flexi cap category:
Best flexi cap funds
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