Flexi caps for the win
For investors looking to blend styles, flexi cap funds are a natural starting point. With the freedom to invest across market capitalisations and sectors, fund managers in this category can express their investment philosophy clearly. Some flexi cap funds lean decisively towards growth, backing companies with strong earnings visibility and leadership potential. Others tilt towards value, focusing on reasonable valuations and a margin of safety. Holding funds with contrasting approaches can help smooth portfolio returns across market cycles.
Understanding a fund’s style requires digging deeper. The fund house’s overall philosophy can play a role here, as some consistently follow a defined approach, but individual fund managers can also stamp their signature on their portfolios.
Deepak Chhabria, chief executive officer and director of Axiom Financial Services, said, “Investors can gauge a fund’s investment style by reading the fund manager’s media interactions and closely tracking the portfolio to see whether the stated philosophy is actually reflected in stock selection,”
Investors should also be wary of ‘style drift’, especially when growth investing morphs into momentum chasing.
