ICICI Flexi Cap Fund was launched on July 19, 2021. It works as an open-ended dynamic equity scheme investing across large cap, medium cap & small cap stocks, most suitable for investors who are seeking wealth in the long term. The minimum SIP amount for ICICI Flexi Cap Fund is ?1000, and investors can increase this in multiples of ?100.

Pros and Cons

How to invest

The ICICI flexi fund house has been positioned in a spectrum of risk and reward in between a large cap fund and a ‘large and mid cap’ fund. But the fund can move freely around in market cap. This is a reflection of the fund’s current strategy, with 50-100% of the investments in large caps and the rest in mid and small caps. So, an investor is advised to keep these factors in mind while investing in ICICI flexi fund.

What is the expense ratio?

The expense ratio can be defined as the yearly compensation that is paid to the company’s fund management team for fulfilling the obligation of managing the shareholder’s interests in that fund.

Funds with a less expense ratio are always preferred as it leads to higher returns to the investor on account of paying less to the fund managers.

Who should invest in ICICI flexi cap fund?

In the case of the ICICI flexi cap fund, if the fund manager learns that a particular market segment in which the investor had invested has turned redundant over time, then he can change the allocation to an alternate market segment that has been performing well at that time. Not only does market capitalization display the size of a specific company, but also many other characteristics such as growth potential, track record, and the risks inherent to the company. Thus, investors who are well-versed in market capitalization should invest in this fund.

For ICICI flexi cap fund, investors would need to use certain parameters for adjudging the suitability of their investment, like mid and small-cap valuations as a percentage of total Market Cap, relative strength index, and differential valuations of and the macro-economic indicators for both sector calls and market cap.

Benefits of ICICI flexi cap fund

• ICICI flexi-cap fund offers a diversified portfolio, due to which the fund balances the risk and return aspects adequately. The investor would not lose an excessive amount of money when the market goes down on him, while at the same time, the returns he receives will always be decent.
• ICICI Flexi Cap fund is also known to deliver steady returns even during times of a ‘bear market phase. This ensures that the income of the investor is not compromised and the money he has put into investment is safeguarded to some extent.
• The ICICI fund manager can choose to assess the allocation of ICICI flexi cap funds and switch between different firms and sectors depending on their market performance from time to time. This gives investors the twin benefits of not only investing in the best-performing and most profitable of stocks but also the option to easily exit from the ones he deems as unattractive.
• This fund has succeeded in earning nearly 11.2% more alpha than the prescribed benchmark of the NIFTY 500, seeing consistently higher returns in the later years. The fact that it has got one of the lowest expense ratios in the field certainly contributes to its capability.