Flexi Cap vs Multi Cap: कौन सा Fund आपके लिए Best है? | Best Mutual Fund | Sanjay Kathuria

Finance-focused summary: Flexi Cap vs Multi Cap (India mutual funds)

1) What the categories are (and how they differ)

Both Flexi Cap and Multi Cap are described as “Khichdi” (blended) equity categories that can invest across large-cap, mid-cap, and small-cap stocks listed on BSE and NSE.

Market-cap framework used in the video (approximate ranking ranges)

• Large cap: top 100 companies by market cap
• Mid cap: around 1001–250th (speaker’s numbering; “middle segment companies”)
• Small cap: around 251–500th (speaker’s framing: “lower end of top set”)
• The speaker also mentions micro caps beyond the top set.

2) SEBI timeline + allocation rules (key regulatory difference)

Multi Cap

• Introduced: Oct 6, 2017
• “Anywhere” allocation allowed across large/mid/small.

SEBI rule tightened

• Date: Sep 11, 2020
• Under the rule: if a Multi Cap fund invests ₹100, then:
  • ₹25 must go to large cap
  • ₹25 must go to mid cap
  • ₹25 must go to small cap
  • Remaining ₹25 is at fund manager discretion

Flexi Cap

• Introduced (as a response to losing flexibility): Nov 2020
• The speaker describes Flexi Cap as giving the fund manager more freedom (“autocracy” analogy) compared to Multi Cap’s rule-driven structure (“democracy” analogy).

Investment implication stated (speaker’s interpretation)

• Flexi Cap: “majorly focuses on large caps” for safety (speaker’s framing).
• Multi Cap: has compulsory mid/small exposure, implying higher volatility but potentially stronger long-term outcomes.

3) Performance comparison over ~5 years (category-level numbers)

The speaker cites 5-year average returns:

• Multi Cap: ~18% to 21%
• Flexi Cap: ~15.5% to 18%

Net takeaway (speaker’s framing): Multi Cap delivers roughly 2% to 3% higher annual returns than Flexi Cap over the period.

Risk/volatility note

• Multi Cap: described as higher volatility (because mid/small are mandatory).
• Flexi Cap: described as potentially less volatile due to a larger-cap tilt.

4) Who should choose which category (explicit suitability criteria)

Multi Cap may be better if you:

• Can tolerate volatility / “swings”
• Have an investment horizon of more than 5 years
• Want long-term wealth creation
• Are not afraid of maximum drawdown

Otherwise

If you don’t fit the above, the speaker suggests considering Flexi Cap.

5) Step-by-step mutual fund selection framework (Multi Cap example)

The speaker outlines a process to choose a Multi Cap fund within the category, using a screener.

Tools mentioned

• Ticket Tape (screener)
• Ticket Pro (needed for “pro filters”)

Filters and elimination steps (as described)

1. Select category = Multi Cap
   • From ~1800 funds → narrowed to 32 Multi Cap funds
2. Expense ratio filter (de-emphasized)
   • Expense ratio is not treated as the first priority.
   • A ~3.4% figure is mentioned as a “high” reference (contextualized by the speaker).
3. Alpha / benchmark beating
   • Check if the fund beats its benchmark, with examples shown such as:
     • Nifty 500
     • Nifty Multicap 50
4. Rolling returns consistency
   • Use 3-year average rolling returns to avoid one-off performance
   • Requires Ticket Pro
5. Risk checks
   • Volatility: lower is better
   • Maximum drawdown: lower is better
   • Requires Ticket Pro
6. Relative performance within category
   • Use a “ratio” filter: fund performance vs category average (higher is better)
7. Elimination rules
   • Remove funds with life < 3 years
   • Remaining: 32 → 20
   • Sort by rolling returns and keep only the top 10 or 7 → remaining becomes 7 funds
8. Final selection on combined risk-return criteria
   • Pick the one with: 1) lowest maximum drawdown 2) then lowest volatility 3) then best returns vs sub-category/category average
   • Speaker’s outcome after comparing: Axis Multicap Fund (vs HSBC and others)

6) Explicit fund examples + key numbers (Axis Multi Cap selected)

Risk metrics cited during narrowing

Example maximum drawdown values:

• Kotak Multicap: ~21%
• Axis Multicap: ~18%
• Nippon India Multicap: ~43%

Volatility note:

• Nippon India Multicap is said to have the lowest volatility number, but its maximum drawdown is high, so it gets eliminated.

Relative returns vs category average (multiples cited)

• Kotak Multicap: ~1.4x better
• Two funds at ~1.5x are mentioned; Axis and HSBC are later indicated as staying in contention.

Final risk-return reasoning (speaker’s conclusion)

• Axis: higher returns than HSBC
• Axis: comparatively lower risk / lower volatility
• HSBC: higher maximum drawdown than Axis Conclusion: Axis Multicap Fund chosen.

---

Axis Multi Cap Fund details (as stated)

Expense ratio and allocations

• Expense ratio: 1.13% (vs category average 1.57%)
• Equity allocation: ~95% in equities
• Cash/for liquidity: ~5% (fresh investment planning implied)

Sector allocation (highlighted)

• Highest allocation: private banks
• Then mentions auto parts and specialized finance

Top holdings mentioned (examples)

• HDFC (speaker says it is highest among major holdings)
• ICICI Bank
• Shri Ram Finance

Fund manager profiles cited

• Shreyas Dewalkar (managing money worth ~₹1.5 lakh crore mentioned)
• Nitin Arora
• Hitesh Das

Fact sheet reference (June 2026) + allocation percentages

• Fund launch year: 2021
• Benchmark: Nifty 500 Multicap 50 25 TRI
• Cap allocation cited:
  • Large cap: 41%
  • Mid cap: 25.6%
  • Small cap: ~29%
  • Cash/others: 4.09%
• Interpretation given by speaker:
  • References the “25-25-25 ratio” concept from Multi Cap SEBI structure, but notes the manager currently invests more in large cap.

7) Disclosures / sponsorship-like notes

• The speaker promotes Ticket Pro:
  • cost about ₹2500/year
  • promo code: “Sanjay45”
  • discount for first 1000 users
• The video content provides guidance on selecting mutual funds.
• No explicit “not financial advice” disclaimer is mentioned in the provided subtitles (per the summary).

---

Indices / instruments / benchmarks mentioned

Indices / benchmarks

• Nifty 500
• Nifty Multicap 50
• Nifty 500 Multicap 50 25 TRI

Company/entities mentioned (not complete NSE/BSE ticker formats)

• Reliance Industries
• HDFC
• ICICI Bank
• Shri Ram Finance

Mutual fund names mentioned

• Axis Multicap Fund
• Kotak Multicap
• Nippon India Multicap
• HSBC Multicap (as a comparison)

Key presenters / sources mentioned

• Presenter/Source: Sanjay Kathuria (speaker throughout; ends with “Sanjay Kathuria signing off”)
• Regulator referenced: SEBI (category definitions and rules dated Oct 6, 2017, Sep 11, 2020, Nov 2020)
• Screening tool source: Ticket Tape / Ticket Pro (used for the fund selection process)