NJ Flexi Cap Fund, an offering from NJ Mutual Fund, is available for subscription till August 29. This new fund offer (NFO) is an open-ended equity scheme that will invest across large cap, mid cap and small cap stocks. The investment objective of the scheme is to generate long term capital appreciation by investing in equity and equity related instruments across market capitalizations.

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Investment amount

Investors can participate in this scheme with a minimum investment of Rs 500 per plan/option and in multiples of Re 1, with no upper limit imposed, the fund house said.

Benchmark

By adopting the NIFTY 500 TRI as the benchmark, the fund's performance can be evaluated against an index that aligns with its investment strategy.

Entry/exit loads

One crucial aspect of any investment decision is understanding the associated costs and fees. In the case of NJ Flexi Cap Fund, there are no entry loads, meaning investors are not burdened with additional charges upon investing. However, the exit load structure is as follows:

Nil exit load for 5 percent of the units up to completion of 30 days

1 percent exit load if units are redeemed/switched out within 30 days from the date of allotment

Nil exit load if redeemed after 30 days from the date of allotment.

Fund manager

Dhaval Patel, a seasoned investment professional, will oversee the management of the NJ Flexi Cap Fund.

Asset allocation

Under normal circumstances, the asset allocation of the scheme will be as follows:

Should one invest?

Flexi-cap funds invest a minimum of 65 percent of their assets in equity and equity-related instruments. They are free to take exposure to large-cap, mid-cap, and small-cap stocks without any restrictions as they invest across market capitalisation. This underlying nature makes them a decent investment fund, experts say.

According to Archit Gupta, CEO at Clear, these funds have a higher exposure to large-cap companies as they are well-established and offer a higher risk-adjusted return. It gives stability to the portfolio than mid-caps and small-caps, which tend to crash in a declining stock market.

However, in case of NJ Flexi Cap Fund, investors should note that it does carry a "Very High Risk" classification, as indicated in the scheme information document. While the potential for significant returns exists, investors must be prepared to acknowledge the heightened risk associated with this investment, experts say.

Here's a look at 1, 3 and 5 years returns of some of the flexi cap funds:

(Source: Moneycontrol)

First Published:Aug 16, 2023 4:50 PM IST