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Indian stock markets have braved the Covid-19 pandemic well so far especially after the devastating second wave of the pandemic. While Nifty 50 is at all time high and is almost at 16000 levels however the highlight of the last one year has been spectacular one year average returns from Small and Mid cap Mutual Fund category of about 100 percent.

While no body had expected this kind of returns in the midst of pandemic however investors who took the risk have been rewarded. But the burning question for all the existing investors is that will this performance continue next year? And for investors who are looking for fresh allocation into equities at these levels into the Small and mid cap category, is it right time to buy?

While most experts believe that the equity market outlook is positive however no one knows which Sub category will perform and hence at this juncture it might be interesting for investors to look at Flexi Cap mutual fund category.

The flexi-cap category does not have any fixed minimum allocation across market capitalization and it dynamically invests across time appropriate market caps with an aim to maximize returns. Flexi-cap fund managers can track when a particular market segment or stock has become unattractive, and change the allocation to an alternative market segment or stock that may perform well in times to come.

The best part of investing into a Flexi cap fund is that the investors don’t have to regularly churn or change the portfolio and let the fund manager dynamically change the allocation.

While there are a lot of flexi cap funds available in the market however there is a new fund getting launched by Nippon Life Asset Management Company that may be good option for investors who are looking at exposure into Flexi cap fund category, the fund is known as Nippon India Flexi Cap Fund.

Nippon India Flexi cap Fund is an open ended dynamic equity scheme. The fund will look at generating superior returns or alpha by bottom up stock picking approach while maintaining reasonable allocation to market leaders which means it will have opportunity to generate returns across the market caps, sector and industry without any restriction.

The scheme will be managed by Mr. Manish Gunwani, Mr. Dhrumil Shah and team who have rich experience of equity markets and are managing some of the flagship funds of the AMC. The fund opens up for subscription on 26^th of July`2021 and will close on 9<sup>th</sup> of August`2021 and will get opportunity to start with clean slate in this market.  

From a portfolio diversification perspective or fresh fund allocation a flexi cap fund from the stable of Nippon Life Asset Management Company is definitely worth considering

Mutual Fund investments are subject to market risks, read all scheme related documents carefully.