With the increasing interest of people in the stock market, the number of investors investing money in mutual funds is also continuously increasing. Mutual funds provide a simple solution to investors who are not able to study the stock market movements in depth, but want to take advantage of high market returns. At present, there are many types of mutual funds available in the market, which are for investors with different needs.
Difference between the two mutual funds
Among the investors. Both flexi cap funds and balance advantage funds are counted among the popular mutual funds. Today we know about these two mutual funds, what are their advantages and disadvantages? Which type of investors should invest in these? What are the similarities and differences between these two mutual funds?
These are called flexi funds
Be it flexi cap mutual fund or balance advantage fund, both these mutual funds offer the benefits of a diverse portfolio. Are preferred for. Flexi cap funds are those mutual funds which invest in shares of all types of market caps. In the portfolio of a flexi cap mutual fund, you will get all three types of shares, large cap, mid cap and small cap.
Such funds are more diverse
Some limitations of flexi cap mutual funds. are also. The biggest limitation of such mutual funds is that they invest only in equities. This means that such mutual funds give you the benefit of a diverse portfolio within the scope of equity only. Whereas the scope of Balance Advantage Fund is wider. Balance Advantage Fund has both equity and debt instruments.
Which is better for you?
Now we have discussed about both types of mutual funds, Flexi Cap Mutual Fund and Balance Advantage Fund. I understood. And also came to know what is the basic difference between the two. After this, the most important question arises that which of the two is the better option for an investor? In response to this, experts say that both the funds are right in their own way. Which one is better for you depends on what your particular needs are.
Choose based on risk and return
If you want to take less risk and If you like to keep your money safe, then Balance Advantage Fund is a better option for you. These funds are less affected by sudden fluctuations in the market. However, the returns in these are also relatively low. Whereas with flexi funds the risk is higher, but there are also possibilities of getting bigger returns. In short, flexi funds are a better option for risk-loving investors, while balance advantage funds are better for investors who prefer investment security.
Also read: < a title="Investors earned Rs 6.5 lakh by investing Rs 10,000 each, this share did wonders." href="https://www.abplive.com/business/best-multibagger-stock-to-buy-shares-of-deepak-nitrite-jumps-6500-per-cent-in-10-years-2515338" target="_blank" rel="noopener">Investors earned Rs 6.5 lakh by investing Rs 10,000 each, this share did wonders.
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