As they say extra ordinary times call for extra ordinary solutions. During the ongoing hyper volatility in markets, investors are getting extra cautious and are now investing in the fund schemes which are safe, dynamic and less prone to volatility. These schemes include flexi cap, large cap and dynamic asset allocation schemes.
Flexi cap funds received ₹2,511 crore in the month of June, large cap funds got ₹2,130 crore and dynamic asset allocation funds saw an inflow of ₹1,799 crore in June, as per AMFI data. These numbers, particularly large cap and flexi cap funds, are highest among the equity mutual fund schemes.
We explain these funds here:
Dynamic asset allocation funds: These funds are also known as balanced advantage fund. They are actively managed funds and invest in a blend of debt and equity depending on market movements. They tweak their allocation to equities and debt depending on their view of the stock markets.
As a category, these funds delivered 2.95 percent return in past one year, according to the morning star data. The top performing fund scheme delivered 11.95 percent return in past one year.
There are 25 schemes under this category and total assets under management are ₹1,40,512 crore. In the month of June, total inflow which these schemes witnessed amounted to ₹1,799 crore.
Flexi cap funds: It is a type of mutual fund that is not confined to investing in companies with a predetermined market capitalisation. A flexi-cap fund offers greater investment choices and diversification possibilities to investors.
As a category, these fund schemes gave a return of 0.88 percent and the top performing scheme delivered 12.64 percent.
There are 31 schemes for 1.2 crore folios under this category. There are ₹2.1 lakh crore net assets under management (AUM). In the month of June, ₹2,511 crore inflow happened in these schemes.
| Fund category | June Inflow ( ₹crore) |
| Dynamic asset allocation | 1,799 |
| Flexi cap | 2,511 |
| Large cap | 2,130 |
(Source: AMFI’s data)
Large cap funds: These are among the most common funds, which invest a huge chunk of their corpus in companies with large market capitalisation. There are 31 schemes under this category. As a category, these funds gave 2.96 percent return in past one year and the top performing fund’s return was 10.95 percent, according to Morning Star data.
There are ₹2.12 lakh crore net assets under management (AUM) under large cap funds. In the month of June, this category saw an inflow of ₹2,130 crore.