Navi Flexi Cap Fund for Better Growth Invest Now

The Navi flexi cap fund is based on this general investment strategy. It is an open-ended equity scheme that aims for long-term capital appreciation and invests in a diversified portfolio of large-cap, mid-cap, and small-cap stocks.

What Is the Navi Flexi Cap Fund?

This fund is an equity mutual fund launched by Navi Mutual Fund.

Understanding the Investment Objective

The main purpose of the scheme is the long-term capital appreciation that can be achieved by investing in equity.

How a Flexi Cap Fund Works

A flexi-cap fund does not restrict its investments to a specific market capitalization and can invest in large-cap, mid-cap, and small-cap companies.

It is an open-ended equity scheme that aims for long-term capital appreciation and invests in a diversified portfolio of large-cap, mid-cap, and small-cap stocks.

Higher growth potential, of course, can go hand-in-hand with heightened volatility. It’s important to know that diversification is not protection from losses.

Large Cap, Mid Cap and Small Cap Exposure

The equity market has three broad market segments each having a different role.

Large-cap companies generally represent larger listed businesses, while mid-cap companies occupy the middle range between large-cap and small-cap companies by market capitalisation, and small-cap companies generally represent smaller listed businesses.

A flexi-cap structure enables the fund manager to move between these segments without restricting the fund to a single segment.

One such key feature investors need to comprehend while delving into this fund research is its flexibility.

Key Features of the Navi Flexi Cap Fund

Open-ended, equity-oriented portfolio, multi-capitalization, Growth and IDCW, SIP facility and NIFTY 500 TRI are some of the most important features of the scheme.

Open-Ended Equity Scheme

The scheme is an open-ended equity fund, and investors can purchase or redeem units on business days at rates determined by the scheme’s NAV.

This flexible structure allows investors to invest in the scheme without committing to a specific maturity date.

Equity-Focused Investment Approach

In the normal asset allocation pattern mentioned in the Scheme Information Document, the equity and equity related instruments can be from 65% to 100% of the total asset value. The debt and money market instruments can make up 0% – 35%.

The scheme can also invest in InvITs, up to a limit of Rs. 10,000 crores, and utilize derivatives for legally allowed purposes, like hedging and portfolio balancing.

This reinforces the idea that investors need to expect a volatile stock market.

NIFTY 500 TRI as the Benchmark

The Navi flexi cap fund has NIFTY 500 TRI as its benchmark. According to the Scheme Information Document, NIFTY 500 comprises 500 companies selected from the eligible universe based on their full market capitalization.

Why the Benchmark Matters

A benchmark provides investors with a benchmark to help them understand the performance of the fund.

If your fund can give you some returns in a specific time frame, what are they? If you just take a look at that number, you get just a part of the picture. It can help to give some context if it is compared with the relevant benchmark.

But past performance or the benchmark does not ensure future performance.

Navi Flexi Cap Fund Regular Plan Growth

There are two plans for the fund, Regular Plan and Direct Plan. There are options to choose from under Growth and Income Distribution cum Capital Withdrawal in each plan.

In the Regular Plan, there is an intermediary or director involved, and in the Direct Plan, there is no intermediary or director. The expense structure may vary from that of Regular Plan to that of Direct Plan so investors should be aware and check the latest scheme documents and expense ratios prior to investing.

What Does the Growth Option Mean?

The Growth option suits investors who want to keep their gains invested in the scheme instead of receiving them as IDCW distributions.

Regular Plan vs Direct Plan

It is crucial to make this point when looking for a Navi flexi cap fund direct growth option.

The Regular Plan and the Direct Plan share the same underlying scheme portfolio, but each plan operates separately with its own NAV, as applicable.

An intermediary distributes the Regular Plan, while the Direct Plan allows investors to invest directly with the mutual fund without paying distributor commissions.

These terms are not to be used as a quick indicator of investment results. Rather, investors should do the cost and services comparison, investment road and their preferences.

Understanding the Navi Flexi Cap Fund Direct Growth Keyword

Those who seek the Direct Plan Growth option online might be using the term Navi flexi cap fund direct growth.

This article will, however, look at the Regular Plan Growth option.

The plan-level expenses and NAVs may vary between the two plans, even though both belong to the same scheme and share a common portfolio. It is, therefore, important for investors to choose the plan according to their investment strategy and fees associated with them.

Navi Flexi Cap Fund for Long-Term Wealth Creation

It’s not just about trying to get a feel for what’s going to happen in the future, but it’s more about creating a process that you can rely on for years.

The Navi flexi cap fund has a wide equity-market investment mandate as it invests in both the large, medium and small cap companies. As per the objective of the scheme, it aims at making a long-term capital appreciation.

However, keep in mind that flexibility doesn’t mean an assurance.

Markets can potentially trade up and down and sideways. Any diversified portfolio can have significant short-term volatility.

That’s why it’s important to link the fund to a bigger financial goal, rather than viewing it on its own.

Conclusion

The Navi flexi cap fund is an open-ended equity fund with a medium to long-term investment horizon that invests in large-cap, mid-cap and small-cap companies.

Investors looking for Navi flexi cap fund direct growth should also be aware that Direct Plan is a distinct plan of the same scheme, which has its own NAV and expenses.

FAQs

1. Is Navi Flexi Cap Fund a flexi cap mutual fund?

Ans) Yes. This fund is an open-ended equity scheme that invests in large-cap, mid-cap, and small-cap companies. It says it aims to invest for long-term capital growth in a diversified equity portfolio.

2. What is Navi flexi cap fund direct growth?

Ans) Navi flexi cap fund direct growth means Direct Plan Growth option of Navi Flexi Cap Fund. The scheme is available in two plans, Regular Plan and Direct Plan each of which comprises Growth and IDCW options. The Direct Plan and Regular Plan are part of the same portfolio, but have separate NAVs, if applicable.

3. What is the minimum investment in Navi Flexi Cap Fund?

Ans) According to the cited Scheme Information Document, investors can make a minimum application of ₹100 and further investments in multiples of ₹1. Investors should check the latest scheme documents to confirm any changes since their preparation.

4. Does Navi Flexi Cap Fund offer a SIP facility?

Ans) Yes. The scheme provides the option for a SIP facility with various frequencies from daily, weekly, fortnightly, monthly, quarterly to half-yearly depending on the applicable terms and conditions.

5. Is Navi Flexi Cap Fund suitable for short-term investment?

Ans) The aim of the scheme is long term capital appreciation and the risk category of the scheme is Very High Risk. So investors should look at the time frame for their investment and how much they can afford to take on equity market risk, not just because of short term investment goals.