InvestorQ : Is it true that mutual funds are lining up a slew of flexi cap fund NFOs in the market?
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Is it true that mutual funds are lining up a slew of flexi cap fund NFOs in the market?

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Priyanka N answered.
2 months ago
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It looks like a host of mutual funds are now inspired by the success of the ICICI Pru Flexicap Fund NFO. Last year, SEBI had put severe restrictions on the asset break-up of multi-cap schemes and insisted that multi-cap funds must live up to its name or rechristen themselves as Flexi Cap funds. In the last one year, the small cap and mid cap stocks have done phenomenally well, leading to a surge in interest in the flexi cap funds in India.

The recent ICICI Pru Flexicap NFO which closed a couple of weeks back, collected a record Rs.10,200 crore in the NFO, the highest ever by any Indian mutual fund NFO. Nippon Life AMC and ITI MF have already lined up plans for Flexicap NFO launches. As of 30-Jun, flexi cap had AUM of Rs.1.76 trillion, next second to large cap funds AUM. However, with the strong show by mid can small caps, AMCs clearly want to make hay while the sun shines.

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