Flexi cap fund is required to invest 65 per cent of the total assets, in equity and equity related instruments. However, unlike multi cap funds, there are no restrictions in allocating funds across large, mid and small caps.For the investors it offers a good opportunity to invest across market capitalisation, where fund management skills and outlook will define the allocation, say market experts.Market regulator Securities and Exchange Board of India (Sebi), on November 6, 2020, introduced this new category under equity scheme.Investors will stand to gain from complete flexibility available with the fund management. “If fund management believes there is an opportunity in mid cap or small cap space to generate additional returns for investors, it will increase allocation and vice-a-versa when more optimistic about large cap companies,” explains Harshad Chetanwala, MyWealthGrowth.comFlexi cap funds have the same characteristics of the earlier version of multi-cap funds.There is no clause of minimum investment in any market capitalisation. This liberty plays a pivotal role for the fund management in managing the investors’ money.Further it also addresses the concerns regarding the recent rejig of multi cap funds. “This is in the interest of investors who prefer to let the fund managers decide the split of large, mid and small cap exposure, based on the evolving opportunities and merit of the segment,” points out Arun Kumar, Head of Research, FundsIndia.com.Investors with moderate and high risk appetite can consider investing in these funds as it provides good opportunity from growth. “There is a possibility that flexi cap funds may have around 5 to 10 per cent in small cap, which add an element of risk. For risk averse investors and beginners, it is better to start with large cap funds and after gaining confidence diversifyinvestmentin flexi cap funds,” says Chetanwala.