NIFTY 500 TRI

Sorry, wrong answer. Aditya Birla Sun Life Flexi Cap Fund is benchmarked against the NIFTY 500 TRI which is a more extensive blend of the top large, medium and small cap companies in the National Stock Exchange, rather than just the top 100.

Perfect! Aditya Birla Sun Life Flexi Cap Fund is indeed benchmarked against the NIFTY 500 TRI. This index makes for a good, comprehensive blend of the top companies from across all market caps. This includes small caps that are not able to make it to the NIFTY 50 or NIFTY 100 TRI.

Nope. The right answer is the NIFTY 500 TRI, since it covers the top companies from all three market caps, including the small caps which might not be included in the NIFTY Next 50 or NIFTY 100 TRI.

All of the above

Close, but not completely right. Flexi cap fund invests only up to 5% in debt instruments. Its primary investment is in equities, with an inclination towards large caps. It also has the flexibility to invest in derivatives and foreign securities. So the right answer is (d) All of the above.

Almost right. Flexi cap fund is an equity fund that invests in small, mid, and large-cap stocks. But the fund manager also has the flexibility to invest in debt, money market instruments, and derivative positions. So the right answer is (d) All of the above.

Partially correct. Flexi cap fund has the option to invest up to 50% of the portfolio in derivative instruments. But its primary focus is on large, mid, and small-cap equity, with the flexibility to put some assets in debt and money market instruments as well.

Bingo! It was a tricky question, but you know your investments well. Flexi cap fund largely invests in equity, but the fund manager can also take derivative positions and switch some money to debt and money market instruments to make the most of market cycles.

False

Sorry, wrong answer. Flexi cap is an equity fund that invests across large, mid, and small cap stocks. Whereas a hybrid fund balances allocation in debt and equity with an aim to diversify across asset classes and minimize equity risk.

Fantabulous! You are a mutual fund genius. Flexi cap is an equity fund that invests across large, mid, and small cap stocks. Whereas a hybrid fund invests in both equity and debt to balance out risk between the two asset classes.

It has a three-year lock-in period

Oh no no no. This statement IS applicable to Aditya Birla Sun Life Flexi Cap Fund. It is open-ended scheme, which means you can buy and redeem any number of units of the fund anytime. And the fund invests in equity.

Better luck next time! This statement does apply to Aditya Birla Sun Life Flexi Cap Fund as it has experienced fund managers who closely monitor the market movements and have the flexibility to restructure the asset allocation among the three caps with the aim of optimizing returns.

Ha! Confused you there, didn’t we? This statement about the fund is true. Aditya Birla Sun Life Flexi Cap Fund diversifies across large, mid and small cap companies belonging to a variety of sectors and industries. This helps to make the most of every market situation, even during times of volatility.

Good catch! Yes, you are right. This is NOT Applicable to Aditya Birla Sun Life Flexi Cap Fund. It is an open-ended scheme, which means you have the freedom to buy and redeem the units anytime. There is no lock-in period.

Individuals seeking long term wealth creation

Not Exactly. Aditya Birla Sun Life Flexi Cap Fund is a but not ideal for investors seeking tax relief. Tax-relief funds are different. They allow you to deduct the invested amount from your taxable income.

No no no no. Aditya Birla Sun Life Flexi Cap Fund is a high-risk equity fund as it is exposed to stock market volatility. It is not suitable for investors seeking stable returns but for those seeking long term returns.

Sorry. Aditya Birla Sun Life Flexi Cap Fund is not suitable for retirees seeking consistent income as it is a high-risk fund exposed to market volatility. It is suitable for those seeking to create wealth in the long-term.

You’ve got the fund right. Aditya Birla Sun Life Flexi Cap Fund is for you if you aim to create wealth in the long term by investing across market cycles with measured volatility.

Flexibility to move across market caps without any minimum capping

You sure are a Flexi Cap Master! Other funds such as multi-cap funds have to invest a minimum of 25% each in large, mid and small cap stocks, with 25% flexibility to the fund manager to invest as per the current market situation. Not so with the Flexi Cap fund. It can not only invest and move across all three market caps, but has no limitation whatsoever on the minimum amount to be invested in any particular cap. So it’s truly flexible!

Gotcha! Nope, the answer is incorrect. While Flexi Cap fund also invest in large, mid and small cap stocks, there is no such 25% limit on it. The Fund Manager has complete freedom and flexibility to move across market caps as per the current market situation. The 25% minimum investment rule is actually applicable to multi-cap funds.

So close, yet so far. Wrong answer. While the Flexi Cap fund does have a large cap bias, the Fund Manager still has complete freedom and flexibility to move across market caps as per the current market situation. Thus, he can allocate a major portion of the investment to even mid or small cap stocks if the market movements indicate it to be a more profitable move.