Multi cap v/s Flexi cap!

AMCs offer two categories of mutual fund schemes which invests across all three market caps. One is Multi Cap and second is Flexi Cap. The key difference between the two is that the latter has the flexibility of changing allocation between large-caps, mid-caps and small-caps while ensuring 65 percent of their assets are allocated to equity instruments. A fixed asset allocation can reduce the flexibility of a multi-cap fund to adjust its portfolio in response to changes in the market. This can be a disadvantage if the market undergoes a significant change, such as a crash or a bull run.