New Delhi, Jan. 22 -- An investor, depending on their risk profile, must diversify their equity portfolio across large-, mid-, and small-cap companies. In 2025, the Nifty 50 delivered a decent 10% return, the Nifty Midcap 150 Index was subdued with a 5% return, and the Nifty Smallcap 250 Index was the worst performer, falling 6%. Over the years, these indices take turns to outperform each other. Hence, the investor must diversify to spread risk and earn risk-adjusted optimum returns.

The flexi-cap and multi-cap mutual funds provide you with an opportunity to take exposure to large-, mid-, and small-cap companies through a single scheme. However, the way the two schemes work is different. In this article, we will understand how these sche...