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As per Sebi norms, focused equity mutual fund schemes must invest in a portfolio of maximum 30 stocks. These schemes have no other restrictions when it comes to investing- like flexi cap schemes they can invest in any market capitalisations and sectors. If that investment strategy appeals to you, you can get to know more about focused equity schemes.
As per the Sebi mandate, large & mid cap schemes are open-ended equity schemes that will invest a minimum of 35% of total assets in large cap companies, and a minimum of 35% of total assets in mid cap stocks.
Investing in small caps is not a childs play. You will have to find successful fund managers who specialise in small cap stocks. You should also pay attention to how the schemes fared during the market downturn.
Mid cap schemes invest in mid cap stocks or in stocks of medium-sized companies. As per Sebi norms, mid cap schemes are mandated to invest in companies that are between 101 and 250 in market capitalisation.
Flexi cap mutual funds offer the fund managers the freedom to invest across market capitalisations and sectors/themes. It means the fund managers can invest anywhere based on his outlook on the market.