A type of mutual fund that has the flexibility to invest anywhere in the market: fund managers can invest wherever they come across proper opportunities, without market-cap restrictions. Therefore, investors can diversify across companies of different levels of market capitalization, and can also better control investment risk and volatility. Investment venues may include small-cap, mid-cap, and large-cap companies. This allows fund managers to focus on the growth potential of a company, no matter its size and the segment or industry in which it operates.

The main advantages of flexicap funds include the ability of a fund to fine-tune its risk-return prospects, particularly in terms of the potential to deliver stable returns at times of market turbulence. Another aspect of the flexibility associated with this type of funds is the ability of a fund manager to modify fund allocation (investing in best performing companies/ stocks/ sectors): by changing the proportion of a company or sector depending on the its respective performance from one period to another.