Hyderabad Investors Turn to Tata Flexi Cap & Tata Multi Asset Funds amid Market Volatility

Hyderabad Investors Turn to Tata Flexi Cap & Tata Multi Asset Funds amid Market Volatility
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Markets have been highly volatile in recent months, driven by foreign fund outflows, crude oil swings, geopolitical tensions, and uneven corporate earnings. In such times, investors need strategies that seek to balance growth and stability. Flexi cap funds and multi asset allocation funds are gaining traction for their diversification and adaptability, helping investors navigate uncertainty.

“Today’s market volatility, driven by shifting global cues and sectoral valuation gaps, calls for investment strategies that combine flexibility with diversification. Flexi cap funds provide this through dynamic allocation across large, mid, and small caps, while multi asset allocation funds seek to enhance resilience by spreading exposure across equities, fixed income, gold, and commodities,” said Sailesh Jain, Fund Manager, Tata Asset Management.

As per AMFI data, net inflows into flexi cap funds doubled in 2025 (till August), rising to Rs. 46,867 crore from Rs. 22,751.3 crore in the same period a year ago, while multi asset allocation funds drew Rs. 23,989.3 crore, the second-highest among hybrid categories. Mirroring industry trend, Tata Flexi Cap Fund and Tata Multi Asset Allocation Fund also gained traction, with their average assets under management (AUM) growing 12.5% and 27% year-on-year to Rs. 3,385 crore and Rs. 4,040 crore, respectively, as of August 31, 2025 (Source: Tata MF). Tata Flexi Cap Fund received inflows of Rs. 456 crore so far in 2025, double of last year’s levels, with Hyderabad contributing a 74% rise in investments to Rs. 7.39 crore.

“Flexi cap and multi asset funds offer investors a smart asset allocation framework—helping portfolios stay agile, capture opportunities, and withstand market shocks. The encouraging participation from investors in Hyderabad reflects their growing confidence in such diversified approaches,” Jain said.

While flexi cap funds give managers the leeway to shift towards large caps during uncertain phases for stability, and to mid- and small-caps when higher return potential outweighs risks, multi asset allocation funds add a second layer of protection by balancing across asset classes, cushioning portfolios against sharp corrections.

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