By Alex V 
Unifi Mutual Fund announced on May 21 the launch of its much-anticipated Flexi Cap Fund, leveraging the Growth at a Reasonable Price (GARP) strategy to offer investors a diversified equity solution. The fund, open for subscription starting this week, is designed to provide long-term capital appreciation by strategically investing across large, mid, and small-cap companies.
Unifi Flexi Cap Fund: A New Diversified Equity Offering
Unifi Mutual Fund, a well-regarded name in the asset management industry, has introduced its Flexi Cap Fund in response to growing investor interest in diversified equity schemes that can dynamically shift allocations across market caps. According to the fund’s official announcement, the new scheme blends growth and value investing philosophies using the GARP framework, targeting companies expected to deliver strong earnings growth at reasonable valuations.
“Flexi Cap Funds offer the investor the flexibility to capitalize on opportunities across the market spectrum,” said Prabhakar Reddy, Managing Director of Unifi Capital. “Our GARP-based approach emphasizes quality and sustainable growth, while being mindful of valuations — a philosophy that we believe resonates with prudent long-term investors.”
What Is the GARP Strategy in Mutual Funds?
Growth at a Reasonable Price (GARP) is an investment methodology that seeks companies offering consistent earnings growth at valuations that are not excessive. Unlike pure growth or value strategies, GARP combines elements of both, aiming to avoid overpaying for anticipated growth while steering clear of undervalued firms with weak prospects.
In the context of the Unifi Flexi Cap Fund, the fund managers will evaluate companies across sectors, focusing on those with robust business models, proven management teams, and resilient financial health. The GARP filter is designed to mitigate risks associated with overvalued equities — a crucial consideration in volatile markets.
Key Features and Benefits of the Unifi Flexi Cap Fund
Diversification Across Market Caps
The Flexi Cap category allows fund managers to invest in any ratio across large, mid, or small-cap stocks. This dynamic flexibility lets the fund capitalize on trends in any segment of the market, potentially reducing risk and enhancing returns.
Emphasis on Quality and Growth
The GARP strategy employed by Unifi focuses on quality stocks with sustainable earnings growth, aiming to deliver better risk-adjusted returns compared to peers using conventional approaches.
Active Management
Unifi’s experienced investment team will actively monitor portfolio holdings and adjust allocations as market dynamics evolve, in keeping with its reputation for robust research and disciplined capital allocation.
Markets today require a nuanced investment strategy that goes beyond static allocation, noted fund manager Anirudh Sethi in the launch webcast. “The Flexi Cap Fund embodies our commitment to active management and research-driven stock selection.
NFO Details and Subscription Window
The New Fund Offer (NFO) for the Unifi Flexi Cap Fund is set to open on May 23, 2025, and will close on June 7, 2025. The minimum investment amount has been set at ₹5,000, with further investments in multiples of ₹1 thereafter. Investors can subscribe via both online and offline channels through registered distributors and brokers.
Key Highlights:
NFO Opening Date: May 23, 2025
NFO Closing Date: June 7, 2025
Benchmark: Nifty 500 TRI
Minimum Investment: ₹5,000
Expert Perspectives and Market Context
The launch of the Unifi Flexi Cap Fund aligns with a broader industry trend—Flexi Cap mutual funds have become increasingly popular in India, accounting for over ₹3 lakh crore in assets under management as of March 2025, according to the Association of Mutual Funds in India (AMFI).
“Flexi Cap funds offer an excellent balance between stability and growth, especially in uncertain markets,” said independent investment advisor Sneha Mehra. “The integration of the GARP strategy makes Unifi’s offering especially relevant for investors who are wary of market froth but still want to participate in India’s growth story.”
Caution on Market Risks
While diversified equity funds provide several benefits, potential investors should note that returns are subject to market risks and fund manager expertise. As with all mutual fund investments, it is advisable to assess one’s own risk profile and consult with a certified financial planner before investing.
How Does the Unifi Flexi Cap Fund Compare?
When compared to existing Flexi Cap funds from industry leaders such as HDFC, SBI, and Kotak, Unifi’s GARP-centric approach stands out for its disciplined valuation focus and active management philosophy. While competitors may rely more on momentum or sector rotation, Unifi aims to mitigate downside risk by avoiding overpriced stocks even in bullish phases.
Sources Used:
Business Today: Unifi Mutual Fund launches Flexi Cap Fund
AMFI Mutual Fund Industry AUM Data
LiveMint: What is GARP Investing? (January 2025)
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