1. Market Dependency : Flexi-cap funds, just like any other equity fund, is also susceptible to market risk. Therefore, its performances see-saw as per the dynamic behaviour of the markets.

2. Flexi-cap fund success hugely relies on the market predictability skill of the fund manager. Negative returns may significantly deter performance if the investor timed the market poorly.

3. Flexi-caps would experience higher volatility more probably when invested in high-value, uncertain times-small cap stocks. Even considering all adjustments, the potential of returning the money is linked with the market.