Flexi mutual funds can select the proportion of large, midsize, and small cap stocks as they see suitable. Multi-cap funds, on the other hand, are required to maintain a minimum threshold of 25% in each of the three fund types. When this distinction was made following the implementation of SEBI guidelines, a number of mutual funds in the multi cap category switched to flexi cap. Since many AMCs have yet to introduce fund schemes in the multi cap sector, it is still very open.