One fund must hold small caps.
The other can hold none.
25
Pct of a multicap fund locked into small caps every single day it exists. A flexicap on the same shelf can hold zero.
Cousin forwards me two funds last week. Both filed under the same tab on his app. Diversified equity, go anywhere. He is about to pick whichever number is bigger. Asked him one thing first. Did he know one of them is forced by rule to keep a quarter of his money in small caps, crash or no crash, and the other one is free to hold none? He did not. Same shelf. Opposite floors.