₹5 lakh crore flexi-cap universe reveals wide risk gap: Here’s how 22 funds are positioned

Allocation differences

Parag Parikh Flexi Cap Fund (PPFAS) had the highest large-cap allocation among the funds tracked, at 91% of its equity portfolio. Franklin followed with 76.9%, while HDFC and Quant had large-cap allocations of 75.7% and 75.5%, respectively.

Capitalmind leads in mid-cap exposure

At the other end of the spectrum, Capitalmind had the highest mid-cap exposure at 40.6%, followed by Motilal Oswal at 36%. Trust MF and Aditya Birla also had relatively high mid-cap allocations of 28.2% and 27.6%, respectively.

The divergence becomes even more pronounced in small caps. Old Bridge had 52.3% of its equity portfolio allocated to small-cap stocks, the highest among the funds in the snapshot. Bank of India followed at 33.7%, while Capitalmind and Abakkus had 33% and 31.4%, respectively, in small caps.

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This compares with the category median of just 17.1%, underscoring the extent to which individual fund managers can position their portfolios differently within the same flexi-cap category. Such differences can become particularly important across market cycles, as mid- and small-cap stocks can experience sharper swings in both valuations and earnings expectations.

Flexi-cap funds: Key portfolio allocations 

Category-level allocation

Equity, debt and cash allocations also vary

The variation is also visible when looking beyond market capitalisation. JioBlackRock had the highest equity allocation at 99.4%, followed by Quant at 98.9%, Capitalmind at 98.8% and WhiteOak and Mirae Asset at 98.6% each.

Quant stood out for its debt allocation, at 22.3%, substantially above the category median of 3.4%. PPFAS had 12.4% in debt, while Bank of India had 9.3%. Franklin, meanwhile, held the highest cash allocation at 5.1%, followed by PPFAS at 2.3%.

Why investors cannot treat all flexi-cap funds alike

The data highlights the flexibility inherent in the category. Fund managers can alter allocations depending on their assessment of valuations, market conditions and investment opportunities. As a result, a flexi-cap fund with a predominantly large-cap portfolio can have a very different risk-return profile from one with substantial mid- or small-cap exposure.

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For investors, this makes portfolio analysis important even when selecting funds within the same category. Market-cap allocation should be assessed alongside the fund’s investment strategy, asset allocation and the investor’s own risk tolerance and time horizon. Investors should also remember that current allocations are a snapshot and can change as fund managers reposition portfolios.

The July snapshot covers the 22 flexi-cap funds currently tracked in the dataset. Market-cap allocation is calculated on the equity portion of the portfolio, while international holdings are classified as large caps. Equity allocation includes REITs, InvITs and derivatives wherever applicable.