# Flexi-cap funds show wide gap in large-cap allocations: data

2026-08-19T23:22:26+00:00 | Business & Economy | Indian Opinion Desk

Corroboration: 2 independent outlets

The flexi-cap mutual fund category shows significant variation in large-cap stock allocation, ranging from 91.14% to 37.79% among the top 10 funds by assets under management, according to Value Research data reported by Livemint. Parag Parikh Flexi Cap Fund had the highest large-cap exposure at 91.14%, while Motilal Oswal Flexi Cap Fund had the lowest at 37.79%, well below the category average of 58.41%. Sebi rules require flexi-cap funds to invest at least 65% in equities but give managers full discretion on market-cap distribution, leading to this wide spread. Separately, the Economic Times reports that multi-cap funds, which invest across large, mid and small-caps, delivered a 15.53% annualised return over 21 years with lower volatility (23.4%) and drawdowns (66.8%) than pure mid and small-cap funds. Wealth managers say multi-caps help retail investors avoid timing market segments and manage behaviour during downturns. The WhiteOak Capital study compared the Nifty 500 Multicap 50:25:25 TRI against large, mid and small-cap indices from April 2005 to July 2026.

## Indian Opinion Analysis

Livemint reports the data on varying large-cap allocations among flexi-cap funds without any judgement, while the Economic Times frames the same category as a tool for managing volatility and drawdowns. Livemint emphasises the investor's need to examine portfolio overlap, and the Economic Times emphasises the behavioural advantage for retail investors during market stress. Neither outlet is pro-government or critical, both are neutral-report, but Livemint is more data-heavy while Economic Times is more advisory. A careful reader should note that both articles are complementary: the first is a diagnostic on allocation differences, the second a prescriptive on why multi-caps might suit certain investors. Watch for Sebi's next review of category rules, which could standardise definitions.

## Coverage

Coverage: 2 sources, 2 neutral
- livemint.com (neutral report) <https://www.livemint.com/money/personal-finance/flexicap-funds-with-the-highest-and-lowest-large-cap-stock-allocation-what-the-data-shows-11787158717875.html>
  Neutral data dump on allocation percentages, no advisory or opinion beyond a disclaimer
- economictimes.indiatimes.com (neutral report) <https://economictimes.indiatimes.com/mf/analysis/multi-cap-funds-offer-equity-like-returns-with-lower-drawdowns/articleshow/133361636.cms>
  Advisory framing on multi-cap funds managing volatility and investor behaviour

This story was synthesised by AI from the 2 sources linked above.
Updated: this story now draws on 2 sources. Last updated 2026-08-20T02:25:47+00:00.

Tags: Motilal Oswal Flexi Cap Fund, Parag Parikh Flexi Cap Fund, SEBI, Value Research
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How this brief was made: an AI model read the reports linked above and wrote this summary and analysis, which were published automatically. Published briefs are sampled every hour by an automated quality check; the editor verifies its findings and approves corrections, and corrected briefs carry a dated correction line. Stance labels are editorial classifications of how each outlet framed this story, assigned by the same model, not ratings of the outlets. We do no original reporting. Methodology: https://indianopinion.org/ai-use-policy/