Now Reading: Flexi-cap funds show wide gap in large-cap allocations: data
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Flexi-cap funds show wide gap in large-cap allocations: data
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…
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: 2 sources, 2 neutral
Sources (2): livemint.com (neutral report), economictimes.indiatimes.com (neutral report)
This story was synthesised by AI from the 2 sources linked above.
Updated: this story now draws on 2 sources.
