Flexi Cap Funds Boost Exposure to Defence, Power and Capital Market Stocks in May

Leading flexi cap mutual funds increased their exposure to India's capital expenditure and manufacturing themes during May 2026, with portfolio disclosures showing fresh investments in defence, power, industrial and capital market-linked companies. 

Motilal Oswal Flexi Cap Fund, HDFC Flexi Cap Fund, Helios Flexi Cap Fund and JM Flexi Cap Fund were among the schemes that increased allocations to stocks benefiting from infrastructure development, defence manufacturing and financial market expansion. 

Defence and Manufacturing Stocks Witness Fresh Buying 

Defence and industrial companies remained among the key beneficiaries of fund inflows during the month. 

Bharat Dynamics, Bharat Heavy Electricals (BHEL) and Premier Energies saw fresh additions by Motilal Oswal Flexi Cap Fund, reflecting the fund's focus on India's manufacturing and capital expenditure cycle. 

Helios Flexi Cap Fund also increased its allocation to Solar Industries, which has a growing defence business, while adding exposure to Samvardhana Motherson. 

JM Flexi Cap Fund introduced Titagarh Rail Systems to its portfolio while increasing holdings in Larsen & Toubro and Samvardhana Motherson. 

Power and Energy Stocks Remain in Focus 

Motilal Oswal Flexi Cap Fund increased its exposure to Siemens, while Premier Energies, and BHEL featured among fresh additions. 

Helios Flexi Cap Fund also raised its investment in Power Grid Corporation of India, reflecting continued interest in electricity transmission and infrastructure development. 

The allocations indicate fund managers' focus on sectors linked to renewable energy investments, rising power demand and industrial expansion. 

Capital Market Companies Attract Fund Inflows 

Capital market infrastructure companies also witnessed fresh buying during the month. 

Helios Flexi Cap Fund added Computer Age Management Services (CAMS) and increased its exposure to BSE, while HDFC Flexi Cap Fund added ICICI Prudential Asset Management Company and Nippon Life India Asset Management to its portfolio. 

The additions highlight continued interest in companies benefiting from increasing retail participation and mutual fund inflows. 

Read More: IPO Activity Likely to Pick Up in H2 2026; Companies Eye ₹60,000 Crore Fundraising 

Adani Enterprises Also Sees Fresh Interest 

Another notable trend during May was the addition of Adani Enterprises by both Helios Flexi Cap Fund and JM Flexi Cap Fund. 

The purchases reflect selective interest in companies linked to infrastructure development, logistics and energy transition themes. 

Conclusion 

Portfolio disclosures for May 2026 indicate that several flexi cap mutual funds increased exposure to defence, manufacturing, power and capital market-related companies. Stocks such as Bharat Dynamics, BHEL, BSE, CAMS, Premier Energies and Adani Enterprises emerged among the key beneficiaries as fund managers positioned portfolios around India's long-term capex and infrastructure growth themes.