Flexi-Cap Funds Show Wider Losses During Extended Equity Market Decline

Indian equity mutual funds have come under sustained pressure since late September 2024, with both large-cap and flexi-cap schemes registering negative returns, according to recent fund performance data.

An analysis of returns from September 26, 2024, to March 6, 2026, reveals that large-cap funds fell an average of 6.98%, while flexi-cap funds declined 8.67%. This suggests that flexi-cap portfolios, which span multiple market capitalisations, have been more severely impacted during the prolonged market correction.

The nearly 18-month downturn has tested investor portfolios across the equity mutual fund spectrum, highlighting differences in risk and resilience between fund categories.

Large-Cap Funds: Contained Declines

Within the large-cap segment, some funds weathered the market turbulence better than others.

• Motilal Oswal Large Cap Fund recorded the smallest decline at -1.16%.
• Nippon India Large Cap Fund and SBI Large Cap Fund also demonstrated relative resilience, falling -3.71% and -4.42%, respectively.

Conversely, a few large-cap schemes faced sharper corrections:

• Quant Large Cap Fund dropped the most at -12.33%,
• followed by JM Large Cap Fund (-10.83%) and ITI Large Cap Fund (-10.25%).

Overall, the large-cap category experienced more moderate losses compared with flexi-cap funds, reflecting the defensive nature of portfolios concentrated on well-established companies with stable earnings.

Also Read: Equity Mutual Funds Decline Up to 11% in a Week as International Funds Face the Sharpest Losses

Flexi-Cap Funds: Greater Divergence

Flexi-cap funds, which allow managers to allocate across large-, mid-, and small-cap stocks, displayed wider performance dispersion.

While some funds managed modest gains despite broader market weakness:

• HDFC Flexi Cap Fund returned 0.33%,
• Parag Parikh Flexi Cap Fund gained 0.32%.

However, several funds recorded double-digit declines, with the steepest drops including:

• Samco Flexi Cap Fund (-23.38%),
• NJ Flexi Cap Fund (-20.66%),
• Shriram Flexi Cap Fund (-16.90%),
• JM Flexi Cap Fund (-16.57%), and
• Quant Flexi Cap Fund (-15.88%).

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation or investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Mutual fund investments in the securities market are subject to market risks, read all the related documents carefully before investing.