These 3 Flexi-Cap Mutual Funds Were Unaffected by Market Crash

October brought severe challenges for equity investors as the stock market faced a bloodbath, with the Nifty500 falling 8.3% since its peak on September 27. Foreign Institutional Investors (FIIs) pulled out a staggering Rs 1.45 lakh crore from the market during October, further exacerbating volatility. However, in this chaos, some flexi-cap mutual funds managed to outperform, demonstrating their ability to cushion against downturns.

Top Three Flexi-Cap Mutual Funds That Delivered

NAV as of November 25, 2024, and MTD refers to Month-to-date performance

Despite the turbulence, three flexi-cap funds delivered positive returns in October, proving their resilience in uncertain times.

1. Motilal Oswal Flexi Cap Fund

• MTD Return: 2.58%
• NAV: Rs 67.23
• AUM: Rs 12,023.89 crore
• Portfolio Highlights:
  • The fund has 97.2% exposure to domestic equities, with 15.62% in large-cap, 9.63% in mid-cap, and 17.85% in small-cap stocks.
  • Top Holdings: Polycab India Limited, Trent Limited, Kalyan Jewellers India Ltd.

Motilal Oswal Flexi Cap Fund’s diverse portfolio, including small-cap stocks, has enabled it to navigate volatility effectively.

2. Invesco India Flexi Cap Fund

• MTD Return: 1.37%
• NAV: Rs 19.25
• AUM: Rs 2,269.68 crore
• Portfolio Highlights:
  • The fund holds 98.59% in domestic equities, with 28.43% in large-cap, 10.56% in mid-cap, and 10.83% in small-cap stocks.
  • Top Holdings: ICICI Bank, HDFC Bank, and Infosys.

This fund’s strong focus on the banking and IT sectors has contributed to its stability during the market downturn.

3. UTI Flexi Cap Fund

• MTD Return: 1.35%
• NAV: Rs 340.66
• AUM: Rs 25,923.63 crore
• Portfolio Highlights:
  • The fund has 95.61% equity allocation, with 36.73% in large-cap, 21.48% in mid-cap, and 10.52% in small-cap stocks, along with 0.52% in government securities.
  • Top Holdings: ICICI Bank, HDFC Bank, Bajaj Finance.

With a significant allocation to banking and financial stocks, UTI Flexi Cap Fund has weathered market fluctuations effectively.

Why Flexi-Cap Mutual Funds Shine During Volatility

Flexi-cap mutual funds are known for their adaptability, as they invest across large-cap, mid-cap, and small-cap stocks. This flexibility enables fund managers to mitigate risks and capitalize on opportunities, making them a go-to choice during market downturns.

What Investors Can Learn

Flexi-cap mutual funds are a valuable tool in uncertain markets due to their inherent flexibility and balanced portfolio construction. While past performance doesn’t guarantee future results, these funds highlight the importance of diversification and dynamic asset allocation in achieving stable returns even during volatile periods.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.