Edelweiss Flexi Cap Fund holds 63–69% large caps as peers push mid-small cap bets past 50%

Edelweiss Flexi Cap Fund has positioned itself as a diversified, quality-focused equity offering at a time when market leadership continues to rotate across sectors and market capitalisations. As opportunities increasingly emerge across large, mid and small-cap stocks, the fund’s flexible mandate -- combined with a disciplined investment framework—aims to capture growth while managing volatility across market cycles.

Launched in February 2015, the Edelweiss Flexi Cap Fund follows a market-cap–agnostic strategy, allowing it to invest across the full equity spectrum without rigid allocation constraints. While the fund dynamically adjusts its exposure based on bottom-up stock opportunities, it typically maintains a large-cap–led core of around 60–75%, which helps provide stability and downside protection. The remaining 25–40% is allocated to mid and small caps, offering scope for higher growth when valuations and fundamentals are supportive.

The fund is managed using Edelweiss’s proprietary FAIR investment framework, which stands for Forensics, Acceptable Price, Investment-style agnostic, and Robustness. This framework emphasises clean accounting practices, strong corporate governance, scalable business models and reasonable valuations. Rather than relying on macro calls or market timing, the fund focuses on identifying fundamentally strong businesses capable of delivering sustainable earnings growth over the medium to long term.

Fund overview

As of December 2025, the fund held 82 stocks, reflecting a consciously diversified portfolio. The top 10 holdings accounted for about 31% of the portfolio, limiting concentration risk. Sector exposures are also carefully calibrated, with the fund avoiding outsized bets even in popular themes. Financial services remain a key allocation, supported by exposure to information technology, automobiles, capital goods, healthcare and consumer-oriented sectors—mirroring the breadth of opportunities available across the Indian economy.

Performance has been a key differentiator. Over longer time horizons, Edelweiss Flexi Cap Fund has consistently outperformed both the Nifty 500 TRI and the flexi-cap category average. As of January 31, 2026, the fund delivered strong double-digit annualised returns across three-, five- and ten-year periods, supported by disciplined stock selection and risk management. Its SIP performance has also remained competitive, with the fund staying in the top two quartiles for a majority of rolling periods, while avoiding prolonged phases of underperformance.

The fund’s active management style is reflected in an active share of around 50%, indicating meaningful deviation from the benchmark driven by conviction-led stock picking. At the same time, the fund maintains strict liquidity discipline and avoids holding excessive cash, which Edelweiss believes can drag returns during market recoveries. The strategy remains largely fully invested across cycles, relying on diversification and business fundamentals rather than tactical cash calls.

Edelweiss Flexi Cap Fund vs peers

A closer look at market-cap allocations across the flexi-cap category further highlights Edelweiss’s positioning. Data for the past year shows wide dispersion among peers, with some funds taking aggressive swings between large-cap and mid- and small-cap exposure. Edelweiss Flexi Cap Fund, by contrast, has followed a measured and consistent approach, with large-cap exposure ranging between 62.9% and 68.7%, and mid- and small-cap exposure between 28.3% and 33.5%.

This places the fund squarely in the middle of the peer set—neither aggressively chasing mid- and small-cap momentum nor overly defensive through excessive large-cap concentration. In comparison, some peers sharply reduced large-cap exposure to as low as the low-30% range, pushing mid- and small-cap allocations beyond 50% at peak levels, a strategy that can significantly increase volatility. At the other extreme, a few funds maintained very conservative allocations, with mid- and small-cap exposure capped in the low single digits, limiting participation in broader market growth.

The table underscores how flexi-cap funds can look very different in practice, despite sharing the same category label. Edelweiss’s allocation pattern suggests an emphasis on risk-adjusted consistency, using flexibility to fine-tune exposure rather than to make large directional bets on market segments.

The fund is managed by a seasoned investment team led by Trideep Bhattacharya, CIO – Fundamental Equities at Edelweiss AMC, supported by co-fund managers Ashwani Agarwalla and Raj Koradia. Together, the team brings decades of experience across Indian and global equity markets.

For long-term investors seeking diversified equity exposure with a balance of stability and growth, Edelweiss Flexi Cap Fund offers a structured approach—combining large-cap resilience with selective participation in mid- and small-cap opportunities, anchored by strong governance standards, valuation discipline and a focus on sustainable earnings growth.