Flexicap funds in May: PPFAS bets on Alphabet and Amazon, Motilal chases India's manufacturing boom

India's flexi-cap fund category may appear homogeneous on the surface, but the latest portfolio disclosures for May 2026 reveal sharply different investment philosophies among leading fund managers. A striking contrast has emerged between Parag Parikh Flexi Cap Fund (PPFAS) and Motilal Oswal Flexi Cap Fund, with one leaning on global technology giants and the other doubling down on India's manufacturing and industrial growth story.

While PPFAS continues to maintain exposure to overseas technology companies such as Alphabet, Amazon, Microsoft and Meta Platforms, Motilal Oswal Flexi Cap is increasingly positioning itself around India's capex and manufacturing themes through companies like CG Power and Industrial Solutions, Kalyan Jewellers, Waaree Energies, Siemens and Premier Energies.

Investment philosophies

The divergence highlights two very different approaches to generating long-term returns.

PPFAS has historically followed a value-oriented strategy with a global mandate, allowing it to invest in international businesses alongside Indian equities. The fund's portfolio remains diversified across sectors including banks, information technology, FMCG, power and energy, automobiles, pharmaceuticals and REITs.

According to the latest portfolio update, the fund maintained cash holdings of around 14.5%, while incremental purchases during May were concentrated around existing bets, particularly ITC. The fund also marginally increased its stake in Indian Energy Exchange (IEX), where it is approaching a 10% ownership level.

Its overseas holdings continue to provide investors with exposure to some of the world's largest technology franchises, including Alphabet, Amazon, Microsoft and Meta.

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Motilal Oswal's focus

In contrast, Motilal Oswal Flexi Cap is pursuing a concentrated strategy built around India's domestic growth themes.

The fund held 33 stocks as of May 2026, making it one of the most concentrated portfolios among major flexi-cap schemes. Net equity exposure stood at 94.7%, while cash levels rose to 5.3%.

During May, the fund made nine fresh purchases, including Muthoot Finance, Bharat Dynamics, Premier Energies, RBL Bank and Bharat Heavy Electricals (BHEL).

The portfolio's top holdings continue to include CG Power and Industrial Solutions, Kalyan Jewellers, Eternal, Coforge, Persistent Systems and Waaree Energies, while recent increases in positions such as Siemens, Samvardhana Motherson and Ashok Leyland underline the fund manager's preference for manufacturing, industrial and consumption-linked businesses.

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Growth drivers

The contrasting portfolios illustrate different interpretations of where future earnings growth could emerge.

PPFAS is relying on a combination of Indian businesses and established global technology leaders, providing investors with exposure to international innovation and diversified revenue streams.

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Motilal Oswal, meanwhile, appears to be betting on India's ongoing infrastructure push, rising manufacturing activity and the government's "Make in India" initiatives. Sectors such as electrical equipment, consumer durables, capital markets and automobiles feature prominently in the portfolio.

Interestingly, Motilal Oswal exited several financial names during May, including ICICI Bank and State Bank of India, while retaining conviction in manufacturing-related themes.

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Long-term wealth creation

The comparison underscores how funds within the same category can look dramatically different beneath the surface.

While PPFAS offers investors access to global technology leaders and maintains a sizeable cash cushion, Motilal Oswal is expressing confidence in India's domestic growth story through a relatively concentrated portfolio of industrial, manufacturing and consumption-focused businesses.

For investors, the latest portfolio disclosures demonstrate that choosing a flexi-cap fund is not merely about selecting a category, but also about understanding the underlying investment philosophy driving each portfolio.

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