Market volatility boosts flexi-cap funds: Comparing Jio BlackRock vs Capitalmind vs Abakkus

Flexi-cap mutual funds saw strong investor inflows in 2025 as market volatility underscored the value of flexibility in portfolio construction. With the ability to invest across large-, mid- and small-cap stocks without fixed allocation limits, the category allowed fund managers to navigate sharp divergences in performance across segments during the year.

As several new funds entered the flexi-cap space, investors are now presented with distinctly different approaches to the same mandate. Jio BlackRock Flexi Cap Fund, Capitalmind Flexi Cap Fund and Abakkus Flexi Cap Fund exemplify how strategies within the category can vary significantly in terms of risk management, stock selection and return expectations.

Institutional, tech-led approach

Jio BlackRock Flexi Cap Fund differentiates itself through an institutional, technology-driven investment framework. Supported by BlackRock’s Aladdin risk management platform, the fund combines systematic models with active oversight to build a diversified portfolio across market capitalisations. With assets under management exceeding Rs 2,200 crore and a relatively low expense ratio of 0.50%, it is positioned as a scalable core holding for long-term investors.

The portfolio has a clear tilt towards large-cap leaders such as HDFC Bank, Reliance Industries, Infosys and Tata Consultancy Services, reflecting a preference for stability and risk control over aggressive alpha generation. While the approach offers strong downside management potential, the fund’s relatively short performance track record limits the ability to assess how it may perform across full market cycles.

Key Top Holdings:
> HDFC Bank 
> ICICI Bank 
> Reliance Industries 
> Infosys 
> State Bank of India 
> Larsen & Toubro 
> Tata Consultancy Services
> Bharti Airtel
> HCL Technologies
> InterGlobe Aviation
> Titan Company
> Adani Ports & SEZ
> Hero MotoCorp
> Britannia Industries
> Bharat Petroleum
> Radico Khaitan
> Life Insurance Corporation of India

Tactical and momentum-oriented strategy

Capitalmind Flexi Cap Fund adopts a markedly different style, emphasising tactical allocation and momentum-based investing. Managed by Anoop Vijaykumar, the fund actively adjusts exposure based on market signals, blending quantitative models with discretionary oversight. This has resulted in higher exposure to mid-cap and emerging companies such as One97 Communications, Narayana Hrudayalaya and Aster DM Healthcare.

With an expense ratio of 0.97%, the fund is costlier than some peers but has delivered stronger early returns since inception. Its strategy is suited to investors comfortable with higher volatility and frequent style shifts, as performance may fluctuate sharply depending on market trends and momentum reversals.

Key Top Holdings:

> Bajaj Finance
> Bharti Airtel
> Clearing Corporation of India
> InterGlobe Aviation
> Indian Bank
> City Union Bank
> Fortis Healthcare
> One97 Communications
> Narayana Hrudayalaya
> UPL
> The Federal Bank
> Radico Khaitan
> HDFC Bank
> Bharat Electronics
> Karur Vysya Bank
> Maruti Suzuki India
> Titan Company
> JK Cement
> Aster DM Healthcare
> ICICI Bank

Bottom-up, fundamentals-first investing

Abakkus Flexi Cap Fund represents a more traditional, fundamentals-driven approach. Led by Sanjay Doshi, the fund focuses on identifying high-quality businesses with durable competitive advantages, strong cash flows and consistent earnings growth, acquired at reasonable valuations. With an AUM of over Rs 2,500 crore, it draws on the established Abakkus investment philosophy centred on disciplined stock selection and sector diversification.

The portfolio maintains a balanced exposure across financials, industrials and select consumption themes, aiming to deliver stable, risk-adjusted returns over the long term. Rather than chasing short-term market momentum, the fund seeks to compound capital steadily across cycles.

Key Top Holdings:

> HDFC Bank Limited
> ICICI Bank Limited
> State Bank of India
> United Spirits Limited
> Larsen & Toubro Limited
> The Federal Bank Limited
> Vedanta Limited
> Oracle Financial Services Software
> Urban Company Ltd.
> NTPC Limited
> Emmvee Photovoltaic Power Limited
> Inox India Limited
> Tata Steel Limited
> Heritage Foods Limited
> Deepak Fertilizers and Petrochemicals
> Supriya Lifescience Limited

Different paths across market cycles

The three funds are likely to behave differently as market conditions evolve. Jio BlackRock’s model-driven strategy may perform best in stable or moderately volatile environments, where diversification and risk controls support consistency. Capitalmind’s momentum-led approach could outperform in strong, trending markets but may face sharper drawdowns during abrupt corrections. Abakkus, with its focus on quality and valuation discipline, is positioned to navigate downturns more steadily, though it may lag during rapid market rallies.

Together, these funds illustrate how the flexi-cap category has broadened to encompass a wide range of investment philosophies, offering investors multiple pathways to participate in India’s equity markets based on their risk appetite, time horizon and conviction in active management styles.