This flexi-cap fund just beat the Nifty 500 and peers: Here’s how it did it

A two-year-old mutual fund is quietly crushing the market. Helios Flexicap Fund has delivered a stunning 25.9 percent compounded annual return since inception, beating the category average and leaving many older funds behind in India’s nearly six-trillion-rupee flexi-cap space.

Launched in November 2023, Helios Flexicap Fund has quickly built assets of over ₹4,361 crore as of September 2025. Backed by Helios Mutual Fund, an arm of Singapore-based Helios Capital founded by veteran investor Samir Arora, the fund is actively managed and invests across largecap, midcap, and smallcap stocks depending on market conditions and valuations.

The fund is co-managed by Ashok Bahl and Pratik Singh. Bahl, the Chief Investment Officer, has over 33 years of experience and has been with the Helios Group since its early days. Singh brings a decade of equity research and fund management experience.

What sets Helios Flexicap apart is its focused but flexible strategy. While it maintains a largecap tilt with 49 percent of its portfolio, the fund uses a rigorous "elimination investing" process to filter out companies with weak governance, questionable accounting, or high disruption risk. Only companies that meet strict criteria for opportunity size, industry dynamics, management strength, and valuation make the cut.

As of September 2025, the fund holds 66 stocks with major positions in HDFC Bank, Eternal, and Adani Ports. Financials, banking, and auto form the top three sectors, making up nearly 40 percent of total assets. The fund is nearly fully invested, with only 1.1 percent in cash.

Despite being a flexi-cap fund, Helios has not aggressively churned its portfolio. Its turnover ratio has ranged between 42 to 83 percent over the past year, indicating conviction in its holdings. The fund also has the flexibility to invest up to 35 percent in debt and foreign securities, and up to 10 percent in REITs and InvITs.

Short-term performance is equally solid. The fund returned 13.1 percent over the past year and 4.4 percent in the last six months, beating both the category average and the Nifty 500 TRI. Since inception, a ₹10,000 investment would have grown to ₹12,594 by October 31, 2025.

For investors seeking a high-conviction, low-noise equity fund with flexibility across market caps and sectors, Helios Flexicap Fund is emerging as a serious contender.