NFO Pick – (Abakkus Flexi Cap Fund)

8 Dec 2025 , 04:57 PM

WHY A FLEXI CAP FUND APPROACH  

Like a multi-cap fund that allocates across large caps, mid-caps, and small caps; flexi cap has a similar logic. However, while multi-cap funds are constrained by allocation limits, the flexi-cap offers full discretion to the fund manager. Here are some key advantages that the flexi cap fund offers. 

• By allocating across large caps, mid-caps, and small caps, the business portfolio is automatically de-risked with a delicate combination of stability and alpha.
   

• Stock market cycles can be quite subtle, especially the shifts between large caps, mid-caps, and small caps. An expert view and guidance can go a long way.
   

• A flexi-cap approach offers a wider sectoral diversification as the weight of some of the traditional heavyweights like BFSI, FMCG, and Autos automatically reduce.
   

• It allows macro-timing the markets. Typically, mid-caps and small caps outperform in an upcycle and underperform in a downcycle. Flexi cap portfolio can be adjusted aptly.  

Let us look at some of the underlying philosophies of a flexi cap fund. 

UNDERLYING LOGIC OF A FLEXI CAP FUND 

There is an interesting logic underlying flexi-cap funds from an investment perspective. 

• The flexi cap fund, by default, manages to bring about a balance between sector leaders and potential winners.
   

• The flexi-cap approach is fundamentally a bottom-up approach to investing, which is more stock-specific, and valuation driven.
   

• The combination of large caps and smaller stocks offers a combination of stability and liquidity on one side, and higher returns on the other side.
   

• Flexi cap funds can be used to play on high conviction ideas by targeting a higher allocation since there are no allocation restrictions in flexi-cap funds.
   

• It is possible to bracket investments into specific themes like business model shift, macro themes, turnaround stories, near term tailwinds, leverage plays etc. 

Let us now turn to how flexi-cap funds have performed in India. 

HOW FLEXI CAP FUNDS PERFORMED? 

Here is how flexi cap funds have performed in India across various time frames. The data is restricted to funds with a 5-year track record. 

Flexi Cap Funds  Scheme Name	Return (%) 1-Year	Return (%)  3-Years	Return (%) 5-Years	Daily AUM  (₹ in Crore)
HDFC Flexi Cap Fund	9.71	21.32	25.61	94,302.48
Quant Flexi Cap Fund	0.31	16.07	24.85	6,745.14
Bank of India Flexi Cap Fund	-3.12	21.33	23.61	2,227.65
JM Flexi Cap Fund	-6.91	20.86	22.44	5,903.95
Parag Parikh Flexi Cap Fund	8.07	21.48	21.42	1,30,440.19
Franklin India Flexi Cap Fund	2.29	17.64	21.14	19,878.87
Edelweiss Flexi Cap Fund	2.69	19.40	21.01	3,054.02
HSBC Flexi Cap Fund	-0.52	19.14	19.11	5,184.41
Union Flexi Cap Fund	2.37	15.19	18.17	2,392.29
Data Source: AMFI

In India, there are 43 flexi cap funds, but we have only considered 24 funds for our analysis with a 5-year track record. The total AUM of these 43 funds stands at ₹5,44,524 Crore. Out of these the 24 funds considered for the purpose of our rankings, had a combined AUM of ₹4,72,957 Crore or 86.9% of the overall AUM of flexi-cap funds. The top 10 funds ranked above had a combined AUM of ₹2,94,810 Crore or 54.1% of overall AUM of all flexi-cap funds available in India. 

In last 1-year, returns of the top-10 funds averaged 2.28%, while the broad sample of 24 funds had average returns of 2.27%. Over a 3-year period, returns of the top-10 funds averaged 18.96% CAGR, while the broad sample of 24 funds had average returns of 16.68% CAGR. Over a 5-year period, returns of the top-10 funds averaged 21.54% CAGR, while the broad sample of 24 funds had average returns of 18.40% CAGR. 

GLANCE AT ABAKKUS FLEXI CAP FUND 

Here are key details of the Abakkus Flexi Cap Fund. 

• NFO opens on December 08, 2025 and closes on December 22, 2025. It is an open-ended active equity fund allocating the corpus across large caps, mid-caps, and small caps at the discretion of the fund manager. This enables better alpha seeking.
   

• On the risk-o-meter, Abakkus Flexi Cap Fund is classified as “Very High Risk,” due to its substantial exposure to equities across large caps, mid-caps, and small caps. There is also the risk of asset allocation across capitalisation, which is largely discretionary.
   

• Abakkus Flexi Cap Fund is best suited to investors looking at capital appreciation in the long run, with a calibrated combination of large caps for stability and mid & small caps for alpha. A long-term view is essential to make the best of the flexi-cap concept.
   

• Exit load will be applicable in 3 stages. Firstly, there is no exit load for redeeming up to 10% of the holdings. Secondly, if holdings beyond 10% of holdings are held for less than 3 months from the date of allotment, then exit load of 1% on redemption value is levied. If the fund is redeemed after 3 months, there is no exit load.
   

• Minimum application amount in NFO is ₹500 and in multiples of ₹1 thereafter. Additional purchases can be done with minimum ₹100. Investors can look to create SIP structures to get the best benefits of rupee cost averaging. SIPs with minimum 6 instalments can be done for a minimum amount of ₹500.
   

• It will offer Regular Plans and Direct plans to investors. The fund will also offer the growth and the IDCW option to investors. Designated fund manager for the scheme is Sanjay Doshi. Fund performance will be benchmarked to the BSE 500 Index TRI.
   

• The fund will invest its corpus predominantly in equities (65%-100%), debt (0-35%), REITs/INVITs (0-10%), and MF Units (0-5%). The taxation of the fund will be as an equity fund, due to minimum 65% exposure to equities at all times. 

Let us finally look at the taxation aspect. 

TAX TREATMENT OF RETURNS ON THE FUND 

Abakkus Flexi Cap Fund will be classified as an equity fund for income tax purposes. Hence, dividends will be taxed at the incremental rate applicable. Short term capital gains – STCG (up to 12 months) will be taxed at 20.8% (including 4% cess). Long term capital Gains – LTCG (beyond 12 months), will be taxed at 12.5% after factoring in a base annual exemption limit of ₹1,25,000. There will be no indexation benefits available! 

One of the hidden benefits of investing in a flexi-cap fund is that that the allocation and churn across large caps, mid-caps, and small caps will be done in a tax neutral manner and without the investor having to make a DIY decision. That is the hidden tax benefit in flexi-cap funds.