Edelweiss Flexi Cap Fund shows 60–75% large cap bias with strong long term returns, beats Nifty 500

As equity markets remain volatile and opportunities shift across sectors and company sizes, Edelweiss Asset Management is positioning its Flexi Cap Fund as a market-cap agnostic strategy aimed at delivering long-term capital appreciation. According to its January 2026 presentation, the fund focuses on investing across large, mid and small-cap stocks without rigid allocation constraints, allowing it to adapt to changing market conditions.

The Edelweiss Flexi Cap Fund follows a diversified approach, with a typical allocation of 60–75% to large-cap stocks to provide stability, while mid- and small-cap exposure is dynamically adjusted within a 25-40% range based on available opportunities. The fund is benchmarked against the Nifty 500 TRI and had assets under management of about ₹3,105 crore as of December 31, 2025.

The fund’s strategy is built around Edelweiss AMC’s proprietary FAIR investment framework, which stands for Forensics, Acceptable Price, Investment Style Agnostic and Robustness. This framework aims to identify well-governed businesses with clean accounting practices, scalable business models and sustainable earnings potential, while avoiding a rigid bias toward either value or growth investing.

Sector exposure

Sector exposure is spread across financial services, information technology, automobiles, FMCG, healthcare and capital goods, reflecting the view that investment opportunities vary not only across sectors but also within the same sector across different market-cap segments. The fund avoids taking outsized sector bets and does not rely on macro or tactical cash calls, preferring to stay largely fully invested through market cycles.

From a portfolio construction standpoint, the fund maintains high diversification, holding over 80 stocks with the top 10 positions accounting for just over 30% of the portfolio. Active share has averaged close to 50% over the past two years, indicating meaningful deviation from the benchmark driven by bottom-up stock selection rather than index replication.

Performance

On performance, the Edelweiss Flexi Cap Fund has outperformed the Nifty 500 TRI and the category average across multiple time periods, including one-, three-, five- and ten-year horizons. SIP returns have also remained competitive, with the fund consistently ranking in the top two quartiles across rolling periods. Risk-adjusted metrics such as Sharpe and Sortino ratios indicate relatively efficient returns compared with peers over the three-year trailing period.

The fund is managed by a team led by CIO–Equities Trideep Bhattacharya, along with fund managers Ashwani Agarwalla and Raj Koradia. The management team follows a bottom-up stock-picking approach supported by a centralised research platform.

According to Edelweiss AMC, the flexi-cap structure allows investors to participate in equity markets while balancing growth opportunities with stability. While past performance may not be sustained, the fund’s emphasis on diversification, valuation discipline and governance-driven stock selection reflects a long-term approach to navigating India’s evolving equity landscape.