Helios Flexi Cap Fund, which completed two years recently, has delivered returns far ahead of its category peers, as per Value Research.
According to Value Research’s latest analysis, the fund generated 15.2% returns in its second year, compared with 4.7% for the flexi-cap category average. Over its two-year period, the fund’s direct plan delivered 24.2% annualised returns, outperforming both the category average (14.8%) and the BSE 500 TRI benchmark (17.5%).
Value Research attributes the fund’s outperformance to portfolio positioning.
The research firm notes that Helios Flexi Cap maintains a larger tilt towards mid- and small-cap equities than most flexi-cap competitors. While the average fund in the category allocates around 60% to large caps, Helios keeps that exposure closer to 50%, with the balance invested in mid and small companies.
Value Research points out that this positioning helped the fund during a period when mid caps delivered relatively stronger gains.
The analysis also highlights the fund’s low cash levels of about 0.7%, which reduced drag relative to peers that maintain higher liquidity buffers.
Value Research further observes that the portfolio includes several differentiated, high-conviction stocks not commonly held by rival funds. More than half of the portfolio comprises stocks retained consistently for over a year, and 33 of the fund’s 67 holdings remained unchanged over the last 12 months, indicating a low-turnover strategy.
Despite the strong numbers, experts stress that the fund remains too new for a definitive assessment. Mutual funds typically require at least three years of performance history to evaluate stability across market conditions.
Experts also caution that the fund’s higher mid- and small-cap exposure increases volatility, and notes that past returns should not be seen as indicative of future outcomes.