Flexibility is built into the name of a flexi cap fund. What matters is how actively that flexibility is used.
As Bajaj Finserv Flexi Cap Fund completes three years since its inception on August 14, 2026, its allocation history offers a useful view of that flexibility in action, subject to minimum 65% investment in equity and equity related instruments. The fund has meaningfully shifted its allocation across market caps and sectors in response to market conditions and growth opportunities identified through its megatrend-led investment strategy.
Megatrends are broad, long-term developments that can reshape how people live, how businesses operate and where new opportunities emerge. They help the fund identify businesses with the potential to remain relevant and grow over several years.
The fund’s three-year performance provides an encouraging indication of how this approach has worked. As of August 13, 2026, the Regular Growth plan delivered 16.59%, annualised returns since inception, while the Direct Growth plan delivered 18.21%, compared with 12.74% for the benchmark, BSE 500 TRI over the same period. The fund outperformed the benchmark in the past year as well, with the Regular Growth plan delivering 9.85% and the Direct Growth plan delivering 11.26% against the benchmark’s 4.93%
Source: Internal Analysis, MFI360 and Bloomberg. Data as of August 13, 2026. Past performance may or may not be sustained in future.
Moving across market caps
The fund has put the flexibility in its name to work through meaningful changes in its mix of large, mid and small cap stocks.
One of the clearest shifts has been with regard to the fund’s large cap exposure. Large caps accounted for 52.53% on November 30, 2023, and rose to 60.72% by March 31, 2025 – the highest level recorded during the period. The allocation then came down to 44.17% by July 31, 2026.
Mid caps followed a different path. Their share fell from 18.97% on November 30, 2023, to 10.51% by March 31, 2024. It then rose sharply, reaching a period high of 25.16% on July 31, 2025. As of July 31, 2026, mid caps made up 23.02% of the portfolio.
Small cap exposure also changed considerably. It began at 24.39% on November 30, 2023, and peaked at 32.99% on February 29, 2024. It later fell to a period low of 19.34% on February 28, 2025, before rising to 29.33% by July 31, 2026.
The fund did not remain tied to one market cap mix. Its allocation changed as the managers’ assessment of opportunities, company prospects and valuations evolved.
Source: ACE MF and Internal. Above numbers are rebased to 100%. Portfolio will be managed as per stated Investment objective, investment strategy & asset allocation in the Scheme Information Document (SID) and is subject to the changes within provisions of SID of the Scheme. To download the complete portfolio, please visit https://www.bajajamc.com/downloads
Past performance may or may not be sustained in future. Data on July 31, 2026.
Sector weights moved too
The movement was not limited to company size. Financial services fell to 17.6% of the portfolio in August 2024, rose to 36.8% by June 2025 and was reduced to 23.03% by July 2026.
Consumer discretionary followed a different path. Its weight declined from 29% in November 2023 to 14.8% in February 2025, before rising to 30.64% in July 2026.
Industrials also moved through a wide range. The sector accounted for 17.8% of the portfolio in May 2024, dropped to 5.5% by February 2025 and returned to 17.41% in May 2026. Healthcare, fast-moving consumer goods and information technology recorded meaningful changes as well.
These shifts can change what drives the portfolio at different points. Financial services provide exposure to credit growth and financialisation. Consumer discretionary is more closely linked to household spending and changing lifestyles. Industrials can benefit from manufacturing, infrastructure and investment activity.
Source: ACE MF and Internal. Above numbers are rebased to 100%. Portfolio will be managed as per stated Investment objective, investment strategy & asset allocation in the Scheme Information Document (SID) and is subject to the changes within provisions of SID of the Scheme. To download the complete portfolio, please visit https://www.bajajamc.com/downloads
Past performance may or may not be sustained in future. Data on July 31, 2026. Please note that the reference to any sector/industry is provided for illustrative purposes only. This should not be construed as a research report or a recommendation to buy or sell any security of any sector/industry.
How this supports the megatrends strategy
A megatrend may remain relevant for years, although the investment opportunities linked to it can change along the way. Different sectors may benefit at different stages. A company’s prospects can strengthen or weaken, while its valuation, the price investors are willing to pay relative to the business, can become more or less favourable.
The fund identifies these long-term developments through its TRENDS framework:
Technological: Changes such as digitalisation, automation and artificial intelligence that can reshape businesses and industries.
Regulatory: Government policies and regulatory changes that can create new opportunities or alter how an industry operates.
Economic: Developments such as formalisation, infrastructure spending and changing global supply chains that influence where money is spent and invested.
Nature: The move towards cleaner energy, mobility and production, along with a greater focus on environmental sustainability.
Demographic: Changes in the size, age, income and needs of the population that can shape demand over many years.
Social: Evolving habits and preferences, including the growing importance of convenience, health, quality and experiences.
Once a trend and the sectors likely to benefit have been identified, the fund studies individual companies. It asks whether a company is a genuine beneficiary of the trend, whether it can turn that opportunity into sales, cash flow and profit, whether its management and finances are sound, and whether the share is available at a suitable valuation.
In simple terms, TRENDS helps the fund decide where to look, company research and valuation help determine which stocks enter the portfolio and in what weightage, and market opportunities inform the portfolio spread between market caps and sectors.
Three years of flexibility in practice
As the data shows, Bajaj Finserv Flexi Cap Fund has made active use of its mandate. This is also reflected in the fund’s high active share, which measures the portfolio’s distinctiveness from the fund’s benchmark. As on July 31, 2026, the fund had an active share of 70%.
Three years on, flexibility is not merely part of the fund’s category – it has been a visible part of how the portfolio has been managed.
Mutual Fund investments are subject to market risks, read all scheme related documents carefully.
For the performance of other schemes managed by the Fund Managers which have completed 1 year or more than 1 year since inception, please visit https://www.bajajamc.com/downloads?factsheet and download the latest Factsheet or click here.
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