A new flexi-cap whose returns are 3x more than its rivals

Summary: In a space dominated by long-standing giants, a young flexi-cap fund has quietly emerged as the unexpected outperformer. But the real story isn’t just the returns, it’s the blend of aggression and patience that has defined its path so far. Add to that its high-conviction stock picks, and you begin to see why this fund is turning heads.

On November 13, Helios Flexi Cap quietly completed two years. For a fund this young, its scorecard reads impressive. In fact, its sophomore year was even better than the first.

In Year 1, the fund delivered a stellar 35.1 per cent, comfortably beating its benchmark, BSE 500 TRI, which returned 26.4 per cent. That’s a 33 per cent outperformance.

Year 2 came in a far trickier market, flat, choppy and sideways. Yet Helios Flexi Cap delivered 15.2 per cent, against the benchmark’s 9.3 per cent. That’s a 53 per cent outperformance, even stronger than Year 1.

In fact, over the last 12 months, it has been the top-performing flexi-cap fund, delivering three times the return of the category average (15.2 per cent vs 4.7 per cent). No wonder investors are pouring money into this fund, with the fund’s corpus (net assets) nearly doubling since last year.

Although it’s true that two-year numbers aren't enough to judge a fund, this fund has definitely raced out of the blocks.

Why is everyone watching Helios?

Helios’s flexi-cap scheme launched in 2023 with unusual fanfare. Because this was the comeback of Helios Capital founder, Samir Arora, a marquee name in Indian fund management. His track record at Alliance Capital in the 1990s and early 2000s still circulates in market folklore.

Given Arora’s track record, expectations from Helios Flexi Cap were exceptionally high. And its flexi-cap scheme has not disappointed yet.

So, what has helped the fund deliver in the last two-odd years? Let’s look at a few probable reasons.

1. Higher exposure to mid and small caps

At a time when the average flexi-cap fund parks around 60 per cent of its money in large-cap stocks, Helios’s flexi-cap offering sits noticeably lower at a tick over 50 per cent. Naturally, that gives it higher exposure to mid- and small-cap companies.

Now, the last 12 months haven’t been particularly kind to these lower-cap segments, but the preceding year was very strong for them, and that strength still shows up in the two-year numbers.

Look at it this way. Over the last two years, both mid and small caps have held their ground remarkably well. The small-cap index returned 15.9 per cent, almost identical to large caps (Nifty 50 TRI: 16.2 per cent). Meanwhile, mid caps went a step further, delivering a healthy 21 per cent annualised return and comfortably outpacing the large-cap universe.

This data suggests that Helios’s above-average tilt towards mid and small caps likely played a meaningful role in powering its strong performance.

2. Fully invested, less cash drag

Say you invest Rs 100 in a mutual fund, the scheme doesn’t have to invest the full amount immediately. It can keep a small portion of your money as cash, waiting for better buying opportunities.

For example, the two largest flexi-cap funds — Parag Parikh Flexi Cap and HDFC Flexi Cap — currently hold 21.5 per cent and 10.3 per cent of their investors’ money in cash. In fact, across the category, the current cash holding is 4.4 per cent. In simple terms, out of every Rs 100 invested, flexi-cap funds are keeping around Rs 4.4 idle, as of October 31, 2025.

Helios, however, takes a very different approach. Since its inception, it has kept cash holdings extremely low, and right now it holds just 0.7 per cent of investor money in cash. That means almost the entire corpus is actively invested in stocks. Because cash doesn’t earn high returns, Helios’s consistently low cash levels, combined with strong stock selection, have likely given it an edge over peers.

3. Bold, differentiated stock picks

Now let’s zoom in to see where Helios is really placing its bets.

As of October 31, 2025, the fund holds 13 stocks that appear in the portfolios of fewer than three other flexi-cap funds. That means about 12.2 per cent of investor money is parked in stocks that are either unique to Helios’s fund or shared with just one or two peers.

Here’s the breakdown:

Stocks held only by Helios Flexi Cap

4. Low turnover + high conviction

One of the most interesting things about Helios’s flexi-cap scheme is its low turnover ratio, a sign that the fund prefers conviction over constant churning.

Out of the 67 stocks currently in the portfolio, 33 stocks — nearly half of them — have been held consistently for the last 12 months. These aren’t small bets either. Together, these 33 names make up 57.39 per cent of the entire portfolio. That’s a substantial core allocation, reflecting a strategy built on patience and high conviction rather than frequent shuffling.

Dig deeper and the story gets even more compelling.

Helios has 18 stocks that have stayed in the portfolio without a single break from November 30, 2023, to October 31, 2025. These long-term “evergreen” positions now account for 37.57 per cent of the portfolio.

And the performance backs up the patience. Fourteen of these 18 stocks have beaten the Nifty 500 TRI, which returned 16.5 per cent annually, over this period.

The buy-and-hold approach isn’t random. In fact, two of the most successful flexi-cap funds in India, Parag Parikh Flexi Cap and HDFC Flexi Cap, are built on the same philosophy. Both funds have historically delivered outstanding long-term performance by buying high-quality companies and simply holding them through cycles, resisting the temptation to churn portfolios based on short-term noise.

Helios seems to be following a similar playbook: build a strong core, hold on to winners, trim only when necessary, and let compounding do the heavy lifting.

The last word

Just to reiterate, two years is not enough to judge any mutual fund. A minimum three-year runway is essential. But Helios Flexi Cap’s start has been undeniably strong.

The real question: can it deliver a ‘three-peat’? We’ll know soon enough. In about 11 months, the fund will receive its first-ever Value Research star rating, and that will be a milestone worth watching.

Want to know which flexi-cap funds are currently rated four or five stars?

Just head to our Mutual Fund Monitor page. It’s the easiest way to see how every fund stacks up. You’ll find our latest star ratings, risk grades, performance trends, and all the key numbers you need to shortlist the right schemes.

But remember that Value Research Ratings are a starting point, and not a shopping list. They help you separate the consistently strong funds from the not-so-strong ones, but they are not buy or sell recommendations. Think of them as your first filter before you dig deeper into portfolio strategy, fund manager style, and long-term track record.

Also read: An underrated and under-appreciated flexi-cap fund