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.
