ABSL India Flexicap Fund (IFSC)

ABSL India Flexicap Fund

Fund Snapshot

Key Features of the Fund

• Diversified flexi cap fund with large cap bias. Disciplined allocation band of 60%-75% to large-cap stocks
• Majority of the portfolio is to be invested based on our in-house Core 75 philosophy. Invests in best of breed, where at least 2 out of 4 parameters are favourable
• Remaining portfolio invested with Top-Down approach by identifying both tactical and long-term compounders
• Amongst one of the largest Flexi Cap Fund in India with a track record of wealth creation over 26 years

Investment Philosophy

Investment philosophy encompasses three primary strategies, referred to as the “3 Sleeves of Investment”. The first sleeve focuses on being benchmark aware, which involves replicating significant weights found in benchmarks to mitigate risk. The second sleeve emphasises relative return through tactical plays using a top-down approach, where active sectoral overweight and underweight positions are adopted. Additionally, there is a focus on IPO plays as a distinct strategy within this framework.

Risks vs Returns Positioning – Equity

Flexicap Fund possesses the flexibility to shift between Large, Mid, and Small Caps based on valuation considerations. Consequently, they have the potential to serve as excellent long-term compounders while maintaining relatively lower risks.

Flexi Cap – A Best-in-Breed Strategy

The Flexi Cap – Best-in-Breed Strategy outlined here focuses on picking market leaders that have already demonstrated exceptional strength in their sectors. By selecting the top three companies by market capitalisation within specific industries, the portfolio anchors itself with proven and dominant businesses. This reduces the risk of investing in untested entities and leverages stability from companies that already hold strong competitive moats.

Complementing these leaders, the strategy incorporates rising stars — fast-growing companies that have consistently outperformed their sector averages over the last three years. This blend introduces growth momentum and allows the portfolio to capture upside from companies transitioning into higher market-cap segments. The allocation across small, mid, and large caps ensures a balanced exposure rooted in both potential and resilience.

The strategy further sharpens its edge by prioritising stocks that deliver superior financial performance — higher returns on equity, stronger margins, and healthier profitability metrics than peers. This disciplined screening ensures the portfolio remains high-quality and forward-looking. Overall, Best-in-Breed investing aims to construct a winning combination of leadership, growth, and consistent performance, creating a portfolio that is better equipped to navigate market cycles while striving for strong long-term results.

Risk Factors & Suitability

This fund suits investors focused on long-term capital growth and ready to invest in Indian equities through shifting business cycles. With dynamic allocation across sectors and company sizes, it captures opportunities at different economic stages.

Both the scheme and benchmark are labelled ‘Very High Risk’, signalling sharp market movements along the way. It’s designed for growth-driven investors who can stay patient through volatility.

Anyone unsure about risk tolerance should consult a financial advisor before investing.

Best of Breed: Example

• The fund actively selects top-quality companies outside the Nifty index — aiming for more alpha than traditional large-cap-heavy portfolios.
• Current positioning shows approx. 77% exposure to Best-of-Breed stocks — highlighting strong conviction in high-potential businesses.
• Stock examples include leaders and fast-growing players such as Cholamandalam Finance, Apollo Hospitals, ICICI Lombard, Ambuja Cements, Godrej Consumer, Avenue Supermarts, and others.
• The table below reflects consistency — Core 75 allocation remains high year after year, signalling a disciplined approach in sticking with quality picks.
• Blend of sectors and company sizes = potential for stronger returns while maintaining diversification across industries.

Tap into best-of-breed businesses with AltPort’s curated access.

Sector Exposure

Top 10 Holdings

Market Capital Allocation

Key Points of the Portfolio

• Higher EPS compared to Peer Average and Benchmark
• Higher Return on Equity compared to Peer Average
• ~75-80% investment in best-of-breed stocks
• ~80% of investment is in core 75 stocks
• High Active Share compared to peers

• PAN not mandatory; No TDS
• No restriction on repatriation
• Access to best of Aditya Birla Sun Life MF/ETF schemes
• Ease of Compliance for Foreign Investors (No FPI License required)
• Eligible Investors – NRIs and Foreign Investors only
• Inbound Feeder Fund

The India Story

Strong Demographic Dividend

• The population of India is expected to grow from 1.21 billion to 1.52 billion (25.7% increase) by 2036.
• Largest ever youth population and will continue to have one of the youngest populations in the world till 2030.
• By 2030, it is estimated that around 42% of India’s population will be urbanised.

Rising Digitization and Global Competitiveness

• Volume of UPI-based digital payments have increased from 17.9 million (FY 2017) to 131,165 million (FY 2024).
• India ranks 39th on the Global Competitiveness Index 2024.
• India jumps 6 places to Rank 38 in the World Bank’s Logistics Performance Index 2023.
• The Goods and Services Tax (GST) paves the way for a common national market by integrating various indirect taxes.

Increasing Economic Influence

• India’s contribution to global growth has increased notably, i.e., from 6-8% (early 2010s) to ~16% (2023).
• Key reforms in digitalisation, infrastructure, and the business environment have bolstered India’s economic growth.
• Introduction of schemes like Atmanirbhar Bharat Abhiyan (Self-reliant India, May 2020) has strengthened sectors like infrastructure, healthcare & defence.
• India’s increasing role in global forums like the G20 highlights its growing economic and geopolitical influence.

INDIA’S CONTRIBUTION TO GLOBAL GROWTH

• Early 2010s – 7%
• Mid 2010s – 11%
• Late 2010s to Early 2020s – 15%
• 2023 – 16%
• Projected (Next 5 years) – 18%

Benefits of Investing in ABSL Flexi Cap Fund

Eligible Universe

Offers flexibility in terms of asset allocation.

Capital Appreciation

Active Management with aim for long-term capital appreciation

Market Cap Agnostic

Flexible Market Cap allocation based on the fund manager’s outlook on the market.

Relatively Lower Risk

Lower degree of risk as it is large-cap bias

Diversification

Ideal for Investors looking for diversified equity allocation.

Start Investing With AltPort Today

AltPort thinks that India’s economic expansion should be a key part of your investments, and the ABSL India Flexicap Fund lets you do that. Handled by a well-regarded asset management company in India, it invests in top Indian firms of all sizes, supported by years of good results and experienced managers. Made for global investors like you, it provides easy USD investment through GIFT City, cutting down on paperwork. If you want to invest in India’s growing innovation, consumer spending, and global role, get in touch with AltPort to start growing your wealth now.