Helios Flexicap Fund Shows Strong Returns with Unique Investment Strategy

Helios Flexicap Fund, an open-ended dynamic equity scheme from Helios Mutual Fund, has captured investor attention with its impressive returns and distinct investment approach. Launched in November 2013 by Helios Capital Management Pte. Ltd., a Singapore-based asset management company focused on India, the fund aims for long-term capital appreciation by investing predominantly in equity and equity-related instruments across market capitalisations. It dynamically shifts between large, mid, and small-cap stocks while maintaining at least 65% allocation to equities. The fund's Assets Under Management (AUM) have grown to over Rs 43 billion as of September 2025. The investment strategy includes a unique 'elimination investing process' which meticulously filters potential investments based on eight factors like opportunity size, industry dynamics, management quality, and valuations, aiming to avoid poor performers. The fund also invests up to 35% in foreign securities for diversification.

As of September 2025, the fund held 66 stocks, with a largecap bias (49% largecaps, 27% midcaps, 18% smallcaps). Its top holdings include HDFC Bank, Eternal, and Adani Ports. The finance, banking, and auto sectors form the top three exposures.

**Impact** This news is important for Indian mutual fund investors, particularly those seeking diversified equity exposure with the potential for high returns. The fund's performance suggests a potentially successful strategy that could influence other fund houses. Its strong risk-adjusted returns, despite high volatility, highlight the effectiveness of its approach for a specific investor profile. However, investors should be aware of the 'very high risk' classification. Rating: 7/10

**Definitions of Difficult Terms** * **Flexi cap fund**: A type of mutual fund that can invest in companies of all sizes – large, mid, and small-cap – without any restrictions on allocation. Fund managers have the flexibility to shift investments based on market conditions. * **Assets Under Management (AUM)**: The total market value of assets that a fund manages. Higher AUM generally indicates a fund's popularity and scale. * **CAGR (Compounded Annual Growth Rate)**: The mean annual growth rate of an investment over a specified period of time longer than one year. It represents the annualized return. * **Alpha**: A measure of an investment's performance compared to a benchmark index. Positive alpha means the fund has outperformed the benchmark. * **Risk-o-meter**: A tool used by mutual fund houses to indicate the risk level associated with a particular scheme, ranging from low to very high. * **Standard Deviation**: A statistical measure that quantifies the amount of variation or dispersion of a set of data values. In finance, it measures the volatility of an investment's returns. * **Sharpe Ratio**: A measure of risk-adjusted return. It indicates how much excess return an investment portfolio has generated per unit of risk taken, compared to a risk-free asset. * **Sortino Ratio**: Similar to the Sharpe Ratio, but it only considers downside volatility (risk of losses) when calculating risk-adjusted returns. It's a more refined measure for investors concerned about losses. * **Elimination Investing Process**: A stock selection methodology where potential investments are screened out based on a predefined set of negative criteria or 'red flags' before considering others for investment.