Taurus Flexi Cap Fund

Taurus Flexi Cap Fund has delivered modest SIP XIRR across horizons, with 3Y at 12.53% and 10Y at 11.14%, but it trails the category averages of 14.9% (3Y) and 15.99% (10Y) by a wide margin. Against the NIFTY 50, the fund shows positive alpha over 1Y (16.79%), 3Y (6.86%) and 5Y (4.91%), though alpha fades to near zero over 10Y (-0.16%) and 12Y (0.56%). Lump-sum performance is more competitive, with 3Y Fund CAGR of 11.28% versus the benchmark's 4.45%.

The fund exhibits a beta below 1 across all horizons (0.93-1.01) with downside capture consistently under 100% (82-94%), indicating it loses less than the benchmark in falling markets. It has experienced 8 drawdown events exceeding 10%, and the maximum drawdown duration of 790 days with a 287-day recovery suggests prolonged recovery periods after significant declines. Calmar ratios between 0.23 and 0.31 across horizons indicate moderate risk-adjusted returns.

The portfolio holds 37 stocks with banks as the dominant sector at 20.5%, spread across HDFC Bank (7.28%), ICICI Bank (4.41%) and Axis Bank (3.28%). A notable 7.0% allocation to Sigma Advanced Systems (Aerospace & Defense) is a concentrated single-stock bet, alongside Divi's Laboratories (5.92%) and ITC (5.82%). The top 10 holdings account for roughly 47.8% of NAV, leaving reasonable diversification across the remaining holdings.

The fund consistently underperforms category average SIP XIRR at every horizon, lagging by roughly 2.4 percentage points at 3Y (12.53% vs 14.9%) and nearly 5 points at 10Y (11.14% vs 15.99%). Calendar year returns show volatility in consistency, ranging from 38.69% in 2014 to -7.82% in 2018 and -1.83% in 2025. While the fund has protected downside well relative to the NIFTY 50, its overall return generation places it in the lower tier of the flexi cap category.

This fund may suit conservative investors who prioritize downside protection, given its sub-1 beta and downside capture below 94% across horizons. A time horizon of at least 5-7 years is advisable, as the fund has shown meaningful alpha only over shorter recent windows while long-term outperformance versus the benchmark has been minimal. Investors should have moderate risk tolerance and be aware that the high 2.63% expense ratio and category underperformance warrant comparing against lower-cost flexi cap alternatives.

• Consistent downside protection with downside capture below 94% across all horizons, including 82.17% over 1Y
• Strong recent alpha versus NIFTY 50, with 16.79% alpha over 1Y and 6.86% over 3Y
• Diversified 37-stock portfolio with balanced sector exposure beyond the 20.5% banking allocation

• SIP XIRR trails category averages at every horizon, lagging the 10Y category average by 4.85 percentage points (11.14% vs 15.99%)
• High expense ratio of 2.63% and near-zero long-term alpha (10Y alpha of -0.16%) erode net investor returns
• Concentrated 7.0% position in Sigma Advanced Systems adds single-stock risk in a niche aerospace and defense exposure