The Wealth Company Flexi Cap Fund

The fund has delivered a 1Y SIP XIRR of -4.11%, significantly underperforming the category average SIP XIRR of 9.6% for the same period. However, on a lump-sum basis it has consistently beaten the NIFTY 50 across all time windows, with a 1Y alpha of 5.66% (fund CAGR of -4.77% vs benchmark CAGR of -11.01%). Calendar year returns show weakness in 2026 at -6.93%, following a modest 2.22% gain in 2025.

The fund exhibits a beta of 0.97 with the NIFTY 50, indicating market-like volatility, while its downside capture of 86.23% versus upside capture of 93.28% suggests it loses less in declines than it gains in rallies. Maximum drawdown is modest at -0.16% with a duration of 83 days, though recovery has not yet occurred. The positive alpha across all windows (5.66% at 1Y, tapering to 0.20% at 15Y) indicates consistent but diminishing outperformance over longer horizons.

The portfolio holds 48 stocks with the top 10 accounting for roughly 32.7% of NAV, led by ICICI Bank at 5.34% and MCX at 4.0%. Sector allocation is diversified across Auto Components (13.9%), Capital Markets (11.1%), and Banks (10.4%), with meaningful exposure to autos and consumer durables. The holdings mix includes mid-sized names like Ather Energy, Thangamayil Jewellery, and Ramkrishna Forgings, suggesting a tilt away from mega-cap concentration.

The fund's 1Y SIP XIRR of -4.11% trails the category average of 9.6% by a wide margin, indicating weak recent SIP performance versus flexi cap peers. Its lump-sum benchmark outperformance is encouraging, but the absence of longer-tenure XIRR data makes full category comparison difficult. The shrinking alpha over longer windows (from 5.66% at 1Y to 0.20% at 15Y) suggests outperformance has been concentrated in the recent period.

This fund suits investors with a high risk tolerance and a horizon of at least 5-7 years, given the negative recent returns and the need for time to let the active strategy play out. It may appeal to those seeking market-plus returns with slightly lower downside capture than the index. Investors should be comfortable with interim drawdowns and underperformance versus category peers in the short term.

• Consistent positive alpha versus NIFTY 50 across all measured windows, with 5.66% alpha over 1Y
• Favorable capture asymmetry: downside capture of 86.23% versus upside capture of 93.28%, indicating loss mitigation in weak markets
• Low expense ratio of 0.39% for a direct plan, keeping costs competitive for an actively managed flexi cap fund

• 1Y SIP XIRR of -4.11% badly lags the category average of 9.6%, signaling weak recent SIP outcomes versus peers
• Alpha has steadily compressed over longer horizons, from 5.66% at 1Y to just 0.20% at 15Y, raising questions about sustained outperformance