Union Flexi Cap Fund

Union Flexi Cap Fund has delivered consistent alpha over NIFTY 50 across all time horizons, with alpha ranging from 2.45% (15Y) to 7.28% (1Y), while consistently capturing less downside (85-90%) than upside (91-99%). Its primary SIP XIRR stands at 16.17% over 5Y, slightly ahead of the category average of 16.08%, though it trails the category over 10Y (15.41% vs 15.96%) and 12Y (14.46% vs 15.16%). Lump-sum rolling returns also show the fund outperforming NIFTY 50's point-to-point CAGR across most windows, such as 13.86% vs 10.33% over 10Y.

The fund is slightly less volatile than the benchmark, with betas between 0.90 and 0.98 and a maximum drawdown of just -0.35% over 33 days, indicating strong capital protection during market declines. Its consistently low downside capture (85.41% to 89.42%) versus near-100% upside capture in the 1Y window reflects a defensive tilt that cushions losses in falling markets. Calmar ratios remain stable around 0.39-0.43 across durations, suggesting steady risk-adjusted returns, though 1Y XIRR of 9.77% reflects the weak recent market as seen in the fund's -3.32% lump-sum CAGR vs the benchmark's -10.92%.

The portfolio is anchored in financials, with Banks forming the largest sector exposure at 20.5% and the top four holdings all being banks (ICICI Bank 6.32%, HDFC Bank 4.51%, Axis Bank 3.65%, SBI 3.35%), implying roughly 17.8% in the top four names. Banks and Finance together account for 26.4%, creating meaningful financials concentration, while Pharmaceuticals (10.1%) and Telecom add diversification. With 71 total holdings and no single stock above 6.32%, the fund maintains reasonable single-stock diversification beyond its financials overweight.

The fund performs in line with or slightly ahead of category peers in the medium term, beating the average SIP XIRR over 1Y (9.77% vs 9.47%), 3Y (14.68% vs 14.72%, marginally behind), and 5Y (16.17% vs 16.08%). However, it has lagged the category over longer horizons, trailing by 0.55% over 10Y and 0.70% over 12Y on SIP XIRR. This suggests it is a middling-to-above-average performer in the near term but not a top-quartile long-term category leader.

The fund suits investors seeking market participation with a defensive bias, as its low downside capture and beta below 1 indicate it should fall less than the index in corrections. It is appropriate for a horizon of at least 5-7 years, where its SIP XIRR has compounded in the mid-teens (16.17% over 5Y). Investors with moderate risk tolerance comfortable with a heavy financials allocation should find it suitable, but those seeking maximum long-term category outperformance may want to compare alternatives.

• Consistent positive alpha versus NIFTY 50 across all measured horizons from 1Y to 15Y, ranging from 2.45% to 7.28%
• Strong downside protection with downside capture of 85-90% and beta below 1, cushioning losses in market declines
• Diversified 71-stock portfolio with reasonable 5Y SIP XIRR of 16.17%, marginally ahead of the category average

• Lags the category average SIP XIRR over longer horizons, trailing by 0.55% over 10Y (15.41% vs 15.96%) and 0.70% over 12Y (14.46% vs 15.16%)
• Heavy concentration in financials, with Banks at 20.5% and the top four holdings all being banks, exposing the fund to sector-specific risk
• Recent performance is weak, with a 1Y lump-sum CAGR of -3.32% and calendar 2026 return of -2.84%