After a period of prolonged volatility over the past 16 months with many pockets of mid and small-caps especially facing the rough end of the markets, some semblance of order seems to be returning for domestic investors.

With the India-US trade deal agreement in place and penal tariffs removed, closely following the FTA with the European Union late in January, there is a lot more macro certainty.

Controlled inflation, reasonably low interest rates, revival in domestic demand, a stable Budget and recovery in corporate earnings signal some positivity, though valuations still may not be in the inexpensive zone; that said, some segments have valuation comfort after the correction over the past year-and-a-half.

A flexicap fund that straddles market caps with a bias for bluechips may be suited for investors from a long-term perspective.

In this regard, Whiteoak Capital Flexicap fund is suitable for investors with a reasonable risk appetite and a horizon of at least five-plus years. Taking the SIP route to investing would help in averaging costs and lowering volatility.

Healthy performance

Though Whiteoak Capital Flexicap has only a track record of about 3.5 years, it has proven itself as an above-average performer in the category.

The past 3-odd years have seen  geopolitical escalations, trade tariffs, supply chain disruptions, wars and AI-led disruption. Funds that managed to wade through these challenges and correcting broader markets, and yet deliver sturdy returns, need closer attention.

When point-to-point returns are considered over the past one, two and three-year periods, the fund has outperformed the Nifty 500 TRI. The fund’s three-year CAGR stands at 21.4 per cent, while the Nifty 500 TRI delivered 17.6 per cent in the same period.

In rolling 1-year returns from August 2022 to February 2026, the fund has outperformed the Nifty 500 TRI for over 95 per cent of the time.

The mean returns of the fund over aforementioned rolling period and timeframe is 23.3 per cent, while the Nifty 500 TRI gave 18.6 per cent.

A monthly SIP over the past three years in the Whiteoak Capital Flexicap fund would have given 15.6 per cent (XIRR) returns. A similar SIP in the Nifty 500 TRI would have delivered 12.6 per cent.

The fund has an upside capture ratio of 125.4, indicating that its NAV rises much more than the benchmark during rallies. It has a downside capture ratio of 93.8, suggesting that the NAV falls much less than the benchmark during corrections. A score of 100 indicates that a fund performs in line with its benchmark. This inference is based on returns between February 2023 and February 2026. Other key risk measures such as Jensen’s alpha, Sortino ratio and Sharpe ratio are all healthy.

All data cited pertain to the direct plan of the fund.

Deep diversification

Whiteoak Capital Flexicap maintains an extremely well-diversified portfolio with fairly diffused individual stock holdings. The number of stocks in the portfolio has always been well over a hundred. Its December month portfolio shows 131 stocks being held.

Barring a couple of companies, individual shares account for less than 3 per cent even among the top 10-20 holdings.

In terms of market segments, the fund has always been biased towards large-cap stocks. These bluechips have generally made up about 55-58 per cent of the overall portfolio.

Mid and small-cap stocks have accounted for 38-45 per cent of the portfolio, with a bias towards the latter market cap segment.

The large-cap heaviness gives the portfolio the needed stability. Given that the stock holdings are highly diffused, a high proportion of mid and small-cap holdings still does not substantially increase the risks of the overall portfolio.

Banking and finance stocks have been the top sector holdings for the fund across timelines. This exposure has helped the fund outperform, as the segment was among the very few in the market that outperformed in the past 18 months.

Interestingly, IT – an underperforming segment in the last 2-3 years – has been among the top holdings of the company over the years. However, the diffused holdings and exposure to mid-cap IT stocks (some of which have done relatively better) have helped the fund remain relatively insulated to the churn in the segment.

In recent portfolios, the fund has reduced exposure to consumer durables and retailing segments due to the structural challenges in these sectors and their relatively lackadaisical market performance.

The fund has upped stakes in automobiles, pharmaceuticals and telecom services firms, all of which are expected to do well for the foreseeable future.

Overall, Whiteoak Capital Flexicap fund is a good addition to the satellite portion of an investor’s portfolio as a diversifier.

Published on February 14, 2026