Edelweiss Flexi Cap Fund: Six-month portfolio changes (January–June 2026)
| Parameter | January 2026 | June 2026 | 6-Month Change |
|---|---|---|---|
| Holdings | 81 | 91 | +10 stocks |
| Total Buys | — | 21 (cumulative) | 21 additions |
| Complete Exits | — | 12 (cumulative) | 12 exits |
| Portfolio Turnover | — | 19% | Moderate churn |
| Top 5 Concentration | 21% | 22% | +1 percentage point |
| Biggest Weight Gainer | — | ICICI Bank | +1.1 percentage points |
| Biggest Weight Loser | — | Infosys | -2.0 percentage points |
Banking emerges as the biggest conviction
The most notable shift during the period was a higher allocation to banking stocks. The sector’s portfolio weight increased from 22.7% in January to 24.3% in June, making it the largest sectoral exposure in the fund.
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Among individual stocks, ICICI Bank emerged as the fund’s biggest conviction. Its portfolio weight rose from 4.9% to 6.0%, making it the largest holding by June. HDFC Bank also remained a top position with a weight of 5.7%, while Larsen & Toubro, Reliance Industries and NTPC continued to feature among the fund’s largest investments.
The fund also increased exposure to Axis Bank, whose weight nearly doubled during the six months.
Sector allocation changes
| Sector | Jan 2026 | Jun 2026 | Change (ppt) |
|---|---|---|---|
| Banks | 22.7% | 24.3% | +1.6 |
| Finance | 9.2% | 7.1% | -2.1 |
| Automobiles | 4.4% | 5.1% | +0.7 |
| Pharmaceuticals & Biotech | 3.8% | 5.0% | +1.2 |
| Construction | 3.0% | 4.1% | +1.1 |
| Electrical Equipment | 1.1% | 4.0% | +2.9 |
| Petroleum Products | 4.2% | 3.8% | -0.4 |
| Consumer Durables | 3.3% | 3.5% | +0.2 |
| IT – Software | 7.8% | 3.5% | -4.3 |
| Power | 2.5% | 3.5% | +1.0 |
Capital expenditure theme gains prominence
Beyond financials, the portfolio reflects a clear tilt towards India’s capital expenditure and manufacturing story.
Electrical Equipment recorded the sharpest increase in sector allocation, rising 2.9 percentage points over the six months. Construction gained 1.1 percentage points, while Power increased by 1 percentage point, suggesting greater exposure to companies expected to benefit from infrastructure spending, power demand and industrial investment.
Healthcare was another area of focus. Allocation to Pharmaceuticals & Biotechnology increased by 1.2 percentage points, indicating a renewed preference for defensive sectors alongside cyclical growth themes.
IT sees the biggest reduction
The biggest reduction came in IT-Software, whose portfolio weight declined by 4.3 percentage points during the review period.
The fund also reduced its allocation to the broader Finance sector by 2.1 percentage points, signalling a shift away from select non-bank financial names while simultaneously increasing exposure to commercial banks.
At the stock level, Infosys witnessed the sharpest reduction in portfolio weight, declining by 2 percentage points, making it the biggest weight loser during the period.
Active yet disciplined portfolio management
Portfolio activity remained measured despite multiple changes. The fund recorded 21 total buys against 12 complete exits, while the number of holdings expanded by ten stocks.
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Among notable additions across the six months were companies such as Ashok Leyland, Larsen & Toubro, Torrent Pharma, Axis Bank and ICICI Bank, while positions in stocks including Infosys, Oil India, Muthoot Finance and Trent were trimmed or exited over different months.
Top holdings: Biggest changes
| Stock | Jan Weight | Jun Weight | Change |
|---|---|---|---|
| ICICI Bank | 4.9% | 6.0% | +1.1 ppt |
| HDFC Bank | 6.5% | 5.7% | -0.8 ppt |
| Larsen & Toubro | 3.0% | 4.1% | +1.1 ppt |
| Reliance Industries | 3.5% | 3.5% | No change |
| NTPC | 2.5% | 3.0% | +0.5 ppt |
| State Bank of India | 3.2% | 2.6% | -0.6 ppt |
| Axis Bank | 0.9% | 1.9% | +1.0 ppt |
| Bharti Airtel | 2.4% | 1.8% | -0.6 ppt |
| Mahindra & Mahindra | 1.9% | 1.8% | -0.1 ppt |
Long-term performance
The portfolio adjustments have coincided with consistent medium- and long-term outperformance.
According to the data, the Edelweiss Flexi Cap Fund generated a one-year CAGR of 6.1%, compared with 3.4% for the Nifty 500 TRI, delivering an alpha of 2.7 percentage points. Over three years, the fund outperformed the benchmark by 3.4 percentage points, while over five years, it generated 2 percentage points of excess returns.
For SIP investors, the fund has also maintained superior XIRR across longer time frames, suggesting that its stock selection and sector rotation strategy has translated into sustained wealth creation rather than short-term gains alone.
With larger allocations to banks and infrastructure-linked sectors and reduced exposure to IT, the fund’s recent portfolio changes reflect a positioning aligned with domestic growth and capital expenditure themes that continue to dominate the broader market outlook.
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Disclaimer: Business Today provides market and personal news for informational purposes only and should not be construed as investment advice. All mutual fund investments are subject to market risks. Readers are encouraged to consult with a qualified financial advisor before making any investment decisions.
