Flexi-caps show greater resilience than large-cap funds

Published: Apr 9, 2016

The financial markets generate a lot of number on a per second basis. There are people who have made it a profession to convert this information into trends, buy-sell signals, charts and pivot tables. Over the last 18 years of financial journalism, I have realised that every number has a story to tell. And these numbers as a trend normally never lie. I am forever looking for these trends.

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Image: Getty Images
30.3% was the fall in the Nifty PSU Bank index in the last year. In comparison, the Nifty Bank index fell just 13.7 percent in the same period

The massive pile of  NPAs in the books of state-run banks has weighed heavily on their stocks. The BSE Finance index, that comprises banking and NBFC stocks, fell 28 percent in the last one year.

Interestingly, flexi-cap funds—that invest in small-, mid- and large-cap companies—managed to outperform large-cap funds, despite a higher average exposure to the financial sector. The table compares the funds with the highest exposure to finance stocks and their returns.

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(This story appears in the 15 April, 2016 issue of Forbes India. You can buy our tablet version from Magzter.com. To visit our Archives, click here.)

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