Capitalmind Flexi Cap Fund relies on a quantitative core with a human in the loop. We follow a rules-based framework that scans the entire listed universe. When momentum is strong we lean into it. When conditions change we shift toward other factors such as low risk, quality, or value if they offer a better risk-reward trade-off. As a flexi-cap fund we can allocate across large, mid, and small-cap stocks in any sector. In rough markets we may add hedges that help soften volatility.

The fund suits investors who have a horizon of at least ten years. Also, see if these things resonate with your investing style.

• You may (or may not) already own other equity investments, and you want meaningful diversification.
• You understand how quantitative strategies differ from traditional bottom-up approaches.
• You keep realistic expectations for long-term returns. Most importantly, you are willing to stay invested through the inevitable ups and downs that create those returns.

All investments are not for everyone. You should not invest if:

• You check your portfolio value every day.
• You search for “best performing funds this year” every April.
• Last year’s return controls this year’s risk appetite.
• You think long term means one or two years.
• Your expectations for long-term returns are far above historical averages.

The fund is agnostic to market cap and sector. It is not a thematic fund and does not allocate based on any single theme. Back tests show the portfolio usually stays well diversified across market caps and sectors.

We avoid predicting returns. Over the long run equity results follow economic growth and corporate profits. Our benchmark is the NSE 500, the market-cap-weighted index of India’s largest 500 companies. As an active fund we aim to deliver higher risk-adjusted returns than this benchmark. There will still be stretches of one, three, or even five years when the fund trails the benchmark.

Volatility is inherent to equity markets and a source of their long-term return. We manage it in two ways. First, we switch between our primary factor, momentum, and alternate factors such as low risk, quality, or value based on quantitative signals. Second, we hedge part of the exposure when markets are weak. These rules have been tested on fifteen years of data. They aim to reduce drawdowns, not remove them. Over a full cycle we expect declines similar to the benchmark while seeking better risk-adjusted returns.