What is Flexicap PMS?
Flexicap PMS strategies have no market-cap restrictions — the portfolio manager freely allocates to large, mid, or small cap stocks based on where the best risk-reward opportunities exist. This eliminates the constraint of fixed market-cap mandates and allows true opportunistic investing across the market.
- No Market Cap Constraint: Full flexibility to invest anywhere in the market
- Dynamic Reallocation: Shift to large caps in bear markets; small caps in bull
- Best-of-Breed: Pick the best company in each theme regardless of market cap
- Lower Benchmark Risk: No pressure to hold benchmark constituents
- Active Risk Management: Reduce small-cap exposure when liquidity tightens
Flexicap Strategy Styles
Different approaches within the flexicap universe:
- Quality Growth: Focus on businesses with high ROE, ROCE, and earnings visibility
- GARP (Growth at Reasonable Price): Balance between growth and valuation
- Value Flexicap: Find undervalued companies across market caps
- Momentum Flexicap: Follow price and earnings momentum signals
- Contrarian: Invest in sectors/stocks that are temporarily out of favour