The Abakkus Flexi Cap Fund, backed by veteran investor Sunil Singhania, significantly shifted its positioning in March, increasing its exposure to some of India’s largest corporate entities. According to the latest monthly portfolio disclosure from Abakkus Mutual Fund, the fund raised its stakes in HDFC Bank, Reliance Industries Ltd (RIL), and 28 other equities, signaling a strategic move to balance stability with growth across various market capitalizations.
The most notable additions were in the banking and energy sectors. The fund added nearly 2 lakh shares of HDFC Bank, bringing its total holding to 20 lakh shares in March, up from 18 lakh in February. Similarly, the fund increased its position in Reliance Industries by 75,000 shares, ending the month with a total of 10 lakh shares of the conglomerate.
These moves come as the fund continues to execute a “conviction-driven” strategy, blending established market leaders with emerging winners. With an assets under management (AUM) of Rs 3,089 crore as of March 31, 2026, the fund is operating under a mandate to generate long-term capital appreciation through a diversified mix of large, mid, and small-cap securities.
Strategic Shifts in Sector Allocation
Beyond the heavyweights, the fund showed a strong appetite for industrial and financial stocks. The most aggressive addition in terms of volume was Tata Steel, where the fund added 9 lakh shares. This was followed by a net addition of 5 lakh shares in Bank of Baroda, further cementing the fund’s bullish stance on the financial services sector.
The fund similarly increased its stake in Urban Company, adding approximately 4 lakh shares to bring its total count to 45 lakh. Other notable additions included 2.50 lakh shares each in The Federal Bank and Emmvee Photovoltaic Power. These diversified bets suggest a focus on both traditional banking and the evolving energy landscape.
According to the portfolio data, the fund also bolstered its positions in several other key companies, including:
- Aether Industries and Inox India
- Bajaj Auto and Vedanta
- ICICI Bank and ICICI Prudential AMC
- Oracle Financial Services Software and State Bank of India
New Entries and Strategic Exits
While the fund was active in increasing existing stakes, it also refreshed its portfolio with new entries and decisive exits. Mahindra & Mahindra (M&M) entered the portfolio as a new addition in March, with the fund acquiring 2.35 lakh shares. This move aligns with the fund’s stated positive outlook on the industrials and consumer discretionary sectors.
Conversely, the fund decided to completely exit its position in Bharat Petroleum Corporation (BPCL). The fund sold 16.01 lakh shares in March, removing the energy giant from its holdings entirely. This exit highlights the fund’s willingness to prune positions to maintain what it describes as “mindful valuation discipline.”
| Company | Action | Shares Added/Removed | Total Holding (March) |
|---|---|---|---|
| HDFC Bank | Increase | ~2 Lakh | 20 Lakh |
| Reliance Industries | Increase | 75,000 | 10 Lakh |
| Tata Steel | Increase | 9 Lakh | Not Specified |
| Mahindra & Mahindra | New Entry | 2.35 Lakh | 2.35 Lakh |
| BPCL | Full Exit | (16.01 Lakh) | 0 |
The Philosophy Behind the Portfolio
Sanjay Doshi, Head of Investments and Research at the fund house, emphasized that the Abakkus Flexi Cap Fund is designed to capture growth opportunities across the entire market spectrum. Doshi stated that the portfolio maintains a high active share through conviction-driven positioning, balancing “leaders and emerging winners.”
A critical component of the current strategy is a tilt toward the small-cap space. Despite near-term market volatility, Doshi noted that the medium-term risk-reward ratio in small caps appears favorable. This is reflected in the fund’s asset distribution, where 29.93% is allocated to small caps, while large caps command 43.29% and mid caps account for 18.47%. The remaining 8.31% is held in cash and cash equivalents.
The fund’s breadth is significant, with holdings spread across 22 different sectors. While 13 stocks remained unchanged in March—including L&T, NTPC, DLF, and Ajanta Pharma—the overall portfolio size remained steady at 44 stocks, matching the count from February.
What This Means for Investors
For investors, the Abakkus Flexi Cap Fund’s movements reflect a broader bet on the resilience of Indian financials and the growth of industrial capacity. By increasing stakes in HDFC Bank and ICICI Bank while adding Tata Steel and M&M, the fund is positioning itself to benefit from a potential uptick in infrastructure and corporate credit growth.
The decision to maintain a nearly 30% allocation to small caps suggests that the management team is comfortable with higher volatility in exchange for the potential of outsized returns from smaller, high-growth companies. This approach is benchmarked against the BSE 500 Index (TRI), providing a diversified baseline for performance evaluation.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Investing in mutual funds involves market risks. Please consult with a certified financial advisor before making any investment decisions.
The next major checkpoint for the fund will be the disclosure of the April portfolio, which will reveal whether the current bullish stance on small caps and financials persists or if the fund pivots in response to new macroeconomic data. We will continue to monitor the fund’s AUM growth and sectoral shifts as they are reported.
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