The Quant Flexi Cap Fund has released its June portfolio, providing a comprehensive look into its recent stock positioning, capital deployment, and market strategy. While the fund’s NAV declined by 4.93% year-on-year, there are notable movements in equity holdings, futures positions, and cash allocation that shed light on its evolving approach to market conditions.
Increase in AUM Despite NAV Decline
Despite the drop in NAV, the fund's assets under management (AUM) saw a healthy increase of over ₹173 crore month-on-month. This indicates either additional investor inflows or a revaluation of holdings that offset the NAV contraction. The fund appears to be deploying capital more aggressively as evidenced by the changes in equity and cash positions.
Top Equity Holdings and Additions
As of June, the fund’s top three equity holdings are:
1. Reliance Industries Limited – ₹4810039 units (-3.25% change)
2. Adani Power Limited – Steady at ₹7500000 units
3. Samvardhana Motherson International Ltd – Constant at ₹2737158 units
Significant additions during June include:
Laxmi Dental Limited – up 508.5%, increasing from 81636 to 496758 units
Oil and Natural Gas Corporation Ltd. – up 228.85%, from 200784 to 660284 units
Siemens Energy India Ltd. – New entry with 192000 units
Digidite Solutions Ltd. – Also newly added with 1425304 units
These additions suggest a pivot towards diversified industrials and niche sectors.
Futures Positioning Indicates Bullish Bias
In addition to its cash equity holdings, the fund has taken a 6.43% long futures position, specifically in:
Tata Power
Aurobindo Pharma
Bajaj Auto
Chambal Fertilisers
These leveraged bets imply a tactical bullish outlook in these specific sectors, potentially targeting short- to mid-term gains.
Cash Holdings Dwindle Further
The fund’s cash holding trajectory shows a clear direction — more capital is being deployed into the market. It has dropped significantly from:
9.71% in April
1.19% in May
0.52% in June
This reduction in cash suggests the fund managers are confident in equity opportunities and are minimizing idle capital in anticipation of market gains or valuation upticks.
Complete Exit and Selective Trimming
A full exit was made from Housing & Urban Development Company Ltd, with a 100% reduction from 3732435 to zero units. Meanwhile, holdings like Reliance Industries saw a minor trimming of 3.25%, indicating profit booking or rebalancing rather than a bearish stance.
Steady Holdings Indicate Conviction
Several companies maintained flat holdings month-on-month, indicating continued confidence in their performance or long-term potential. These include:
Life Insurance Corporation of India (LIC)
Larsen & Toubro
Adani Wilmar
Avenue Supermarts
Tata Consumer Products
GMR Airports
Such consistency can often point to long-term value bets or core portfolio components.
Conclusion
The June portfolio update of Quant Flexi Cap Fund paints a picture of an actively managed, opportunistic strategy with selective risk-taking. Despite the NAV contraction, the rise in AUM and lower cash reserves show bullish undertones. The portfolio leans into power, financials, infrastructure, and industrials, with an added tactical boost from futures exposure. Investors and market watchers will be keen to see how these bold moves pan out in the coming quarters.
Disclaimer:This article is for informational purposes only and should not be construed as investment advice. Mutual fund investments are subject to market risks. Please consult your financial advisor before making any investment decisions
