# Flexicap funds gain edge over largecap counterparts Edelweiss CIO Trideep Bhattacharya explains why flexible fund strategies are taking the lead. - **Source:** [Economic Times](https://brifing.si/source/37791137-c35a-4ffe-b6a9-fe103afc9e48) - **Published:** 2026-07-12 - **Topic:** [Finance](https://brifing.si/c/finance) - **Original article:** - **On Brifing:** https://brifing.si/s/457e0661-fd11-4209-b464-0ef2b7b0d3cb ## The largecap fund challenge Edelweiss CIO Trideep Bhattacharya argues traditional largecap funds are no longer the safest haven. Structural market share losses to nimbler competitors diminish their appeal. Bhattacharya proposes a different approach for modern wealth creation in India's evolving market landscape. ## Flexicap fund advantage Flexicap funds combine the stability of large companies with the growth potential of midcaps. Bhattacharya believes this hybrid approach better adapts to India's shifting consumption patterns. It offers more balanced portfolio diversification compared to pure largecap strategies. ## Rise of midcap companies High-growth sectors like hospitals, defense and industrial exports are better represented among midcap firms. Bhattacharya sees these companies shaping India's economic future, supported by improving earnings profiles. Their sectoral concentration offers unique growth opportunities. ## Cautious on smallcaps Earnings downgrades may still impact smallcap companies. Bhattacharya warns this segment could feel more pressure in the June quarter. He recommends selective exposure to smallcaps while maintaining more positive outlook on midcaps within the broader mid-smallcap universe. ## Opportunities in financial sector The Edelweiss team believes India's credit growth has bottomed out, with private banks positioned to benefit. Despite inflation and interest rate concerns, the overall sector outlook remains positive. 18-20% credit growth is anticipated in second half of 2023. ## IT sector in transition India's IT services sector is undergoing transformation due to AI revolution. Bhattacharya estimates this transition will take 2-4 quarters. Edelweiss prefers waiting until later stages before increasing exposure. Currently maintains underweight position in the sector. ## Strategic advice for investors Bhattacharya recommends flexicap-midcap fund combination for new investors. This strategy provides access to both stable largecaps and high-growth potential companies. It offers optimal solution to navigate India's changing market dynamics and wealth creation opportunities. ## Sources covering this story - https://economictimes.indiatimes.com/markets/stocks/news/largecap-funds-no-longer-the-best-bet-edelweiss-cio-trideep-bhattacharya-explains-why-flexicaps-may-win-now/articleshow/132342040.cms — --- _Summary written by Brifing from the original reporting. Copyright in the original article belongs to its publisher; read the full piece at the link above._