The 30% smallcap tilt: How Abakkus Flexi Cap Fund is positioning for the next rally

While midcap valuations stretch to the higher side, Abakkus Mutual Fund is quietly anchored in a massive smallcap mispricing.

Sanjay Doshi, Head of Research & Investments, says that the Abakkus Flexi Cap Fund has maintained a deliberate 30% allocation specifically to smallcaps within its 50% SMID exposure.

This tactical tilt bypasses market fear, capturing high-conviction, beaten-down names poised to lead India’s next major growth rally.Edited excerpts from a chat with the fund manager:How has your outlook towards the market and the stocks you own changed after the Q4 results?

Given the macro headwinds, do you fear downgrades in Q1?We have seen a positive surprise in corporate earnings especially in the small and mid-cap space during Q4 FY26, following a strong performance in Quarter 3 as well.

While Q4 numbers were resilient, it is very likely that the full impact of West Asia crisis will be more visible in 1Q FY27 rather than Q4 FY26.