Mumbai: Even as mid-cap and small-cap stocks crumble in the market sell-off, the portfolios of flexi-cap schemes show mutual fund managers have invested an average of 26% of their assets in these stock categories, according to data analysed by ETIG Research for the period ended December 31, 2024.Flexi-cap schemes, the second largest equity mutual fund category by assets, give fund managers the flexibility to invest in large-, mid- or small-cap stocks, depending on their outlook for the market.The flexi-cap category manages assets worth ₹4.38 lakh crore across 39 schemes. According to an ET study of the 10 largest flexi-cap schemes, products with lower exposure to mid-cap and small-cap stocks have fallen lower than the ones with higher exposure in the stock market sell-off since September 26.118159210Two of the largest flexi-cap schemes, Parag Parekh Flexicap Fund and HDFC Flexicap Fund, have allocated 6.42% and 14.9% of their corpus to mid-caps and small-caps, respectively. These funds have lost 3.3% and 7.9% in this period.Schemes with higher exposure to these stocks such as ICICI Prudential, Motilal Oswal and Axis, have fallen more in this period.The BSE 500 index, a benchmark for flexi-cap schemes, has fallen 12.96% since September 26, while the mid-cap and small-cap indices have declined 13.23% and 14.87%.A report by Kotak Mutual Fund said that while large-cap stocks trade at a 6% premium to the historical average, mid- and small-caps trade respectively at a 24% and 32% premium.