Built for Every Market: How F.L.U.I.D Investing Navigates Market Moods

In an age where market themes shift faster than any single framework can keep up with, a different approach emerges: one that treats the market itself as the boss, and the rules as something that flexes with the cycle. 

This is the central idea behind F.L.U.I.D investing, a philosophy followed by smallcase manager and SEBI-registered research analyst Shashank Udupa. Built to navigate fluctuating markets through rule-based, data-driven portfolios, F.L.U.I.D is less a fixed playbook and more a way of places adaptability at the centre of investing.

What is F.L.U.I.D investing?

The clue lies in the name.

Like a fluid that takes the shape of its container, the framework is designed to adapt to changing market conditions rather than fight them.

The underlying belief is simple: markets change, and investing frameworks must change with them. Themes that worked in 2014 may lose relevance by 2026. Strategies that thrive in bull markets can struggle when conditions turn.

F.L.U.I.D starts with a different assumption.

As Shashank Udupa puts it, “The market is the superior person, not you. Don’t try to predict the market. Just react.“

Reacting, in this context, doesn’t mean being passive. It means having pre-defined rules for every market scenario, be it bull, bear, or sideways, so that when conditions change, the framework already knows what to do. 

How does it work?

F.L.U.I.D is a long-term framework that evaluates investments across five dimensions:

• Fundamentals
• Longevity
• Upside
• Integrity
• Downside

The idea? Different markets demand different priorities.

At its core, F.L.U.I.D combines three key pillars.

Momentum investing

When trends are strong and sectors are leading, the framework leans into momentum.

It first identifies sectors showing strength, then narrows to companies with both momentum and fundamental support. Signals such as moving averages, volume profiles and institutional flows help guide portfolio decisions.

Asymmetric opportunities

Not every market offers clear trends.

During choppy phases, the framework shifts its focus to opportunities where the risk-reward equation is skewed in favour of investors — turnaround stories, demergers and special situations where downside is limited but upside can be significant.

Risk management

This is where F.L.U.I.D differs most from traditional approaches.

The framework uses dynamic position sizing, systematic stop-losses and even cash calls. When technical and macro signals point to heightened risk, portfolios can reduce exposure or move entirely into liquid funds.

The objective isn’t to stay invested at all costs. It’s to preserve capital when the odds deteriorate.

How Shashank Udupa applies the framework

Speaking on smallcase’s new podcast series Case by Case, Udupa explained that his team operates using what he calls “edge cases.”

For every scenario, whether the Nifty rises 10%, falls 10%, or remains flat for months, there is already a predefined response.

One recent example came in March 2026 during global uncertainties and the West Asia conflict. As the Nifty broke its 200-day moving average amid escalating macro stress, Udupa’s framework flagged structural weakness. He took a tough call — moving one of his smallcases entirely to cash. Days later, Nifty fell by over 12%.

As Udupa notes, the harder discipline is staying in cash after the fall. Resisting the urge to redeploy too early when prices feel attractive, but the macro signal has not turned. 

As he puts it: “If Nifty falls 10%, I have an answer for that. If Nifty goes up 10%, I have an answer for that. I’m just reacting to Nifty.”

Want to know more about how F.L.U.I.D investing actually works in practice?  Catch the full conversation with Shashank Udupa on Case by Case, smallcase’s new podcast series.

smallcases in focus

Two of Shashank’s flagship smallcases represent different expressions of the F.L.U.I.D philosophy.

F.L.U.I.D – Q Quant

The basket is a high-conviction, rule-based portfolio designed to systematically capture momentum and factor-driven opportunities in Indian equities.

Designed to systematically capture sectoral and factor-based opportunities, the portfolio relies on quantitative models and monthly rebalancing to stay aligned with the market’s strongest trends. 

Every decision is backed by data, back testing, and factor research — removing bias, emotion, and noise. 

F.L.U.I.D – Q Quant smallcase by Shashank Sunil Udupa

F.L.U.I.D – C Fundamental

Built for long-term wealth creation, the strategy combines fundamental research with active risk management and disciplined rebalancing. 

It places greater emphasis on quality, valuation and compounding, making it better suited for investors with longer horizons and lower tolerance for portfolio churn.

The framework remains adaptive, but with patience and business quality at its core.

F.L.U.I.D – C Fundamental smallcase by Shashank Sunil Udupa

Different portfolios, but both are built on the same underlying belief:

Markets change. Frameworks should too.

Disclaimer: Investments in the securities market are subject to market risks. Read all the related documents carefully before investing. Past performance is not indicative of future results.

This analysis is for educational purposes and does not constitute investment advice. Market conditions can change, and past performance is not indicative of future results. Investors should conduct their own research and/or consult a certified financial advisor before making investment decisions.