Parag Parikh Flexi Cap Fund: A Comprehensive Guide for Investors

 

Flexi-cap funds are funds that invest in equity stocks across a range of market capitalizations, from small-cap to large-cap. They invest in diversified stocks that help reduce the risk while increasing the returns for the investors. Know about one such fund, which is the Parag Parikh Flexi Cap Fund.

 

About the Parag Parikh Flexi Cap Fund

Parag Parikh Flexi Cap Fund is a type of equity fund that is an open-ended scheme and invests in diversified portfolios across sectors, market caps, countries, etc. It invests at least 65% of its portfolio in the Indian market.

 

This scheme is best for investors who are looking for long-term investing. It provides ample liquidity to the investors, and they can switch in or redeem their holdings on any business day at the prevailing NAV.

 

AMC (Asset Management Company)

PPFAS Asset Management Private Limited

Launched on

13th May, 2013

AUM (in ₹ crores)

₹29,953.06 crores

NAV (Direct Plan)

₹52.8102

NAV (Regular Plan)

₹49.2848

Benchmark Index

NIFTY 500 TRI

1-Year Returns

2.55%

3-Year Returns

33.13%

5-Year Returns

17.44%

Returns Since Inception

18.48%

Exit Load

●     If redeemed within 365 days of investment: 2%

●     If redeemed within 365 to 730 days of investment: 1%

●     If redeemed after 730 days of investment: No charges

Note: Data as of 19th March, 2023.

 

Which investors should invest?

The scheme is best for investors who are looking to invest a minimum of five years with an experienced fund manager who minimizes the risk and tries to increase the return. It is also best for those who are looking for a scheme that actually has good insider investing.

 

Which investors shouldn’t invest?

You shouldn’t invest in the scheme if you are keen to check NAV performance every day and do not wait for the results in the long term. This scheme does not provide periodic income to the investors in terms of dividend earnings.

 

Investment Profile of the Fund

The risk profile of the Parag Parikh Flexi Cap Fund is very high because it invests more in equity and related stocks. However, it has the potential to provide good returns over the period if the investors do not worry about the market’s volatility.

 

Type of Instruments

Minimum allocation

Maximum allocation

Risk Profile of the Instrument

Equity Stocks

65%

100%

Medium - High

Debt and Money Market Instruments

0

35%

Low - Medium

Foreign Equity Stocks

0

35%

Medium - High

Debt Securities issued by REITs and InvITs

0

10%

Medium - High

Note: Data as of 19th March, 2023.

Top 5 Stock Holdings

The fund has portfolio holdings of around 86% in equity, less than 1% in debt, and the rest in other assets. It has around 30% of its holdings in the financial sector only and 15% in the services sector.

 

Stocks Name

Value (in ₹ crores)

% of total Holdings in the Portfolio

Housing Development Finance Corporation

2338.72

7.81%

ITC Limited

2286.53

7.63%

Bajaj Holdings & Investment

2256.92

7.53%

ICICI Bank

1667.46

5.57%

HCL Technologies

1600.14

5.34%

Note: Data as of 19th March, 2023.

 

Conclusion

Therefore, you should definitely invest if your investment goal matches the Parag Parikh Flexi Cap Fund’s investment profile. You can invest in them using the free demat account opening, either with the SIP or lumpsum method.

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