Parag Parikh Flexi-Cap Fund

The Parag Parikh Flexi-Cap Fund (Growth) is an open-ended, diversified, and dynamic equity Mutual Fund from Parag Parikh Financial Advisory Services Ltd. (PPFAS) Mutual Fund. This fund was established on May 28, 2013. Mr Rajeev Thakkar, Mr Raj Mehta, and Mr Raunak Onkar co-manage the fund currently.

It invests in Indian and global Large-Cap, mid-cap, and small cap equities. The fund typically invests some percentage of its assets in equities of publicly-traded Indian companies. The fund adheres to the compounding concept and only offers the Growth option. It is best suited for those looking to invest for at least five years.

Fund Overview

Here is the overview of Parag Parikh Flexi Cap Fund:

Investment Objective

The investment objective of Parag Parikh Flexi-Cap Fund (Growth) is long-term growth and Capital appreciation. The fund invests in a diverse Portfolio spanning multiple industries, sectors, and Market capitalisation to accomplish its investment objective.

The fund manager actively manages the portfolio of equities, equity-related securities, debt, and money market instruments. Debt and related securities account for 35% of the fund's assets.

Fund Distribution

In terms of equity and debt, this fund holds 94.9% equity, 0% in debt and 5.1% in cash related instruments. The size breakup of this fund is as follows:

Here is the sector-wise allocation of funds:

Fund Holdings

Here is the detailed list of the fund's current holdings, along with its percentage, sector, valuation and returns.

Return Analysis of Parag Parikh Flexi-Cap Fund

Return analysis is a critical performance metric used by investors to assess the profitability of a certain investment. It's crucial to keep an eye on improvements in performance which will eventually help in making a clear-cut decision on future business choices.

Trailing Returns

Point-to-point returns across various time intervals are represented by trailing returns. These returns demonstrate how effectively this fund has compounded in relation to other assets or products.

Key Ratios

The basic financial ratios used to describe and summarise a company's present financial situation are known as key ratios. These ratios are used by analysts and investors to compare firms to their competitors.

From the above table, it can be clearly ascertained that this fund performs better than the category average.

Taxation

As it is a Flexi-Cap mutual fund, the taxation of this fund is as follows:

• Short-term Capital Gains (less than a year) are taxed at 15%
• Long-term capital gains (greater than one year) are taxed at a rate of 10%, with no indexation advantage
• Dividends are taxed according to the slab rate
• Long-term gains of up to ₹ 1 lakh are tax-free
• No Taxes are to be paid till the date you hold the funds

Comparison of Parag Parikh Flexi Cap Funds with Peers

Check this table to get a comparable preview of peer funds with Parag Parikh funds for a better understanding and meaningful action.

Pros and Cons

Before choosing to invest in this mutual fund, you must analyse its pros and cons.

Pros

• The three-year and five-year annualised returns are greater than the category average
• The fund's performance over the last three years is impressive. It has earned a greater alpha of 10.9% than the benchmark -NIFTY 500 TRI
• It has a lower cost to Income ratio, i.e. expense ratio

Cons

• It has a larger AUM. Funds having a bigger AUM often have lower future returns
• 1-year annualised returns are 27.52%, which is lower than the category average

The Bottom Line

The Parag Parikh Flexi-Cap Fund is a dynamic, diversified equity-oriented strategy. This, in turn, makes this fund susceptible to market fluctuations. Due to the fund's strong belief in the idea of compounding, it only provides the "Growth Option," not the "Dividend Option." Furthermore, the scheme's corpus is not limited to a single Industry, market capitalisation, or area.

It is a better investment option for someone who wants to invest for at least five years and is comfortable with risk. The fund is not suitable for a short-term investor who is not comfortable with the Inherent Risk.