When it comes to investing in mutual funds, the Parag Parikh Flexi Cap Fund has garnered significant attention from retail and institutional investors alike. Known for its distinct investment approach, this fund has consistently demonstrated strong performance and prudent fund management. In this article, we delve into a comprehensive analysis of the Parag Parikh Flexi Cap Fund Growth, exploring its history, investment philosophy, portfolio structure, risk metrics, and suitability for investors.
Fund Overview
Launch Date and Objective: The Parag Parikh Flexi Cap Fund was launched on May 24, 2013, with the primary objective of providing long-term capital appreciation by investing in a diversified portfolio across market capitalizations. As a flexi-cap fund, it has the flexibility to invest in large-cap, mid-cap, and small-cap stocks based on market conditions and opportunities.
Fund House: This fund is managed by Parag Parikh Financial Advisory Services (PPFAS) Mutual Fund, a firm known for its value-driven and research-oriented investment philosophy.
Minimum Investment Amount: New Purchase: ₹ 1,000; Additional Purchase: ₹ 1,000; Monthly SIP: ₹ 1,000; Quarterly SIP: ₹ 3,000;
Expense Ratio- Regular Plan: 1.33% Direct Plan: 0.63%
Asset Under Management (AUM)- ₹ 84,6401 Crores
Net Asset Value (NAV)- Regular Plan: 80.3837Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Direct Plan: 87.2939 (as on 7th Jan 2025)
Entry Load- NIL
Exit Load- Any redemption or switch-out above the limit shall be subject to the following exit load:
- 2.00% if the investment is redeemed on or before 365 days from the date of allotment of units.
- 1.00% if the investment is redeemed after 365 days but on or before 730 days from the date of allotment of units.
- No Exit Load will be charged if an investment is redeemed after 730 days from the date of allotment of units.
Fund Managers
Rajeev Thakkar (Chief Investment Officer and Equity Fund Manager)
Rajeev Thakkar has over two decades of experience in investment research and portfolio management. He is a Chartered Accountant (CA), Cost Accountant, Chartered Financial Analyst (CFA), and Certified Financial Planner (CFP). Rajeev has been associated with PPFAS AMC since its inception in 2013, bringing a deep understanding of equity markets and value investing principles. He has been instrumental in shaping the fund’s strategy and delivering consistent returns.
Raunak Onkar (Dedicated Fund Manager for Overseas Investments and Co-Fund Manager)
Raunak Onkar is a Fund Manager and Research Head at PPFAS Mutual Fund. He started his career with PPFAS in 2008 as an intern in the Research Team. He holds a B.Sc. in IT and an MMS (Finance) from the University of Mumbai. Raunak’s expertise lies in global equity markets, and he plays a crucial role in managing the fund’s international portfolio.
Raj Mehta (Debt Fund Manager)
Raj Mehta began his career as an intern with PPFAS Mutual Fund in 2012 and quickly progressed to become part of the Fund Management team. He is a Commerce graduate from the University of Mumbai and a Fellow Member of the Institute of Chartered Accountants of India (ICAI). Additionally, he is a CFA Charter Holder and holds certifications in debt market modules. Raj specializes in managing fixed-income portfolios.
Rukun Tarachandani (Domestic Equity Fund Manager)
Rukun Tarachandani brings over a decade of experience in equity markets. He began his career in 2013 as an Equity Research Analyst with Goldman Sachs Global Investment Research and later worked with Kotak Mahindra Asset Management. Rukun is an MBA (Finance) from MDI Gurgaon, holds an M.S. in Data Science from Northwestern University, and is a CFA Charterholder. His focus is on domestic equity investments, particularly in small and mid-cap stocks.
Mansi Kariya (Co-Fund Manager – Debt and Credit Research Analyst)
Mansi Kariya joined PPFAS Mutual Fund in 2018 as a Debt Dealer and gradually took on the roles of Credit Research Analyst and Co-Fund Manager for Debt. She holds a B.Com (Hons) from Calcutta University, an MS in Finance from ICFAI University, and is a CFA Charter Holder. Her expertise is in fixed-income and credit research.
Investment Philosophy and Strategy
The fund adheres to a long-term value investing strategy, focusing on:
- Stock Selection: The fund manager identifies undervalued stocks with strong fundamentals, aiming for consistent growth over time.
- Diversification: It maintains a diversified portfolio, spreading investments across different sectors and geographies, including international equities.
- Research-Driven Decisions: Investments are backed by in-depth research, ensuring that only high-quality businesses are chosen.
Portfolio Composition
Domestic and International Allocation:
Sectoral Distribution:
Top Holdings: Key domestic holdings include blue-chip stocks like HDFC Bank, ITC, and Bajaj Holdings.
International holdings often reflect high-growth technology companies, adding a global dimension to the portfolio.
Performance Analysis
The fund’s performance has consistently outpaced its benchmark indices, delivering superior risk-adjusted returns. Over the last five years, the Parag Parikh Flexi Cap Fund has offered a compound annual growth rate (CAGR) of approximately 15-18%, depending on market conditions.
Rolling Returns: Rolling return analysis highlights the fund’s ability to generate stable returns across different market cycles, demonstrating consistent outperformance over peer funds.
SIP Performance
Lumpsum Performance
Volatility Metrics:
Risk and Drawdown Analysis
Suitability for Investors: The Parag Parikh Flexi Cap Fund-Growth is ideal for:
Key Considerations
Conclusion:
The Parag Parikh Flexi Cap Fund-Growth stands out as a well-rounded investment option, blending domestic and international equities with a disciplined, research-driven approach. Its consistent track record, coupled with a focus on quality and diversification, makes it a compelling choice for long-term investors. However, as with any investment, potential investors should assess their risk tolerance, financial goals, and investment horizon before committing.
By staying true to its philosophy and delivering steady performance, the Parag Parikh Flexi Cap Fund continues to solidify its reputation as a dependable vehicle for wealth creation.
Source: PPFAS Mutual Fund Website & Valueresearchonline.com
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