Parag Parikh Flexi Cap Fund – Direct Growth

The Parag Parikh Flexi Cap Fund is a diversified equity scheme which was launched on 10th October 2012 by PPFAS mutual fund.

The Parag Parikh Flexi Cap Fund Direct Growth fund is managed by Raunak Onkar, Rajeev Thakkar, and Raj Mehta. The bulk of the fund’s holdings are spread among the banking, services, IT, consumer goods, and auto manufacturers industries.

The scheme’s investment objective is to strive to produce long-term capital growth via an actively managed portfolio that is predominantly composed of equity and equity-related securities. This growth will be achieved by actively managing the portfolio. The scheme will make investments in debt securities, overseas stocks, and Indian equities, as well as associated products.

Pros & Cons

Who should invest in Parag Parikh Flexi Cap Fund?

The Parag Parikh Flexi Cap fund is consistently ranked among the most sought-after options within the Flexi Cap category. It provides inflation-beating performance over the long term and is appropriate for investment goals with a tenure of at least 10 to 15 years (minimum 5 years).

The Parag Parikh Flexi Cap has regularly beaten its rivals and its benchmark. Since its inception in 2013, the fund has generated a return of Rs 442 for Rs 100 invested. In addition, the scheme’s corpus is not limited to a certain industry, market capitalisation, geographic region, etc.

An individual who desires to invest for a minimum of 5 years and who is OK with volatility may choose this investment choice. If you’re looking for a low-risk, short-term investment, this isn’t the fund for you.

What are the benefits of investing in the Parag Parikh Flexi Cap Fund?

• Since its inception in 2013, the Parag Parikh Flexicap Fund has consistently returned an average of 17.5% annually for its investors (CAGR). That’s an increase of 4.5–5% in returns compared to the NIFTY 500 TRI and the NIFTY 50 TRI.
• To date, no investor who maintained their position in the PPFAS Flexi Cap fund for at least 7 years has experienced a loss. Over a seven-year time horizon, the fund has provided a minimum return of 14%, significantly above its benchmark.
• Concerning risk-return metrics, Parag Parikh Flexi Cap Fund has an unrivalled track record. Parag Parikh Flexi Cap Fund has outperformed its benchmark and the vast majority of its category rivals over the last several years, notwithstanding the extreme volatility seen in the equities markets.
• The Parag Parikh Flexi Cap Fund has generated significant alpha above its benchmark Nifty 500 – TRI and has outperformed the vast majority of its category rivals over the previous three, five, and seven years, with compound annual growth rates of about 26.6%, 19%, and 18.3%, respectively.
• The fund has underperformed the benchmark and several of its rivals over the last year, but it has the potential to recover and outperform in the future.