In April, the Parag Parikh Flexi Cap Fund (PPFCF) made some interesting moves. The portfolio of international companies held by the Parag Parikh Flexi Cap Fund has undergone major modifications. PPFCF fund has not only sold the entire stake of Suzuki Motor Corp (ADR) but also increased allocation to other foreign stocks held in the portfolio.

PPFCF foreign holdings ( as of March 2023) consisted of allocation into five international companies – Microsoft Corporation, Alphabet, Amazon, Suzuki Motor Corp (ADR) and Meta Platforms (Formerly Facebook Inc.)

The total allocation into international stocks stands at 17.15% of the total AUM of the fund. As of April 2023, PPFCF has exposure to four foreign stocks – Microsoft Corporation (5.36%), Alphabet (4.82%, )Amazon (3.54%), and Meta Platforms (3.43%).

The entire allocation of 0.54% of Suzuki Motor Corp (ADR) has been sold in PPFCF. Instead, the fund has purchased shares of Maruti Suzuki India Limited Automobiles listed on the Indian exchange to the tune of 1.12%.

As a result, PPFCF currently holds four international stocks rather than the five overseas corporations it previously held.

Another key thing to know about the PPFCF fund’s recent move is that the fund has increased cash holdings in April compared to March 2023. By April end, the fund had about 14.27% in cash holdings as against 12.46% held at March end.

Exposure Reduced

Hero MotoCorp
Housing Development Finance Corporation
ICICI Bank Limited
Axis Bank Limited
HCL Technologies
Power Grid Corporation
Coal India

Exposure Increased

ITC Limited
Bajaj Holdings & Investment
Indian Energy Exchange

As of April 28, 2023, the Parag Parikh Flexi Cap Fund has a 1-year return of 9.38% compared to the Nifty 500’s and the Nifty 50’s returns of 4.05% and 6.91%, respectively. The CAGR of PPFCF since commencement (May 24, 2013) is 18.10% as opposed to 13.15% for Nifty 50.

The AUM was around Rs 33,615.95 crore as of April 28, 2023. Including the arbitrage position, Indian shares make up about 70% of the AUM, while international equities make up almost 17%. PPFCF is taxed the same as any other equity fund that invests more than 65% of its assets in Indian stocks.

PPFCF is a flexi-cap international mutual fund scheme that allows Indian investors to diversify internationally. The exposure to foreign companies sets the Parag Parikh Flexi Cap Fund apart from other plans in the same category. The PPFCF is an open-ended equity-oriented plan that invests in big, medium, and small-cap equities both domestically and internationally.