Parag Parikh Flexi Cap Fund (PPFCF), a popular mutual fund scheme among Indian investors, has completed ten years. Since its debut in May 2013, the Parag Parikh Flexi Cap Fund has earned a compound annual growth rate (CAGR) of 18.10%. In contrast, PPFCF’s benchmarks – Nifty 500 and Nifty 50 have generated 13.89% and 13.15% (April 2023) over the same period, respectively.
There are two unique things to know about the PPFCF – Firstly, it is a Flexi-cap mutual fund scheme with investments in large, midsize, and small-cap stocks. Secondly, the scheme has exposure to international stocks in its portfolio. The fund suits those investors who look for a flexi-cap fund with foreign exposure. “The main objective to invest abroad is to reduce risk rather than necessarily earn a higher return,” says Rajeev Thakkar, Chief Investment Officer, PPFAS Mutual Fund.
PPFCF’s overall assets under management (AUM) have risen by over 220 times from Rs. 152.45 crores to Rs 33615.95 crores on April 28, 2023. The astronomical rise in AUM comes on the back of a healthy growth in its folio strength. The popularity of the scheme can be gauged by a look at the number of folios which has grown from around 800 to around 28 lakh now.
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“The size of Parag Parikh Flexi Cap Fund has surely grown over the last decade. This has prompted some to wonder whether we should close for fresh investments. We are not considering this for now,” says Thakkar.
17.15% of the PPFCF’s total AUM is allocated to foreign stocks. PPFCF holds foreign investments in stocks of Microsoft Corporation (5.36%), Alphabet (4.82%), Amazon (3.54%), and Meta Platforms (3.43%) as of April 2023. In April, PPFCF sold the entire stake of Suzuki Motor Corp (ADR) and now holds four foreign stocks in the portfolio instead of five companies.
The fact that the PPFCF fund’s cash holdings have grown is another significant development in recent times. By the end of April, the fund had about 14.27% of cash holding, compared to 12.46% at the end of March.