Parag Parikh Flexi Cap Fund, a pioneer in international investing, giving investors access to diversify their portfolios abroad, had three interesting developments in the portfolio in the month of August.

Firstly, the scheme has increased the cash component in the scheme. According to the latest factsheet, as of August 31, the cash component has gone up to 10.08% in the flagship scheme. As on July 31, the fund was sitting on 9.4% cash. At the end of August 31, the AUM of Parag Parikh Flexi Cap Fund was Rs 25,996.18 Crores compared to Rs 24,594.84 Crores as of July 31.

Secondly, in the month of August, the fund added NMDC Ltd. which is the sole addition to the portfolio.

Finally, the exposure to international equities has also come down a bit as of August 31 but allocation to Amazon and Suzuki has increased slightly. From 21.68%, the exposure to foreign stocks has come down to 20.37% in August 2022.

Since its inception, the scheme’s CAGR is 18.46% as against a return of 15% on the Nifty 500 and 13.91% on the Nifty 50 index.

An open-ended equity fund, Parag Parikh Flexi Cap Fund, formerly known as Parag Parikh Long Term Equity Fund, invests in large-, mid-, and small-cap firms. The exposure to international securities that the fund has distinguishes Parag Parikh Flexi Cap Fund from other plans in the same category.

The fund’s objective is to provide long-term capital growth through an actively managed portfolio that includes investments in debt securities, international and Indian equities, as well as associated products.

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Parag Parikh Flexi Cap Fund Portfolio Disclosure

As of July 2022, 68.92% of the total corpus was invested in Indian equities while 21.68% was in foreign securities. As of August 2022, 69.55% of the total corpus was invested in Indian equities while 20.37% was in foreign securities.

For the Indian equities, 16.06% allocation is in the Finance sector, 14.69% is in Internet & Technology and 11.34% is in banks.

Within the Indian allocation, the top 5 companies with over 5% allocation include Housing Development Finance Corporation Ltd. Finance 8.20%, Bajaj Holdings & Investment Ltd. Finance 7.73%, ITC 7.48%, ICICI Bank 6.21% and Axis Bank 5.13%.

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Parag Parikh Flexi Cap Fund’s foreign holdings include Alphabet Inc (Google Class A) 6.02%, Microsoft Corporation 5.79%, Meta Platforms Inc (Formerly Facebook Inc) 2.88%, Amazon 5.08%, and Suzuki Motor Corp 0.60%. In international investing, currency risk has to be taken care of. For Parag Parikh Flexi Cap Fund, the currency hedge is to the extent of approximately 75% of exposure in overseas securities. Funds held in debt and money market instruments as of July 31, 2022, were 9.40%.

It needs to be noted that fresh Investments in foreign securities were temporarily suspended from February 2, 2022. Further, from June 17, 2022, SEBI had permitted the AMCs to resume subscription and make investments in overseas funds/securities up to the headroom available without breaching the overseas investment limit as of February 01, 2022.