Parag Parikh Flexi Cap Fund, formerly known as Parag Parikh Long Term Equity Fund is an open-ended equity scheme investing across large cap, mid cap, small cap stocks. What makes Parag Parikh Flexi Cap Fund stand apart from other schemes within the same category is the exposure to foreign securities that the fund has.
Parag Parikh Flexi Cap Fund is a pioneer in international investing giving investors access to diversify their portfolios abroad. The objective of the fund is to seek to generate long-term capital growth from an actively managed portfolio with investment in Indian equities, foreign equities and related instruments and debt securities.
Parag Parikh Flexi Cap Fund Portfolio Disclosure
68.92% of the total corpus is invested in Indian equities while 21.68% are in foreign securities.
For the Indian equities, 15.95% allocation is in the Finance sector, 16.04% is in Internet & Technology and 11.19% is in banks.
Within the Indian allocation, the top 5 companies with over 5% allocation include Housing Development Finance Corporation Ltd. Finance 8.11%, Bajaj Holdings & Investment Ltd. Finance 7.71%, ITC 7.48%, ICICI Bank 6.05% and Axis Bank 5.14%.
Parag Parikh Flexi Cap Fund’s foreign holdings include Alphabet Inc (Google Class A) 6.62%, Microsoft Corporation 6.36%, Meta Platforms Inc (Formerly Facebook Inc) 5.05%, Amazon 3.08% and Suzuki Motor Corp 0.59%. 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%.
Date of Allotment: May 24, 2013
Assets Under Management (AUM): Rs 24,594.84 Crores ( as of July 31, 2022)
Net Asset Value (NAV): As of July 31, 2022
Regular Plan: 46.9119
Direct Plan: 49.9775
Expense Ratio: As of July 31, 2022
Regular Plan: 1.93%
Direct Plan: 0.77%
Tier 1 Benchmark Index NIFTY 500 (TR)
Additional Benchmark NIFTY 50 (TRI)
Rajeev Thakkar – Equity Fund Manager (Since Inception)
Raj Mehta – Debt Fund Manager (Since January 27, 2016)
Raunak Onkar – Fund Manager Dedicated for Overseas Securities (Since Inception)
Rukun Tarachandani – Equity Fund Manager (Since May 16, 2022)
Since its inception, the scheme’s CAGR is 18.32% as against a return of 14.58% of Nifty 500 and 13.60% of Nifty 50.
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.