HFDC and Parag Parikh Flexi Cap Performance: Flexi-cap mutual funds have quietly emerged as one of the most reliable equity categories for long-term investors. With the freedom to invest across large-, mid- and small-cap stocks without rigid allocation limits, these funds give fund managers the flexibility to adjust portfolios based on market conditions, valuations and opportunities.
That flexibility has proved especially valuable in volatile market phases, when leadership keeps shifting between market segments. It is also why flexi-cap funds have attracted strong investor interest over the years.
Parag Parikh vs HDFC Flexi Cap: Long-term returns compared
In this story, we compare two of the most tracked flexi-cap schemes in India — Parag Parikh Flexi Cap Fund – Direct Plan – Growth and HDFC Flexi Cap Fund – Direct Plan – Growth — to understand how they stack up across different time horizons.
The comparison is based on flexi-cap funds selected from 15 of the largest mutual fund houses in the country. Only those schemes that have completed at least 10 years were considered, ensuring a fair comparison across 3-year, 5-year and 10-year periods. This helps filter out short-term performers and focuses on consistency across market cycles.
Lumpsum returns: Which fund tops in which time-frame?
When it comes to long-term lumpsum performance, leadership between the two funds changes depending on the investment horizon.
3 years: Parag Parikh Flexi Cap Fund leads with 22.69%, narrowly ahead of HDFC Flexi Cap Fund at 22.52%
5 years: HDFC Flexi Cap Fund clearly tops with 25.47%, compared with Parag Parikh’s 21.45%
10 years: Parag Parikh Flexi Cap Fund regains the lead with 18.38%, while HDFC Flexi Cap Fund delivers 17.56%
In summary, Parag Parikh edges ahead in the short-to-medium (3 years) and long-term (10 years) periods, while HDFC dominates the 5-year window. This underlines an important reality of equity investing — fund leadership is rarely permanent and changes with market cycles.
Overall, these two funds have emerged as category toppers across 3, 5 and 10 years, reinforcing their long-term credibility.
SIP returns: A different picture emerges
Systematic Investment Plan (SIP) returns show a slightly different trend, especially in shorter time frames.
3-year SIP: HDFC Flexi Cap Fund leads with 19.79%, versus Parag Parikh’s 17.81%
5-year SIP: HDFC Flexi Cap Fund again stays ahead at 21.57%, compared with 18.40%
10-year SIP: Parag Parikh Flexi Cap Fund takes the lead with 20.09%, marginally higher than HDFC’s 19.54%
Simply put, HDFC Flexi Cap Fund has delivered stronger SIP outcomes in the short and medium term, reflecting its relatively more aggressive equity positioning. Parag Parikh Flexi Cap Fund, meanwhile, stands out over the long term, highlighting the strength of its disciplined and risk-aware investment style.
Parag Parikh Flexi Cap Fund’s more details
Managed by PPFAS Mutual Fund, Parag Parikh Flexi Cap Fund was launched on 24 May 2013 and has built a reputation for steady, valuation-conscious investing.
Return since launch: 19.58% (annualised)
Benchmark: NIFTY 500 TRI
AUM: Rs 1,29,783 crore
Expense ratio: 0.63%
Parag Parikh Flexi Cap Fund – Direct Plan: Risk & return metrics
Standard deviation: 8.42 (lower volatility than many peers)
Sharpe ratio: 1.67
Sortino ratio: 2.41
Beta: 0.57 (significantly less volatile than the benchmark)
Alpha: 8.96
This combination of lower volatility and higher alpha explains why the fund has been able to deliver strong risk-adjusted returns over long periods.
Parag Parikh Flexi Cap Fund – Top holdings
HDFC Bank – 8.03%
Power Grid Corporation of India – 5.91%
ICICI Bank – 4.85%
Bajaj Holdings & Investment – 4.71%
Coal India – 4.70%
The portfolio reflects a balance between financials, utilities and cash-generating businesses.
HDFC Flexi Cap Fund’s more details
Launched on 01 January 2013, HDFC Mutual Fund’s flexi-cap offering is among the largest in the category.
Return since launch: 16.96% (annualised)
Benchmark: NIFTY 500 TRI
AUM: Rs 94,069 crore
Expense ratio: 0.67%
HDFC Flexi Cap Fund – Direct Plan: Risk & return metrics
Risk category: Very High
Standard deviation: 10.52
Sharpe ratio: 1.32
Sortino ratio: 2.31
Beta: 0.78
Alpha: 6.99
These numbers suggest controlled volatility and consistent benchmark outperformance, which explains its strong showing, particularly in the 5-year and SIP return comparisons.
HDFC Flexi Cap Fund’s top holdings
ICICI Bank – 9.45%
HDFC Bank – 8.78%
Axis Bank – 7.35%
State Bank of India – 4.58%
SBI Life Insurance – 4.18%
The portfolio has a strong tilt towards financials, reflecting confidence in India’s banking and insurance sectors.
What investors should remember
While both Parag Parikh and HDFC Flexi Cap Funds have delivered impressive long-term numbers, investors should avoid choosing funds solely on past returns. Returns reflect what has already happened, not what will necessarily happen in the future.
Before investing, it is equally important to assess risk metrics, portfolio construction, fund strategy, expense ratio, consistency across market cycles and one’s own risk tolerance. Flexi-cap funds can be powerful long-term wealth creators — but only when they align with an investor’s goals, time horizon and ability to stay invested through market ups and downs.
Disclaimer: The above content is for informational purposes only. Mutual Fund investments are subject to market risks. Please consult your financial advisor before investing.