This Flexi-cap SIP Mutual Fund Has Given Upto 100.45% Returns In 5 Years

New age investors are having more risk appetite regarding their investment portfolios, and they are being attracted towards mutual funds and SIPs, than traditional investment instruments.

SIP Investment rationale and Flexi cap fund

Before choosing an SIP, you must check the portfolio of the fund, like the funds' equity holdings, fund size, expense ratio, previous years' returns, etc. This article will discuss a fund that has given around 100.45% SIP returns in the past 5 years, having a quality fund size. This is a Flexi-cap fund, which means the fund manager invests in multiple large-cap, mid-cap, and small-cap stocks, without any restrictions of the company or stocks' market capitalization spectrum. Hence, this fund will give you exposure to company stocks that have given good returns themselves previously. The large-cap and mid-cap stocks give more security or assurance. On the other hand, the small-cap funds can fetch better returns in the near-term, as these are expanding or developing company stocks.

Parag Parikh Flexi Cap Fund - Direct Plan

The Parag Parikh Flexi Cap Fund - Direct Plan is one of the Flexi-cap mutual fund SIPs, available for investors, that have given considerably good returns in long term. The Parag Parikh Flexi Cap Fund's NAV stood at Rs. 54.62, and its fund size is Rs. 19933.09 Crore. The Expense ratio is 0.81%, and the category average is 0.99%. So, the ER is not too high compared to the category average, which means, the investors' potential to get a better profit is higher. Additionally, the Fund Size is also quite impressive of the fund. The fund size means the total market value. It is the fund under discretionary management, and the fund manager will be entitled to trade in the market. A higher fund size assures higher security of liquidity of the mutual fund SIP. In that case, the Parag Parikh Flexi Cap Fund scores well.

If you sell the fund after 1 year, you will have to give the long-term capital gain tax. In case your long-term capital gain crosses Rs. 1 lakh, the tax rate is 10%. Otherwise, if you sell the fund before 1 year, certainly the short-term capital gain tax will be applicable at the 15% tax rate.

Absolute and annualized returns

Parag Parikh Flexi Cap Fund mutual fund's absolute returns have been best in long term. In the last 1 year return stood at 44.10%, in the last 2 years it has fetched 93.13% returns, in the last 3 years it has fetched 125.68% returns, and in the last 5 years, it has fetched 192.21% returns. Additionally, in the past 1 year, the Parag Parikh Flexi Cap Fund mutual fund's annualized returns stood at 44.10% while the category average is 33.86%.

Parag Parikh Flexi Cap Fund SIP's absolute returns are profitable. In the last 1-year SIP return stood at 19.59%, in the last 2 years it has fetched 54.07% returns, in the last 3 years it has fetched 73.26% returns, and in the last 5 years, it has fetched 100.45% returns. Annualized returns of this fund's SIP were 47.75% in the past 2 years, and 39.07% in the past 3 years.

Portfolio

The Parag Parikh Flexi Cap Fund's Portfolio Turnover Ratio was 28.03%. This fund's equity holding is 65.72%, foreign equity holding is 28.85%, and 5.43% in others. The top 5 equity holdings of the Parag Parikh Flexi Cap Fund are, Bajaj Holdings & Investment Ltd. (Nbfc), Alphabet Inc (Foreign equity), ITC Limited (Cigarettes), Microsoft Corp (Foreign equity), Amazon (Foreign equity). The Parag Parikh Flexi Cap Fund's Large Cap Investments are 2.91%, Mid Cap Investments are 5.36%, Small Cap Investments are 14.25%, and 32.05% in other funds.

Other available funds in the peer are Quant Flexi Cap Fund, BOI AXA Flexi Cap Fund, PGIM India Flexi Cap Fund, etc.

(Also read: This Flexi-cap SIP Mutual Fund Has Given Upto 122.75% Returns In 5 Years: See Portfolio)

 

 

Disclaimer

Investing in equities/mutual funds/SIPs poses a risk of financial losses. Investors must therefore exercise due caution. Greynium Information Technologies, and the author are not liable for any losses caused as a result of decisions based on the article.

(Data mentioned as on January 14, 2022)