Why You Should Consider Investing in Parag Parikh Flexi Cap Fund?

Parag Parikh Flexi Cap Fund (PPFCF) has emerged as one of India's top-performing and most trusted mutual funds. In May 2025, the fund made headlines by crossing Rs 1 lakh crore in Assets Under Management (AUM), becoming the first actively managed mutual fund in India to achieve this milestone.

With market experts recommending flexi cap funds for navigating today's volatile markets, PPFCF stands out as the largest flexi cap fund in the country. It has also been given top ratings from Value Research and Morningstar, further reinforcing investor confidence.

What Are Flexi Cap Funds?

Flexi cap funds allow fund managers to invest across large-cap, mid-cap, and small-cap companies, as well as across various sectors and themes. This gives them the flexibility to adjust their portfolio based on changing market conditions.

In May 2025, flexi cap funds attracted Rs 3,841 crore in inflows, the highest among all mutual fund categories according to AMFI data released on June 10.

Impressive Returns of PPFCF That Beat the Benchmark:

A Rs 10,000 SIP (Systematic Investment Plan) started 10 years ago would have grown to Rs 35.60 lakh, delivering an annualized return (XIRR) of 20.63%. While, the same SIP in the Nifty 500 benchmark would be worth only Rs 26.61 lakh, with a lower return of 15.98%.

A lump sum investment of Rs 1 lakh at the time of the fund's launch in 2013 would now be worth Rs 8.93 lakh, giving a CAGR of 20.03%. The same amount in the Nifty 500 would have grown to Rs 5.54 lakh, with a CAGR of 15.35%.

About Parag Parikh Flexi Cap Fund:

Parag Parikh Flexi Cap Fund (PPFCF) is an open-ended equity mutual fund that offers flexibility to invest across large-cap, mid-cap, and small-cap stocks. It allocates at least 65% to Indian equities and up to 35% to international stocks or domestic debt instruments.

Launched on May 24, 2013, the fund is managed by a skilled team including Rajeev Thakkar, Raunak Onkar, Raj Mehta, Rukun Tarachandani, and Mansi Kariya. It is benchmarked against the NIFTY 500 TRI, and investors can start with just Rs 1,000.

The fund follows long-term investment strategy by selecting companies with strong management, robust business sectors, and solid financial fundamentals. This approach aims to build sustainable wealth over time.

Fund Performance:

The scheme has offered around 21.76% return in the last five years against 18.06% by the benchmark. The flexi cap fund offered 21.38% return in the last three years against 17.36% by the benchmark and. Since its inception, the scheme has offered 20.7% CAGR for SIP investment as per the Fund Data.

'Parag Parikh Flexi Cap Fund has delivered strong returns since its inception. Its strategy of investing in companies with attractive valuations has benefited investors and built confidence in the fund. Additionally, its international exposure-accounting for over 10% of the portfolio has further enhanced its appeal, making it a preferred choice among investors,' told Hemant Rustagi, CEO, WiseInvest Advisors to Goodreurns.

Investment Strategy of Parag Parikh Flexi Cap Fund:

The fund invests across large-cap, small-cap, and mid-cap with significant exposures to large caps. It follows a value-based stock picking with an internationally diversified portfolio. This has helped it generate alpha over other Flexi Cap funds. The fund has, on average, maintained 22% in international equities.

It has a disciplined, long-term investment strategy by selecting companies with strong management, robust business sectors, and solid financial fundamentals. This approach aims to build sustainable wealth over time.

PPFCF is a pioneer in international investing with the top four global stocks, Meta, Alphabet, Microsoft and Amazon accounting over 10% of the fund's portfolio.

Parag Parikh Flexi Cap Fund has invested Rs 518.14 crore in its own group company, which makes the fund even more attractive and helps build trust among investors, added Hemant Rustagi.

Fund's Portfolio:

Looking at the fund allocation, 67.30% is in Equities, 10.92% in overseas securities, and 21.43% in Debt and Money Market Instruments.

The major investment allocation of the fund is in Banks, Debt & Money market Instruments, Cash, Software, Automobiles, and Finance. The top 10 stocks, consisting of around 51% of the portfolio, are:

HDFC Bank - 8.11%
Bajaj Holdings & Investment - 6.87%
Coal India Limited Consumable - 5.95%
Power Grid Corporation of India - 5.83%
ICICI Bank - 4.87%
ITC - 4.40%
Kotak Mahindra Bank - 3.95%
Maruti Suzuki India - 3.58%
Mahindra & Mahindra - 3.51%
Axis Bank - 3.13%

What Has Worked For Parag Parikh Flexi Cap Fund?

One of the key factors behind the strong performance of the Parag Parikh Flexi Cap Fund is its ability to minimize losses during market downturns. The fund has consistently managed to protect investor capital better than many of its peers in volatile periods.

For example, in 2018, while the category average declined by 4%, this fund limited its loss to just 0.43%. Similarly, during the sharp market crash in March 2020 caused by the COVID-19 outbreak, the fund fell by 21.38%, compared to the category average drop of 26%. This downside protection has played a significant role in its long-term success.