Parag Parikh Flexi Cap Fund: Cash, Foreign Equity Exposure – Latest Fact Sheet


Parag Parikh Flexi Cap Fund is perhaps the first mutual fund allowing Indian investors to diversify their portfolio overseas. The latest October fact sheet shows that the fund house has further increased the level of cash holdings in the program.

As of July 31, the fund was sitting on 9.4% cash, which fell to 10.08% at the end of August. In September, cash increased further to 10.65%. As of October 31, the plan holds approximately 11.58% cash and liquid assets. Cash is represented as FRD and TREPS, including cash and cash equivalents and net current assets.

Assets under management (AUM) as of October 31, 2022 was Rs 27,712.05 crores compared to Rs 26,033.24 crores as of September 30, 2022. Exposure to foreign equities in August 2022 was 20.37%, which September fell to 18.46% of the AUM. As of October 31, 2022, the total exposure to foreign equities was 16.49%. The program’s CAGR since inception is 18.23%, compared to returns of 14.8% for the Nifty 500 and 13.82% for the Nifty 50 index.

As of October 2022, 71.93% of the total corpus was invested in Indian equities while 16.49% was in foreign securities and 10.58% was held in cash or liquid assets. Regarding the Indian equity exposure, 16.97% of the allocation is in the financials sector, 11.96% in internet and technology and 12.03% in banks.

Within the Indian equity allocation, the top 5 companies with an allocation above 5% include Housing Development Finance Corporation 7.99%, Bajaj Holdings & Investment 8.83%, ITC 7.64%, ICICI Bank 6, 16% and Axis Bank 5.87%.

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Alphabet Inc. (Google Class A) 5.18%, Microsoft Corporation, 5.03%, Meta Platforms Inc. (formerly Facebook Inc.), 1.75%, Amazon, 3.96% and Suzuki Motor Corp. (0.57%) are part of foreign investments. held by the Parag Parikh Flexi Cap Fund as of October 31. Currency risk must be taken into account when investing internationally and for the Parag Parikh Flexi Cap Fund, currency hedging covers approximately 75% of the foreign equity exposure.

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The Parag Parikh Flexi Cap Fund, originally the Parag Parikh Long Term Equity Fund, is an open-ended equity fund that invests in large, mid and small capitalization companies. The Parag Parikh Flexi Cap fund stands out from other plans in the same category due to its exposure to foreign equities. Through an actively managed portfolio that includes investments in debt securities, foreign and Indian equities, and related products, the fund’s objective is to provide long-term capital growth.

It is important to note that as of February 2, 2022, all new investments in foreign securities have been temporarily halted by Sebi. In addition, effective June 17, 2022, SEBI authorized AMCs to restart subscriptions and investments in foreign funds and instruments up to available margin without exceeding the foreign investment cap as of February 1, 2022.


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