Parag Parikh Flexi Cap Fund: Portfolio Holdings and Performance Review

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Parag Parikh Flexi Cap Fund, formerly known as Parag Parikh Long Term Equity Fund, is an open-end equity program that invests in large, mid and small capitalization stocks. What sets the Parag Parikh Flexi Cap Fund apart from other schemes in the same category is the exposure to foreign securities that the fund has.

Parag Parikh Flexi Cap Fund is a pioneer in international investment enabling investors to diversify their portfolios overseas. The objective of the fund is to seek to generate long-term capital growth from an actively managed portfolio with investments in Indian equities, foreign equities and related instruments and debt securities.

Also read: Are Indians buying more US stocks as investment in international stocks rises 73% to $746.57m?

Parag Parikh Flexi Cap Fund Portfolio Disclosure

68.92% of the total corpus is invested in Indian stocks while 21.68% is in foreign securities.

For Indian stocks, 15.95% allocation is in the financials sector, 16.04% in internet and technology and 11.19% in banks.

Within the Indian allocation, the top 5 companies with an allocation above 5% 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%.

Foreign holdings of Parag Parikh Flexi Cap Fund 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 investment, currency risk must be taken into account. For the Parag Parikh Flexi Cap Fund, currency hedging is around 75% of the exposure to foreign securities. Funds held in debt and money market instruments as of July 31, 2022 was 9.40%.

FUND OVERVIEW

Grant date: 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 speed: 49.9775

Expense ratio: As of July 31, 2022

Regular diet: 1.93%
Direct mode: 0.77%

Benchmark

Benchmark Tier 1 NIFTY 500 (TR)
Additional reference NIFTY 50 (TRI)

Also Read: Mutual Funds: Who Shouldn’t Invest in Mutual Funds and Instead Look for Other Investment Options

Fund managers

Rajeev Thakkar – Equity Fund Manager (since inception)
Raj Mehta – Debt Fund Manager (since January 27, 2016)
Raunak Onkar – Dedicated fund manager for foreign securities (since inception)
Rukun Tarachandani – Equity Fund Manager (since May 16, 2022)

Fund performance

Since inception, the plan’s CAGR is 18.32% compared to a return of 14.58% for Nifty 500 and 13.60% for Nifty 50.

Fund performance

It should be noted that new investments in foreign securities were temporarily suspended from February 2, 2022. In addition, from June 17, 2022, SEBI had authorized AMCs to resume underwriting and investing in funds/ foreign securities up to available margin without breaching the overseas investment limit as of February 1, 2022.

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