How Good is Parag Parikh Flexi Cap Fund for Investment Purposes?
It is a popular Flexi-cap fund that focuses on long-term capital appreciation, let’s have an overview about its workings.
Parag Parikh Flexi Cap Fund was launched in 2013, and was classified under Flexi-cap Funds. The fund primarily invests across large-cap, mid-cap, and small-cap stocks and aims at investing in quality stocks that are available at reasonable valuations. Furthermore, the fund apart from investing in domestic equities also puts a part in international stocks that gives investors a diversified exposure. It works upon the buy and hold investment approach, which helps the fund keep the volatility factor at bay, thereby generating superior risk adjusted returns for its investors. According to statistics if Rs.10,000 was invested 5 years back in Parag Parikh Flexi Cap Fund, it would have appreciated to Rs 25,251, at a CAGR growth of 20.4%. The fund is designed to generate long term capital appreciation from an actively managed portfolio, comprising of equity and equity-related securities.
Furthermore, the fund managers follow a strategic approach that follows an active investment policy majorly based on fundamental research driven selection method. What sets Parag Parikh Flexi Cap Fund from other Flexi-cap schemes is its exposure to foreign entities, with Alphabet Inc. being the fund’s top holding and largest foreign exposure having about 9% of its corpus in it which is followed by Microsoft Corp. (7.9%), Amazon (7.4%), Facebook (4.7%), and Suzuki Motor Corporation (0.9%). Among domestic equities, Parag Parikh Flexi Cap Fund has its holdings in Indian Energy Exchange and Bajaj Holdings & Investment, ICICI Bank, HCL Technologies, ITC, and Sun Pharma, which have helped in boosting the fund’s performance to a great extent.
Parag Parikh Flexi Cap Fund has been able to face the shockwaves sent by volatile market conditions and has managed to stay strong all through. Parag Parikh Flexi Cap Fund is suitable for long-term investors looking for a value-oriented Flexi-cap fund that can offer maximum diversification along with safety and stability.