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The Parag Parikh Flexi Cap Fund – Growth Plan has delivered remarkable returns since its inception on May 28, 2013. Investors who started a Systematic Investment Plan (SIP) of Rs 10,000 per month have seen their investment grow to Rs 43.50 lakh over 11 years, achieving an impressive annualised return of 20.20%. This performance raises a crucial question: Should investors consider investing in this fund now?
The fund’s SIP performance is a testament to its robust strategy and market timing. Investors who have contributed a total of Rs 13,30,000 over 133 instalments have seen a significant return on their investment, translating to an XIRR (Extended Internal Rate of Return) of 20.20%. This high return rate showcases the fund’s ability to capitalise on market opportunities while managing risks effectively.
| SIP Return | Value |
| Amount Invested | Rs 13,30,000 |
| Current Value | Rs 43,50,100 |
| Number of Instalments | 133 |
| XIRR | 20.20% |
As of May 2024, the Parag Parikh Flexi Cap Fund manages assets worth Rs 66,383.8 crore, marking a 3.83% increase from Rs 63,933.8 crore in April 2024. The fund’s Net Asset Value (NAV) stood at Rs 73.75 on June 7, 2024. Notably, the fund holds a small position (0.02% of AUM) in Nifty 50 Index 22,000 Call December 2024 Options, indicating a strategic approach to hedging and potential market opportunities.
The fund’s top five holdings as of May 2024 include HDFC Bank Limited (8.42%), Power Grid Corporation of India Limited (6.35%), Bajaj Holdings & Investment Limited (6.03%), ITC Limited (5.45%), and Coal India Limited (5.35%). These holdings reflect a balanced approach across diverse sectors, providing stability and growth potential.
| Sr.No | Company Name | % holding as of May 2024 |
| 1 | HDFC Bank Limited | 8.42 |
| 2 | Power Grid Corporation of India Limited | 6.35 |
| 3 | Bajaj Holdings & Investment Limited | 6.03 |
| 4 | ITC Limited | 5.45 |
| 5 | Coal India Limited | 5.35 |
Additionally, the fund has initiated new positions in several companies, including Bharat Electronics Limited (0.05% of AUM), Bharti Airtel Limited (0.04%), and Hindalco Industries Limited (0.03%), among others. This indicates the fund’s proactive approach to identifying and investing in emerging opportunities.
| May-24 AUM is Rs 66,383.8 crore | |
| Company | % of AUM |
| Bharat Electronics Limited | 0.05% |
| Bharti Airtel Limited | 0.04% |
| Hindalco Industries Limited | 0.03% |
| Hindustan Copper Limited | 0.02% |
| Tata Motors Limited DVR | 0.02% |
| Bharat Heavy Electricals Limited | 0.01% |
| Titan Company Limited | 0.01% |
| IDFC Limited | 0.01% |
| DLF Limited | 0.01% |
The fund has increased its holdings in ITC Limited from 5.01% in April 2024 to 5.45% in May 2024, reflecting a 0.44% increase. Similarly, holdings in Coal India Limited rose from 4.93% to 5.35%, and HDFC Bank Limited saw an increase from 8.06% to 8.42%. These increases indicate the fund’s growing confidence in these companies’ potential.
Conversely, the fund has reduced its holdings in Maruti Suzuki India Limited from 5.54% to 5.16%, and in Motilal Oswal Financial Services Limited from 2.71% to 2.33%. These adjustments reflect strategic rebalancing based on market conditions and company performance.
The Parag Parikh Flexi Cap Fund is designed for investors with a long-term horizon, ideally a minimum of five years. The fund aims to generate long-term capital growth through an actively managed portfolio of equity and equity-related securities. It is well-suited for investors who view stock market corrections as opportunities and treat purchasing stocks akin to buying into businesses.
However, this fund may not be appropriate for investors who monitor mutual fund NAVs daily, consider long-term to be a year or two, or seek excitement from their investments. It is also unsuitable for those who fear stock market volatility or are impressed by complex mutual fund products.
Conclusion
The Parag Parikh Flexi Cap Fund has demonstrated exceptional performance over the past 11 years, turning a Rs 10,000 monthly SIP into Rs 43.50 lakh. Its strong returns, strategic holdings, and proactive investment approach make it an attractive option for long-term investors. However, potential investors should consider their risk tolerance and investment horizon before committing.
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Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. The information is based on various secondary sources on the internet and is subject to change. Please consult with a financial expert before making investment decisions.
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