Best Parag Parikh Flexi Cap Funds: 2024, Invest with MySIPonline

Flexi Cap Dominance

On May 28, 2013, the Parag Parikh Flexi Cap Funds was launched.

The fund’s Assets Under Management (AUM) was at 54.46 crore as of January 3, 2024. As of January 4, 2024, the Nett Asset Value (NAV) of the Parag Parikh Flexi Cap Fund is 65.3502.

Examine the outstanding performance of the Parag Parikh Flexi Cap Funds to learn how it routinely outperforms its peers and benchmarks in the dynamic flexi cap category.

Investigate the fund’s strategic advantage, which distinguishes it as a market leader.

Exceptional Performance Over Seven Years

Investors that stayed invested in the fund for a continuous seven-year period were rewarded with outstanding returns.

Even across the worst periods of these seven years, the fund provided a minimum return of 14%. This outstanding performance much outperforms the benchmark, the Nifty 500 TRI, which has produced comparatively lower returns of 8%.

This indicates the fund’s hard work and ability to outperform market benchmarks over a long period of time.

With the idea of creating a tailored version of the PPFAS Flexi Cap Fund.

The idea calls for this modified version’s performance to be matched with those of the Nasdaq and Nifty 500 indices.

This novel approach allows investors to mimic the fund’s performance, providing a unique and flexible investment opportunity.

According to the blog, by replicating the behavior of these indices, investors may be able to develop a strategy that matches with their specific financial goals and tastes.

This personalized version notion introduces an exciting layer of flexibility and adaptability to the investment landscape, allowing investors to modify their approach based on market conditions and personal preferences.

Investment Strategy

As an equity fund, the fund’s investing strategy requires a large commitment, with at least 65% of its assets dedicated to domestic stock.

This strategic allocation reflects the fund’s primary focus on domestic equities.

The fund manager has the ability to distribute the remaining 35% of assets among a range of investments, including debt instruments and international stocks, adding another layer of flexibility.

This adaptability enables the fund to respond to changing market conditions and capitalize on a variety of opportunities throughout the financial environment.

The fund’s consistent commitment to international exposure is an important part of its strategy.

Since its foundation, the company has maintained a minimum allocation of 20% to international interests, demonstrating a purposeful approach to global diversification.

This overseas allocation highlights the fund’s intention to pursue opportunities outside of home markets, potentially improving portfolio resilience and returns.

In summary, the investment strategy of the Parag Parikh Flexi Cap Fund combines a significant commitment to domestic equities. With a prudent allocation to varied assets, including overseas securities.

This sophisticated approach illustrates the fund’s agility and commitment to producing strong performance in a variety of market environments.

Benchmarking Analysis

Given the fund’s significant allocation to international companies (about 28%), aligning its performance with the NIFTY 500 benchmark may not be appropriate.

As a result, a more acceptable benchmarking approach of 65% allocation to the Nifty 500 and 35% allocation to the Nasdaq 100 is advocated.

This purposeful change accommodates the fund’s ongoing investment in large firms such as Microsoft, Facebook, and Alphabet, ensuring a more accurate representation of its performance in relation to market dynamics.

Divergence in Approach

The approach of the Parag Parikh Flexi Cap Fund differs significantly from that of an index fund. Although its performance is similar to that of the 65-35 benchmark index (which includes the Nifty 500 and Nasdaq 100)

The fund adopts a unique approach.

Unlike an index fund, which duplicates the full portfolio of stocks in the benchmark. This fund maintains a more focused portfolio of 25-30 stocks.

These equities are not necessarily the most heavily weighted among Nifty 500 and Nasdaq 100 businesses, highlighting the fund’s industry and capitalization-agnostic approach.

The NAV and Parag Parikh Flexi Cap Fund Performance

NAV of Parag Parikh Flexi Cap reflects market value of its portfolio, includes mix of large-cap, mid-cap, and small-cap stocks.

Investors can track the NAV to observe how the fund’s investments are performing collectively.

A rising NAV indicates growth in the fund’s assets, while a declining NAV may suggest a decrease in overall value.

Analyzing NAV trends over different periods provides valuable insights into the fund’s consistency and performance across market conditions.

The current NAV of Parag Parikh Flexi cap is  Rs. 65.2327.

Conclusion

The Parag Parikh Flexi Cap Fund, routinely outperforms its benchmark and rivals in the flexi cap category.

Investors on mysiponline have had remarkable minimum returns of 14%, exceeding the benchmark’s 8% over a seven-year period.

Mysiponline customers drawn to the fund’s unusual promise of generating a personalized version that mirrors the Nasdaq and Nifty 500 indices.

Its investment strategy exhibits a well-balanced approach for investors. With a 65% allocation to domestic equities and a constant 20% allocation to overseas stock.

A strategic shift, appropriate benchmark (65% Nifty 500, 35% Nasdaq 100) is advocating, which aligns smoothly with  fund’s management strategy.

The concentrated portfolio of 25-30 stocks emphasizes a sector and capitalization-agnostic strategy, distinguishing it from traditional index funds and making it a tempting choice for consumers.

The Parag Parikh Flexi Cap Fund not only establishes, itself as a strong performance. It also demonstrates a distinct and actively managed Systematic Investment Plans approach. It as a notable player in the mutual fund landscape for investors.