The flexicap fund is given a five star rating by ValueResearch and Morningstar both. It had an AUM of Rs 1.40 lakh crore as of April 30, 2026 against an AUM of Rs 1.28 lakh crore in March.
If an investor made a SIP of Rs 10,000 in this fund 10 years ago, the value of this investment would have been Rs 29.25 lakh now with an XIRR of 17.02%. Similar investment made five years ago would have been Rs 8.21 lakh with an XIRR of 12.61%.
Also Read | How to rebalance mutual funds, FDs & PF investments before retirement? Expert shares roadmap
And lastly, in the last three years, the value of this investment would have been Rs 4.05 lakh with an XIRR of 8.04%.
Investment style
According to PPFAS Mutual Fund, the investment objective of the scheme is to seek to generate long-term capital growth from an actively managed portfolio primarily of equity and equity related securities.
The scheme shall invest in Indian equities, foreign equities and related instruments and debt securities and buying securities at a discount to intrinsic value will help to create value for investors; the investment philosophy is to invest in such value stocks.
What does PPFAS Mutual Fund say on the performance and investment style
Raunak Onkar, Fund Manager and Research Head: We are value conscious in our investment process. After filtering through businesses for quality of management & quality of earnings growth we are patient about participating in the opportunity. We are long term investors in the business so we only invest when we think the growth expected from the business is reasonably priced.
In the longer term this is the most important factor that has helped in driving returns. This has sometimes meant that we have to hold cash if there are no opportunities available at a reasonable price.
Domestic fund with global diversification
The fund house further mentioned that it is one of only a handful of Indian mutual fund schemes to invest in a basket of Indian and foreign stocks and listed five reasons why the fund chose to be different which includes reducing country risk, winners keep rotating, reducing portfolio volatility, wider choices, and valuations.
PPFAS Mutual Fund also mentioned that it prefers countries where stock markets are well-developed, good governance is in place, financial statements are prepared in English and stock markets are liquid. Within these countries, it seeks companies which are large, have operations in multiple countries and are reasonably valued.
According to Raunak, global diversification provides a lot of benefits to our investors, we get to participate in unique businesses which are not available in our domestic listed space, we also get a chance to invest in emerging growth areas with global market presence where Indian listed companies don’t have a presence.
He further said that valuations in many global sectors are a lot more reasonable compared to domestic businesses which gives an opportunity to buy the global peers at reasonable prices and has resulted in reducing the portfolio volatility to some extent because the global & domestic markets don’t go up or down at the same time. Since Feb 2022, we have not been able to remit more into global businesses on account of RBI limits for the entire mutual fund industry.
If an investor made a lumpsum investment of Rs 1 lakh in this fund at the time of inception, the value would have been Rs 8.29 lakh with a CAGR of 17.65%. If the same lumpsum investment was made 10 years ago, the value would have been Rs 4.83 lakh with a CAGR of 17.06%.
Also Read | Edelweiss Mid Cap and Quant Small Cap among 6 equity funds to deliver over 20% CAGR in 3,5, and 7 year horizons
A lumpsum investment of Rs 1 lakh made in this fund five years ago, the value of the investment would have been Rs 1.99 lakh with a CAGR of 14.83% whereas the same investment made three years ago would have been Rs 1.53 lakh with a CAGR of 15.44%.
Based on the trailing returns, the short term performance of the fund was on the lower side compared to its benchmark and category average but the long term performance was over and above the benchmark and category average.
In the last three months, the fund delivered a negative performance of 2.14% compared to a loss of 2.21% by the benchmark and a negative average return of 1.31% by the category. In the last six months, the fund gave a negative return of 4.59% compared to negative return of 4.17% by the benchmark and a negative average return of 3.94%.
The flexicap fund was down marginally 0.01% in the last one year whereas the benchmark posted 0.92% gain and the category average was 0.92%. In the last three years, the fund posted a gain of 15.43% compared to 14.47% by the benchmark and 14.13% as the category average. In the last five years, the fund delivered a return of 14.93% against 13.08% by the benchmark and 12.47% as the category average. Since its inception, the fund delivered a CAGR of 17.66%.
How an analyst decode the performance of Parag Parikh Flexi Cap Fund
Rajesh Minocha, a Certified Financial Planner (CFP), Founder of Financial Radiance analysed the performance of this largest flexicap fund and shared with ETMutualFunds that PPFAS Asset Management’s Parag Parikh Flexi Cap Fund has delivered strong, consistent performance over the past 13 years, particularly across various market cycles.
A SIP during this period has delivered an approximate XIRR of 17%, demonstrating the benefits of disciplined long-term investing and quality stock selection; the fund adopts a value-oriented approach, maintains a concentrated portfolio, incorporates global diversification through overseas stocks, and prioritises governance and downside protection and many investors appreciate the fund manager’s straightforward, consistent strategy, which has contributed to its position as the largest actively managed mutual fund in India, Minocha further said.
On the basis of 10 yearly returns, the fund has delivered negative returns in 2018 and 2022. The fund lost 0.43% in 2018 and 7.23% in 2022. In the last 10 calendar years, the fund delivered the highest return in 2021 of around 45.51%. Among all the flexicap funds, Parag Parikh Flexi Cap Fund did not give the highest returns in any calendar year nor lost the most.
According to the fund house, the maximum cash it can hold in the portfolio is opportunistic retention or use of Cash (upto 35%).
Different approach compared to other flexi caps
Minocha said that the fund distinguishes itself from many standard flexicap funds. Instead of aggressively pursuing momentum or shifting between sectors, it focuses on acquiring strong companies at reasonable valuations and holding them for the long term. The fund is also willing to hold cash when valuations appear high, which further distinguishes it.
He further said that due to their conservative approach, the fund falls less than others, and therefore, whenever there is a market reversal, we may see short-term growth lower than that of other funds in this category. Historically, it has maintained a relatively concentrated portfolio, guided by high-conviction investments rather than broad diversification.
Risk ratio parameters of fund
The PE and PBV ratio of the flexicap fund were recorded at 19.46 times and 3.58 times respectively whereas the dividend yield ratio was recorded at 2.38 times as of April 2026.
ETMutualFunds analysed the other key ratios of the fund in a three year period. Based on the last three years, the scheme has offered a Treynor ratio of 1.69 and an alpha of 0.43. The sortino ratio of the scheme was recorded at 0.81.
The return due to net selectivity was recorded at 0.38 and return due to improper diversification was recorded at 0.05 in the last three years.
A good option in the current market scenario?
Minocha said that flexicap funds remain a sensible core portfolio choice in the current market, as they provide flexibility to invest across large, mid, and smallcaps as valuations and opportunities change and this adaptability is valuable in volatile, uncertain markets.
He further said that for investors who prefer not to time market segments, flexicap funds offer a balanced approach, with professional managers making allocation decisions. Therefore, SIP investing in a quality flexicap fund remains a sound strategy for long-term wealth creation, despite short-term market fluctuations.
Also Read | Explained: What are REITs and how do they work? Here’s what investors should know
Others in flexi cap basket
Around 24 flexicap funds completed five years of existence in the market of which HDFC Flexi Cap Fund delivered the highest return of 17.80%, followed by Quant Flexi Cap Fund which gave 17.48% in the same category. UTI Flexi Cap Fund gave the lowest return of 6.21% in the last five years.
Way ahead for flexi cap funds
Minocha said the outlook for flexicap funds remains positive if you zoom out over the long term, the market volatility, along with valuation differences across segments, is likely to create opportunities for seasoned fund managers to dynamically allocate capital.
In practice, going forward, stock-picking and valuation discipline may matter more than broad market momentum; investors should, however, keep their return expectations moderate, given the very high returns we saw after the pandemic and instead of performance-chasing in the short run, investors should aim for long-term compounding, slowly but reliably, Minocha further said.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
If you have any mutual fund queries, message on ET Mutual Funds on Facebook/Twitter. We will get it answered by our panel of experts. Do share your questions on ETMFqueries@timesinternet.in alongwith your age, risk profile, and Twitter handle.
as a Reliable and Trusted News Source