Aspire Market Guides


The Parag Parikh Flexi Cap Fund (PPFCF) factsheet for December reveals the addition of two new companies to its portfolio. A highly popular fund, PPFCF stands out for its exposure to overseas stocks and the size of its Assets Under Management (AUM). It is one of the top-performing funds in the flexi-cap category.

PPFCF is a flexi-cap mutual fund scheme designed to help Indian investors diversify their portfolios internationally. This open-ended equity-oriented scheme invests across large-cap, mid-cap, and small-cap enterprises, maintaining the flexibility to allocate a minimum of 65% to Indian equities and up to 35% to overseas equity securities, as well as domestic debt or money market instruments.

As of December 2024, the fund’s total AUM stood at Rs 87,539.41 crores. PPFCF held 21.33% of its portfolio in cash holdings, debt and money market instruments, and arbitrage positions, allowing it to deploy these funds into long-term investments when appropriate opportunities arise.

The fund house has consistently communicated its strategy of holding cash when market opportunities are unattractive, rather than being fully invested. During such periods, the fund focuses on arbitrage opportunities in the cash and futures equity markets, as well as special situations arbitrage, such as open offers, delisting, or merger events. Additionally, funds are parked in money market and debt securities while awaiting deployment in core equity investments.

As of December 31, 2024, the Net Asset Value (NAV) for PPFCF’s Regular Plan was Rs 80.7436, while the NAV for the Direct Plan was Rs 87.6730. The expense ratio was 1.33% for the Regular Plan and 0.63% for the Direct Plan.

The fund’s total allocation to international stocks constituted 12.82% of its AUM, with exposure to four major foreign stocks: Microsoft Corporation (3.02%), Alphabet (3.48%), Amazon (2.94%), and Meta Platforms (3.38%).

Among its Indian holdings, the top five companies were HDFC Bank Limited, Bajaj Holdings, Power Grid Corporation of India, Coal India and ITC. The December factsheet shows new stocks added to the PPFCF portfolio as Mahindra & Mahindra (1.99%) and Narayana Hrudayalaya (0.19%).

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For the year ending December 2024, the fund delivered a 1-year return of 23.70%, outperforming the Nifty 500 (16.10%) and the Nifty 50 (10.00%). Since its inception on May 24, 2013, PPFCF has achieved a Compound Annual Growth Rate (CAGR) of 19.70%, compared to 13.96% for the Nifty 50. Over the past decade, the fund has generated a return of approximately 17.47%.

Investors seeking a flexi-cap fund with a significant AUM and exposure to international markets may find the Parag Parikh Flexi Cap Fund an attractive option for long-term investment.





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