Parag Parikh Flexi Cap Fund is an open-ended equity scheme investing across market capitalizations without any allocation constraints. This fund is one of the most popular flexi cap mutual funds in India due to its stellar long-term performance and investing approach.
Benefits of Parag Flexi Cap Fund
Here are some of the key benefits of investing in Parag Parikh Flexi Cap fund:
Diversified Portfolio: The fund invests in a well-diversified portfolio of stocks across market capitalizations – large, mid and small-caps. This provides exposure to growth potential of mid and small caps along with the stability of large blue-chip companies. The fund typically holds around 20-25 stocks which aids in managing risk through adequate diversification.
High Quality Stock Picking: The fund follows a bottom-up approach to stock picking and invests in high quality businesses with competitive advantages, strong financials and excellent management. The fund derives its Alpha or excess returns through investing in such quality stocks that can outperform the markets rather than tactical asset allocation. The quality focus adds stability to the fund’s performance.
Allocate to Overseas Stocks: The fund invests in overseas stocks up to 35% of the portfolio. This provides diversification benefits and enhanced return potential by tapping into global opportunities. Exposure to sectors like technology, healthcare, consumer brands which have a higher representation in global indices can be captured.
Long Term Wealth Creation: Parag Parikh Flexi Cap Fund focuses on long term wealth creation by identifying and investing in stocks that can deliver steady compounding growth over time. The fund has consistently outperformed broader indices and benchmarks over 3-, 5- and 10-year time frames, enabling wealth creation for investors. Focus on long term helps tide over short term market volatility.
Reasonable Valuations: The stocks selected for inclusion in the portfolio are reasonably valued companies that provide a margin of safety along with future growth potential. This style of investing prudently across market cycles aids in better risk management for investors.
Experienced and Stable Fund Management: The fund is managed by Rajeev Thakkar, Raunak Onkar and Rajat Jain. Together they have over decades of experience having managed the fund since inception in 2013. The stable fund management and consistent investing philosophy has helped build trust among investors.
Flexi Cap Approach: As the name suggests, the flexi cap approach allows the fund manager the flexibility to invest across large, mid, and small cap stocks without any limitations. This enables them to cherry pick best opportunities across the market cap spectrum. The portfolio composition keeps changing dynamically based on where opportunities exist rather than any fixed allocations.
Low Expense Ratio: Parag Parikh Flexi Cap Fund and Parag Parikh Mutual Fund has among the lowest expense ratios in its category leading to higher net returns for investors. Lower costs always work to the advantage of the investor over the long term.
Conclusion
In summary, Parag Parikh Flexi Cap Fund is one of the best performing flexi cap funds that follow a focused portfolio of quality stocks selected through bottom-up research. Core attributes like quality focus, overseas exposure and long-term wealth creation orientation make it an attractive mutual fund option for investors to consider allocating a portion of their equity investments to. When looking for a good flexi cap mutual fund, Parag Parikh Flexi Cap Fund is surely one of the best choices to evaluate. Invest with trusted brands like 5paisa to enjoy a seamless mutual fund investing experience along with top notch advisory services.
