homepersonal finance NewsParag Parikh Flexi Cap Fund crosses ₹50,000 crore AUM: Should you invest now?
Parag Parikh Flexi Cap Fund crosses ₹50,000 crore AUM: Should you invest now?
In 2023, the Parag Parikh Flexi Cap Fund demonstrated consistent outperformance against benchmarks and secured the top position in terms of inflows. The scheme witnessed inflows of ₹11,400 crore in 2023, marking 18% year-on-year (YoY) surge from ₹9,600 crore in 2022.
Parag Parikh Flexi Cap Fund, a scheme of Parag Parikh Mutual Fund, has achieved a significant milestone by surpassing ₹50,000 crore in assets under management (AUM) for the first time in December 2023. The fund's growth is highlighted by its net asset value (NAV) standing at ₹71.2789 for the direct plan and ₹66.1014 for the regular plan as of January 12, 2024.
With insider holdings at 383.28 as of December 31, 2023, the Parag Parikh Flexi Cap Fund has shown robust performance over the past three years, delivering a NAV growth of ₹71.2789 with a 0.34% increase as of January 12, 2024, according to Value Research.
The scheme, launched in May 2013, has completed over a decade.
In 2023, the Parag Parikh Flexi Cap Fund demonstrated consistent outperformance against benchmarks and secured the top position in terms of inflows.
The scheme witnessed inflows of ₹11,400 crore in 2023, marking an 18% year-on-year (YoY) surge from ₹9,600 crore in 2022. The scheme's success is underscored by its average returns of over 38% in the past year.
A look at the returns of the fund
| Metric | Return Percentage |
|---|---|
| YTD (Year-to-Date) | 1.47% |
| 1D (1 Day) | 0.34% |
| 1M (1 Month) | 3.73% |
| 3M (3 Months) | 11.91% |
| 6M (6 Months) | 18.49% |
| 1Y (1 Year) | 38.88% |
| 3Y (3 Years) | 23.74% |
| 5Y (5 Years) | 24.02% |
| 7Y (7 Years) | 21.03% |
| 10Y (10 Years) | 20.49% |
(Source: Value Research)
This achievement is particularly notable against the backdrop of the mutual fund industry's overall performance.
According to data released by the Association of Mutual Funds in India (AMFI), the mutual fund industry's assets under management reached a historic ₹50.78 lakh crore in December 2023. The total number of mutual fund folios also reached a record high of 16.49 crore, reflecting an increase from the 16.18 crore recorded in November 2023.
The retail segment, encompassing equity, hybrid, and solution-oriented schemes, saw a significant surge, with retail mutual fund folios reaching 13.19 crore in December 2023.
How does Parag Parikh Flexi Cap Fund compare with other similar funds?
| Fund Name | 1-year return (%) |
|---|---|
| Parag Parikh Flexi Cap Fund - Direct Plan | 38.88 |
| HDFC Flexi Cap Fund - Direct Plan | 34.32 |
| Franklin India Flexi Cap Fund - Direct Plan | 35.95 |
| Franklin India Focused Equity Fund - Direct Plan | 27.09 |
| DSP Flexi Cap Fund - Direct Plan | 34.97 |
(Source: Value Research)
Should one invest in the fund now?
The fund's investment strategy revolves around attaining long-term capital appreciation through a primary focus on investing in equity and equity-related instruments.
According to Value Research, this flexi-cap fund affords the fund management team the flexibility to invest in companies of different sizes, making it well-suited for investors who value flexibility in their equity investments.
It is recommended that investors contemplate a minimum investment horizon of five years, given the fund manager's autonomy to navigate through the fluctuations in the market, as suggested by Value Research.
(Edited by : Amrita)
First Published: Jan 15, 2024 11:02 AM IST
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