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Friday, April 12, 2024

Parag Parikh Flexi Cap Fund Assessment 2024

Allow us to do the Parag Parikh Flexi Cap Fund Assessment 2024. How has the fund carried out since its inception from 2013 to now in comparison with its benchmark Nifty 500 TRI?

Amongst energetic funds, I too really useful this fund for “High 10 Greatest SIP Mutual Funds To Make investments In India In 2024“. Therefore, I believed allow us to assessment this fund.

Historical past of Parag Parikh Flexi Cap Fund

Parag Parikh Flexi Cap Fund Review 2024

The sooner title of Parag Parikh Flexi Cap Fund was Parag Parikh Lengthy Time period Fairness Fund. This fund was launched on twenty eighth Might 2013. In the course of the launch, the benchmark was CNX 500. Now it’s Nifty 500 TRI. The expense ratio of the fund when launched was 2% for direct funds. The present expense ratio is 0.56%. The present AUM of this fund is Rs.58,900.51 Crore.

The change in title occurred primarily due to the SEBI reclassification of the funds. The usual deviation of the fund is presently at 11.34%. Portfolio turnover for fairness portfolio (together with arbitrage place) is 29.7%.

The home fairness portion of the scheme can be managed by Mr. Rajeev Thakkar (he has been a fund supervisor since inception) and Mr. Rukun Tarachandani, whereas Raunak Onkar manages the international funding element. Raj Mehta is liable for the ‘mounted earnings’ funding element.

Who can put money into the Parag Parikh Flexi Cap Fund?

Why I like this fund home is principally for the readability of information and disclosure accessible on their web site. We no must search for one other web site for information churning or to get readability. One such info is disclosure of who can make investments and who can’t make investments on this fund.

The wordings defined are as beneath.

“This scheme is just appropriate for ‘true’ long-term buyers….

Nonetheless, in case you are an investor:

  • Who is aware of the perils concerned in instantaneous gratification
  • For whom the time period ‘long run’ means a minimal interval of 5 years.
  • Who will get excited somewhat than repelled, when inventory costs and valuations are low.
  • For whom buying a inventory isn’t any totally different from buying a enterprise.

Then we urge you to associate with us, as this scheme has been designed with you in thoughts.

We are going to observe a easy (although not simplistic) funding course of. As we won’t pay mere lip service to worth investing, it could imply that usually we can be buying companies which might be going by way of a painful section and are subsequently unloved. Every of them will blossom at totally different factors and that’s the reason, there could also be prolonged durations when you could really feel that ‘nothing is occurring’. Whereas some might regard us as boring, we’re adamant that we are going to by no means sacrifice prudence for the sake of offering pleasure.

Additionally, the fund managers will try and revenue from numerous cognitive and emotional biases displayed by corporations and market contributors. In different phrases, together with the dissection of economic statements, there may even be an overlay of the research of human feelings.

Additionally, having sturdy conviction within the precept of compounding, we are going to provide our buyers solely the ‘Progress Choice” and never the ‘Dividend Choice’.

This scheme will not be for you if…
  • You monitor mutual fund Web Asset Values each day.
  • To you, the time period ‘Lengthy Time period” is merely a yr or two.
  • You imagine that investing ought to be ‘thrilling’
  • You concern, somewhat than welcome, inventory market volatility
  • You imagine you might have the power to time the market
  • You might be impressed by fund managers who profess to be magicians
  • You like complicated mutual fund merchandise to easy ones.
  • You rely on periodic earnings within the type of mutual fund dividends

This offers extra readability of whether or not you must contemplate this fund or not.

Present Portfolio Of Parag Parikh Flexi Cap Fund

At present, the fund is holding round 71.66% in fairness, 0.64% in fairness arbitrage, abroad shares of 15.39%, and Debt and Cash Market devices of 9.28% (inclusive of CDs, T Payments, and CPs). The present money and money equal holding is 8.94%.

Sectorwise publicity of this fund is – Banking – 19.61%, IT – 12%, Finance – 7.3%, IT Software program – 7.3%, and Capital Markets – 7.24%.

Parag Parikh Flexi Cap Fund Assessment 2024

Allow us to transfer on to know the efficiency metrics of this fund. As I discussed above, the AMC web site clearly discloses the efficiency metrics and therefore it’s simple for anybody to evaluate and no brainer is required right here. Nonetheless, I believed to make use of my very own information crunching because the PPFAS web site exhibits information just for common fund NAV. Therefore, I used the information of direct fund NAV and tried my greatest to look into the efficiency.

Because the fund launched on twenty eighth Might 2013, now we have round 2,700+ day by day information factors to do our analysis with the corresponding Nifty 500 TRI Index

What if somebody invested Rs.1 lakh in Parag Parikh Flexi Cap Fund Vs Nifty 500 TRI?

If somebody invested Rs.1 lakh on the launch date of twenty eighth Might 2013 in each Parag Parikh Flexi Cap Fund and Nifty 500 TRI, then the result’s as beneath.

Lump Sum Investment of Rs.1,00,000 in both Parag Parikh Flexi Cap Fund Vs Nifty 500 TRI

You seen the large outperformance post-2020 market crash between Parag Parikh Flexi Cap Fund and Nifty 500 TRI. The ultimate values are Rs.7,67,347 for Parag Parikh Flexi Cap Fund and Rs.4,92,214. Virtually round 35% return distinction!! Nonetheless, allow us to not decide with this lump sum motion.

Drawdown of Parag Parikh Flexi Cap Fund Vs Nifty 500 TRI

This can be a measure of how a lot the Parag Parikh Flexi Cap Fund and Nifty 500 TRI have fallen from all-time earlier highs.

Drawdown of Parag Parikh Flexi Cap Fund Vs Nifty 500 TRI

You seen that as much as the 2020 interval, the fund has a implausible drawdown in comparison with the Index. Nonetheless, the identical will not be managed post-2020. A barely greater drawdown has been seen in recent times. This can be a little little bit of a priority. In any other case, the fund has a decrease drawdown in comparison with the benchmark.

Parag Parikh Flexi Cap Fund Vs Nifty 500 TRI 1 Yr Rolling Returns

Allow us to now transfer on to the understanding of rolling returns. Therefore, allow us to begin with 1-year rolling returns.

Parag Parikh Flexi Cap Fund Vs Nifty 500 TRI  1 Year Rolling Returns

You seen that for a lot of durations, the fund has outperformed the index.

Fund Common Returns – 21.3% and Benchmark Common Returns – 16.6%

Fund Max Returns – 100% and Benchmark Max Returns – 100%

Fund Min Returns – -17.6% and Benchmark Max Returns – -30.3%

Parag Parikh Flexi Cap Fund Vs Nifty 500 TRI 3 Years Rolling Returns

Allow us to look into the three years rolling returns efficiency.

Parag Parikh Flexi Cap Fund Vs Nifty 500 TRI  3 Years Rolling Returns

For the 3-year rolling returns interval, the fund is doing fantastically in comparison with the benchmark for a few years.

Fund Common Returns – 18.9% and Benchmark Common Returns – 14.2%

Fund Max Returns – 37.6% and Benchmark Max Returns – 33.5%

Fund Min Returns – 0.74% and Benchmark Max Returns – -6.3%

Parag Parikh Flexi Cap Fund Vs Nifty 500 TRI 5 Years Rolling Returns

Allow us to now examine the 5-year rolling returns outcomes.

Parag Parikh Flexi Cap Fund Vs Nifty 500 TRI  5 Years Rolling Returns

For five-year rolling durations additionally, you possibly can simply visualize the fund’s outperformance to its benchmark.

Fund Common Returns – 17.6% and Benchmark Common Returns – 12.7%

Fund Max Returns – 25% and Benchmark Max Returns – 21.1%

Fund Min Returns – 4.09% and Benchmark Max Returns – -1.06%

I skipped evaluating 10-year rolling returns as we don’t have that a lot of information factors.

Conclusion – General the fund has carried out fantastically since launch. Nonetheless, do do not forget that that is an energetic fund. Therefore, sooner or later, if the fund underperforms, then you need to not be stunned. Additionally, one among extra largest dangers is an excessive amount of reliance on the fund supervisor Mr. Rajeev Thakkar. If he strikes out then the fascinating factor to note is the way it will carry out. Such dangers are all the time there if you select the energetic funds. Another reason for its spectacular efficiency could also be resulting from its abroad inventory holding.

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