Parag Parikh Flexi Cap Fund is one of the most popular funds in the Flexi Cap category. But you haven’t performed recently? Why is the Parag Parikh Flexi Cap Fund not performing? What should you do?
Parag Parikh Flexi Cap’s poor performance can be explained by its portfolio and strategy.
Check out the Parag Parikh Fund. Value Research Online
![Parag Parikh Flexi Cap In Stock](https://www.bemoneyaware.com/blog/wp-content/uploads/2023/01/parag-parikh-flexi-cap.jpg?x74955)
Parag Parikh Flexi Cap In Stock
Portfolio of Parag Parikh Flexi Cap Fund
The strong performance was due to the portfolio’s exposure to the US market, which is now one of the reasons for the downturn.holding high-tech stocks such as Microsoft, Alphabet, Amazon, Facebook It’s certainly hurt recent returns, and the decline in these stocks has been steep, too. In addition, SEBI has restricted Indian mutual funds from investing in stocks listed on foreign exchanges, which has negatively impacted fund performance as they are unable to purchase declining Tech Stocks.
Its domestic portfolio is predominantly large-cap oriented, with stock selections such as HDFC, Bajaj Holdings, Power Grid, Hero Moto Corp, Coal India and IEX flat or declining year-to-date. Many pharmaceutical stocks have also weighed on returns. There is an ITC that made a big profit in 2022.
Strategy of Parag Parikh Flexi Cap Fund
The fund employs a long-term buy-and-hold strategy, choosing stocks with sound fundamentals and attractive valuations. We have a low churn rate in our portfolio, including derivatives trading. Portfolios are highly concentrated, with the top 10 stocks often representing 60-65% of the overall weight.
Comparison with other flexicap funds
Most FlexiCap funds are not doing well. The outlier is the HDFC Flexi Cap fund. However, the HDFC fundhouse was at the bottom of the inflow chart for the 2021-22 fiscal year.But worthy investment style Investors should be aware of the style of fund managers and look at performance over the market cycle, rather than redeeming funds on short-term underperformance.
The performance of the Parag Parikh Fund is relatively good.Better downside protection than indexes and peers
![Comparing Flexi-Cap Funds](https://www.bemoneyaware.com/blog/wp-content/uploads/2023/01/flexi-cap-funds-compare.jpg?x74955)
Comparing Flexi-Cap Funds
Should I continue to invest in the Parag Parikh Flexi Cap Fund?
Fund performance comes and goes. The cost stays forever.
Remember No particular investment style will work consistently over the long term. There is also the potential for prolonged cycles of underperformance in any of these investment styles.The investment style of the Para Parik Flexicap Mutual Fund is currently not working
DO NOT GO TO REDEMPTION.. UNLESS YOU NEED THE MONEY NOW!
Looking for exposure to US stocks? Article Details International Mutual Funds: What Are They, Pros And Cons, Taxes
Do you want exposure to US equities but want capital gains in an Indian mutual fund? If so, the Parag Parikh Flexi Cup Fund is still a good choice.
![How to tax foreign investment in Indians](https://www.bemoneyaware.com/blog/wp-content/uploads/2023/01/how-foreign-investments-are-taxed.jpg?x74955)
How to tax foreign investment in Indians
Is there an alternative to the Parag Parikh Flexicap Mutual Fund?
“The mutual fund industry is riddled with exaggerations, misinformation, and a plethora of frivolous information. It’s an industry that embraced the gimmick and rejected the substance of the investment. ”
As John C. Bogle said in TCommon Sense Investing Booklet: The Only Way to Guarantee Your Fair Share of Stock Market Returns
All investments are common sense. Owning a diversified stock portfolio and holding it for the long term is a winner’s game. Trying to beat the stock market is theoretically a zero-sum game (every winner has a loser), but when the real cost of investing is subtracted, it becomes a loser’s game. . It is common knowledge and history proves that the simplest and most efficient investment strategy is to buy and hold all publicly traded companies in the country at very low cost. A classic index fund that owns this market portfolio is the only investment that guarantees a fair share of stock market returns.
book details The Common Sense Investing Booklet by John Bogle here
- Fund returns are different (much lower) than investor returns.
- Money flows into the fund when performance is good, and flows out of the fund when performance is poor.
- Do not select winning funds based on past performance.
- Yesterday’s winner, tomorrow’s loser.
- Buying a fund based purely on past performance is one of the stupidest things an investor can do.
- Equity funds lag the market because of costs. Fund investors receive less than half of the fund’s return on equity. why? Unproductive market timing and unfavorable funding choices.
Hence John Bogle suggests!
Emotions don’t have to enter the equation. Own the entire stock market and do nothing. Remember to do nothing.
Best Mutual Funds of 2023
You can read our article Best Mutual Funds of 2023
- Mutual funds that have provided good returns in the past may not provide good returns in the future: Examples Axis BlueChip, Paragh Parikh Flexi Cap
- Most active mutual funds these days can’t beat index funds.
- Small cap index funds have failed to generate returns above large cap index levels.
- In index fund shortlisting, keep an eye on expense ratios and error ratios.
![Best Mutual Funds of 2023](https://www.bemoneyaware.com/blog/wp-content/uploads/2022/11/best-mutual-funds-2023.jpg?x74955)
Best Mutual Funds of 2023
We recommend building a portfolio within your stock portfolio that:
- 50% Large Cap Index + 20-30% Nifty Next 50/Active Midcap Funds+20-30% Flexi Cap Funds/Hybrid Funds + 5% in Gold
- 50% Large Cap Index + 30% Nifty Next 50/Active Midcap Funds + 20% Flexi Cap Funds + 5% in Gold
- 50% Large Cap Index + 20% Nifty Next 50+30% Hybrid Funds + 5% Gold
- 50% Large Cap Index + 20% Nifty Next 50% + 30% FlexiCap Fund + 5% Gold
- But my favorite is 75% index and about 20% flexicap + 5% gold.
Related article:
Have you invested in Parag Parikh Flexi Cap Fund? What are you doing about your investment in Parag Parikh?