Archive · 23 Jul 2026
Parag Parikh Flexi Cap Fund Lags Behind
Parag Parikh Flexi Cap Fund is one of India's favorite mutual funds, known for its strong performance and value-conscious investment approach.
However, in the past year, it has underperformed compared to its peers and the market benchmark.
The fund's value-conscious strategy, which focuses on strong fundamentals and low valuation ratios, has led to a cautious approach with high cash allocation.
This has limited its short-term performance but provides a buffer during market corrections.
The fund's dominance of large-cap stocks and underperformance of some top holdings have also contributed to its lagging performance.
Despite this, the fund's long-term performance remains appealing, and it is suitable for investors with a high-risk appetite and a long-term investment horizon.
Parag Parikh Flexi Cap Fund has underperformed in the short term with a -1.7% return over the past year.
The fund's value-conscious approach and high cash allocation have limited its performance but provide a buffer during market corrections.
The fund's dominance of large-cap stocks and underperformance of some top holdings have contributed to its lagging performance.
The fund's long-term performance remains appealing, with a CAGR of 18.3% since inception.
The fund is suitable for investors with a high-risk appetite and a long-term investment horizon of at least 5 years.
- Who
- Parag Parikh Mutual Fund, managed by Rajeev Thakkar
- What
- Underperformance of Parag Parikh Flexi Cap Fund in the short term
- When
- As of 21 July 2026
- Where
- India
- Why
- Due to its value-conscious investment approach, high cash allocation, and dominance of large-cap stocks
Value Investing Approach
Growth and Momentum Investing
Investment Strategy
Value Investing Approach
Focuses on value-conscious stock picking with low valuation ratios, strong fundamentals, and a cautious approach.
Growth and Momentum Investing
Targets growth and momentum stocks to push up returns, often involving high portfolio churning.
Performance
Value Investing Approach
Has underperformed in the short term due to its value-conscious stance and high cash allocation.
Growth and Momentum Investing
Has outperformed in the short term by chasing growth and momentum stocks.
Risk Management
Value Investing Approach
Maintains a defensive stance with higher cash allocation to limit downside risk during market corrections.
Growth and Momentum Investing
Takes on higher risk by focusing on growth stocks, which can lead to higher volatility.
- Fund Name
- Parag Parikh Flexi Cap Fund
- Launch Date
- May 2013
- Assets Under Management (AUM)
- Rs 1.43 lakh crore
- CAGR Since Inception
- 18.3%
- 1-Year Return (as of 21 July 2026)
- -1.7%
- Category Median 1-Year Return
- 2.3%
- BSE 500 TRI 1-Year Return
- 0.5%
- Top Holdings
- HDFC Bank, Kotak Mahindra Bank, ICICI Bank, Bajaj Holdings & Investments, HCL Technologies, ITC, Power Grid, Coal India, Mahindra & Mahindra, Axis Bank
- Top Sectors
- Banking & Financials (26.8%), Technology (20.4%), Consumer Discretionary (8.7%)
- International Investments
- 10.6% of total portfolio