Parag Parikh Flexi Cap Fund
Parag Parikh Flexi Cap Fund is a diversified equity scheme. Its investment universe is not restricted by any self-imposed limitations in terms of sector, market capitalization, geography, etc.
However, an average of 65% of its corpus will be invested in listed Indian equities, in order to benefit from the favorable Capital Gains tax treatment accorded to such schemes.
The domestic portion of Parag Parikh Flexi Cap Fund will be managed by Mr. Rajeev Thakkar, while Mr Raunak Onkar manages the foreign investment component. Mr Raj Mehta is responsible for the ‘fixed income’ investment component.
|Fund House||PPFAS Mutual Funds|
|Category||Equity : Flexi cap|
|Status||Open Ended Schemes|
|Assets (as on 2-09-2021)||13,187cr|
(A) Returns Generated by the fund as on 2-09-2021
(B) Risk Measures as on 2-09-2021
(C) Basic Details
|Minimum Application Amount||New Purchase: ₹ 1,000;|
Additional Purchase: ₹ 1,000;
Monthly SIP: ₹ 1,000;
Quarterly SIP: ₹ 3,000
|Entry Load||Not Applicable|
|Exit Load||(a) 2.00 % if the investment is redeemed or switched on or before 365 days from the date of allotment of units|
(b) 1.00 % if the investment is redeemed or switched after 365 days but on or before 730 days from the date of allotment of units.
(c) No Exit Load will be charged if investment is redeemed or switched after 730 days from the date of allotment of units.
(D) Portfolio of the fund
(E) Tax Benefits of investing in this fund
- Long term capital gains (LTCG) tax @10% (plus surcharge, if applicable and cess) without indexation if units held for more than 12 months.
- Short term capital gains (STCG) tax @ 15% (plus surcharge, if applicable and cess) if units are held for less than 12 months.
- Investor does not pay any tax on dividends but a Dividend Distribution Tax (DDT) is deducted at source @11.648% (10% + 12% surcharge + 4% Health & education cess) **.
- # Capital gain accrued up to January 31st 2018 is exempt from LTCG tax in respect of units acquired before January 31, 2018 & redeemed on or after April 1, 2018. ** The DDT is to be paid by the mutual fund.
(F) Fund Mangers
(i) Rajeev Thakkar – Chief Investment officer and Equity Fund Manager
- Having commenced his career in 1994, he possesses wide-ranging experience in the field of financial services. These include – Investment banking, managing fixed income portfolios, broking operations and Portfolio Management Services (PMS) operations.
- He joined PPFAS Limited in 2001 and besides serving as a Fund Manager for its PMS, also earned the post of Chief Executive Officer, which he held until 2012.
- He currently serves as Chief Investment Officer of PPFAS Mutual Fund.
- Education Qualification
- B. Com (Bombay University), Chartered Accountant, CFA Charter Holder and Grad ICWA.
(ii) Raunak Onkar – Dedicated Fund Manager for overseas investments
- He manages the overseas investment of the scheme since it’s inception ie. May 2013.
- Also he has more than 10 years of experience in the capital market. Raunak started his career with Parag Parikh Financial Advisory Service Limited, following his internship, in the year 2009. Later joined PPFAS as a research analyst. He is working with the company as an Associate Fund Manager.
- Educational Qualifications
- Bsc. IT (Bombay University) and MMS- Finance (Bombay University).
(iii) Raj Mehta – Debt Fund Manager
- Beginning his career as an intern with PPFAS Mutual Fund in 2012, Raj swiftly moved up the ranks, and is currently part of the Fund Management team.
- Apart from being a Commerce graduate from University of Mumbai (N.M. College), he is also a Fellow Member of Institute of Chartered Accountants of India (ICAI) and a CFA Charter Holder. He has also earned a Certificate for the ‘NSE Debt Market Module’ issued jointly by FIMMDA and NCFM.
- Educational Qualifications
- B.Com, M.Com (Mumbai University), Chartered Accountant, CFA Charter Holder.
(G) Know more about Flexi-cap funds ?
Flexi-cap funds are those mutual funds which invest in equity and equity-rated securities of companies in a flexible manner across market capitalization such as small-cap, mid-cap and large-cap. These funds are open-ended, dynamic equity funds and have to invest a minimum of 65% of total assets in equity and equity related securities.
By investing in such funds, investors can probably mitigate their risks and lower volatility.
(H) Is it good to invest?
These funds provides investors the dual advantage of not only investing in the best-performing companies but also the option to exit from the unattractive firms. As if the fund manager observes that a particular market segment in which he had invested has turned out to be unattractive over a period of time, then the fund manager can change the allocation to some other lucrative and alternative segment.
Market capitalisation plays a crucial role while selecting firms to invest in by the mutual fund houses. One cannot always make a decision purely based on market capitalisation as other factors such as a company’s growth potential, track record, associated risks, etc., also matter a lot. As these funds invest across the market cap segments, they offer both growth and value to investors at the same time, striking a balance between risk and volatility in a single portfolio.
(I) Suitable for?
- Flexi-cap funds are generally suitable for investors who are willing to invest their money for a period of 5 or more years to meet their long term financial goal.
- One can expect returns that beat the inflation rates and higher than that of the fixed income options.
- Owing to its flexible nature, it attracts the attention of investors and emerged as the second largest equity mutual fund category after large cap funds.
(J) Who Should Invest?
- Investors who like to build an equity portfolio that invests in quality firms which have a potential to generate value over a long period of time could opt for the same.
- Though it has the flexibility and best risk adjusted returns, investors should also keep in mind the possible ups and down in their investments.
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References: valueresearchonline.com, Industry’s Publications, News Publications, Mutual Fund Company.
Disclaimer: The report only represents personal opinions and views of the author. No part of the report should be considered as recommendation for buying/selling any stock. Thus, the report & references mentioned are only for the information of the readers about the industry stated.