This Mutual Fund Invests In Google, Microsoft, Ticked Upto 120% Returns In 5 Years: Best Rated By Morningstar

The Indian equity market is a bit volatile now, and investors are looking forward to other opportunities to amplify their money. Investing in foreign equities can be a profitable option, as the US Dollar index fetching higher returns now. However, one can also invest in the mutual funds that are investing in the foreign equities for better returns. Here, one such Flexi-cap mutual fund SIP has been discussed. The Flexi-cap mutual funds are open-ended and dynamic mutual funds, and the fund house can select the stocks from any of the large-cap, mid-cap, or small-cap companies, without any restriction.

Parag Parikh Flexi Cap Fund - Direct Plan - Returns

This Flexi cap fund has performed much higher in the long term for SIPs. In the last 1 year SIP return (absolute return) stood at -7.28%, in the last 2 years it has fetched 12.8% returns, in the last 3 years it has given 35.5% returns, and in the last 5 years, it has fetched 59.4% returns. Annualized returns from Parag Parikh Flexi Cap Fund's SIP were 12.04% in the past 2 years, and 20.75% in the past 3 years. However, the Indian equity market has been bearish in the last year, so, this fund's annualized return has fallen by 13.19% in the past 1 year.

Parag Parikh Flexi Cap Fund's absolute mutual fund returns were reported the best in the long term. In the last 1 year return stood at 4.55%, in the last 2 years it has fetched 65.54% returns, in the last 3 years it has given 79.26% returns, and in the last 5 years, it has given 120.86% returns. In the past 2 years, the Parag Parikh Flexi Cap Fund's annualized returns stood at 28.66%, marginally higher than the category average of 25.25%. Additionally, in the past 3 years, its annualized return has been quoted at 21.46%, much higher than the category average of 13.23%.

(Data till June 24, 2022)

NAV and AUM

It is a Flexi-cap mutual fund SIP investment option that has a NAV of Rs. 46.73. With a low NAV, you can obtain a higher number of units of this fund. The Assets Under Management (AUM) of this fund are Rs. 22647.03 crore. However, the Expense Ratio (ER) of this fund is 0.79%, while the category average is 0.91%, which can be profitable for you as an investor. The Expense Ratio (ER) is the cost of owning a mutual fund or SIP, which is charged by the mutual fund house from the retail investors. It is used to manage the fund.

This above-mentioned mutual fund SIP has been best rated with 5 Star by rating agency Morningstar.

Portfolio

Parag Parikh Flexi Cap Fund's total equity holding is 90.07%, and the rest of the 9.93% is invested in other sectors. Its Indian equity holding is 66.86%, and its foreign equity holding is 23.21%. Among a total of 27 stocks, the fund's Large Cap Investments are 52.34%, Mid Cap Investments are 2.92%; Small-Cap Investments are 10.74%, and 24.07% investments are allocated to other funds. It has a good portfolio holding in the foreign equities for better profitability.

The top 10 equity holdings of the fund are ITC Limited - Cigarettes, Bajaj Holdings & Investment Ltd. - Nbfc, Alphabet Inc (foreign equity - parent company of Google), Microsoft Corp. (foreign equity), Housing Development Finance Corporation Ltd., ICICI Bank, Hero Motocorp Ltd., HCL Technologies Ltd., Amazon (foreign equity), and Axis Bank.

Other funds under this category are, JM Flexi Cap Fund - Direct - Growth, IDBI Flexi Cap Fund - Direct Plan - Growth, Edelweiss Flexi Cap Fund - Direct Plan - Growth, Union Flexi Cap Fund - Direct Plan - Growth, and Union Flexi Cap Fund - Direct Plan - Growth.

Disclaimer

Investing in equities/mutual funds/SIPs/debts poses a risk of financial losses. Investors must therefore exercise due caution. Greynium Information Technologies, and the author are not liable for any losses caused as a result of decisions based on the article.