Fund Pick: Parag Parikh Flexi Cap Fund rewards investors who don't blink

10 years of methodical stock selection proves patience isn't passive - it's profitable

Launched in May 2013, Parag Parikh Flexi Cap Fund has stayed in the top 30th percentile of the flexicap category of the Crisil Mutual Fund Ranking (CMFR) for three straight quarters up to June 2025. Its assets under management climbed to ₹1.1 trillion in June 2025, from ₹22,324 crore in June 2022 — a fivefold jump in three years. 

The fund has been helmed by Rajeev Thakkar and Raunak Onkar since its inception, with Rukun Tarachandani joining in May 2022, Mansi Kariya in December 2023, and Raj Mehta, Tejas Soman, and Aishwarya Dhar in September 2025. 

The investment objective is straightforward: build long-term capital growth through a mix of equities and equity-linked instruments across market capitalisations. 

Returns that speak 

The fund has outpaced both its benchmark (Nifty 500 TRI) and the flexicap category average across one-, two-, three-, five-, seven-, and 10-year trailing periods. 

A one-time investment of ₹10,000 at launch on May 24, 2013 (the inception date of the fund), would have grown to ₹85,396 by September 25, 2025, translating into an annualised return of 18.97 per cent. In comparison, the same investment in the category and benchmark would have grown to ₹61,431 (15.84 per cent) and ₹56,503 (15.06 per cent), respectively. 

A systematic investment plan (SIP) is a disciplined mode of investment in mutual funds through which one can invest a certain amount at regular intervals.

 

For SIP investors, a ₹10,000 monthly contribution over 10 years — ₹12 lakh in total — would now be worth ₹32.12 lakh, or 18.84 per cent annualised return, on September 25, 2025. The benchmark SIP would have grown to ₹24.25 lakh (13.58 per cent).

 

The anatomy of the fund

 

In the past three years, the fund has leaned heavily on largecap stocks, which made up an average of 58.6 per cent of its portfolio. Midcaps and smallcaps accounted for 5.1 per cent and 5.6 per cent, respectively, while non-equity assets formed the balance 30.7 per cent.

 

By contrast, the category average allocation stood at roughly 61 per cent to largecaps, 18 per cent to midcaps, and 14 per cent to smallcaps, with non-equity allocation higher than that of its peers.

 

The portfolio is diversified across 18 sectors. Financial services dominate with a third of the allocation (33.4 per cent), followed by automotive (6.4 per cent), fast-moving consumer goods (6.2 per cent), information technology (6.1 per cent), and oil, gas and consumables (5.9 per cent).

 

During the review period, the fund held 108 stocks. Bajaj Holdings & Investment, Motilal Oswal Financial Services, HCLTech, ITC, and Multi Commodity Exchange of India were among the top contributing stocks to the portfolio.