The Parag Parikh Fund has more over ₹1 lakh billion in assets under management.
A New Era in the History of Indian Mutual Funds
Parag Parikh Flexi Cap Fund (PPFCF) has crossed ₹1 lakh crore in AUM, marking a major achievement in India’s mutual fund sector. This milestone demonstrates how the PPFAS Mutual Fund’s philosophy, consistent long-term performance, and rigorous investment approach have gained investors’ ongoing trust under the leadership of Neil Parikh, CEO.
The crossing of the ₹1 lakh crore threshold makes PPFCF one of the largest actively managed equity mutual funds in the country, placing it in an elite league of top-performing schemes that have gained immense traction among both retail and institutional investors.
A Decade of Growth and Stability
Launched in May 2013, the Parag Parikh Flexi Cap Fund started with a unique philosophy that combined long-term value investing with a global perspective. Over the past decade, the fund has grown from a modest AUM to over ₹1,00,000 crore, reflecting not only market performance but also strong inflows from investors.
Unlike traditional funds that primarily invest in domestic equities, PPFCF adopted a multi-asset, multi-geography strategy early on. The fund invests not only in Indian large-cap, mid-cap, and small-cap equities but also selectively in international equities like Alphabet (Google), Microsoft, Meta, and Amazon, adding diversification to its portfolio.
Strong Returns and Robust SIP Growth
The fund has built its reputation on consistent, long-term outperformance. Since inception, it has delivered an annualized return of over 19%, making it one of the best-performing funds in the flexi-cap category. This performance has attracted investors looking for stability, transparency, and sustainable wealth creation.
One of the fund’s most talked-about statistics is its Systematic Investment Plan (SIP) performance. A ₹10,000 monthly SIP invested since inception would have grown to approximately ₹42.8 lakh by March 2025, translating to over 20% annualized returns—a figure that far exceeds most market peers.
Neil Parikh’s Visionary Leadership
Much of the credit for PPFCF’s success goes to Neil Parikh and his team at PPFAS Asset Management. Staying true to the investing principles of late Parag Parikh, the fund has emphasized value investing, low churn, and investor transparency.
The fund has a relatively concentrated portfolio with a long-term horizon, which sets it apart in an industry where frequent rebalancing is common. Under his guidance, the fund also practices skin in the game—the fund managers invest their personal wealth in the same schemes, aligning their interests with those of retail investors.
Transparent, Conservative, and Risk-Aware
Another distinctive aspect of PPFCF is its transparency. The fund publicly discloses portfolio holdings and detailed commentaries, helping investors understand the rationale behind investment decisions.
In addition, the fund’s conservative approach to risk has played a major role in its appeal. For example, it has maintained a relatively low allocation to small-caps and high-beta stocks, preferring to focus on companies with strong balance sheets, sustainable cash flows, and long-term growth potential.
This conservative stance proved beneficial during volatile periods such as the COVID-19 market crash in 2020 and subsequent corrections. PPFCF weathered these events with limited drawdowns and quickly regained ground—building investor confidence.
Diversified Yet Focused Portfolio
PPFCF maintains a core-satellite approach to portfolio construction. The core portfolio consists of dominant, well-established companies in India and abroad, while the satellite portion explores emerging opportunities.
As of March 2025, the fund held stocks like ITC, HDFC Bank, Bajaj Holdings, Hero MotoCorp, and international giants like Alphabet and Meta Platforms. Additionally, a portion of the portfolio remains in fixed income instruments and arbitrage opportunities to manage short-term volatility and provide liquidity.
Challenges Ahead and Managing a Growing Corpus
Crossing ₹1 lakh crore in AUM is undoubtedly a proud moment, but managing such a large corpus brings its own set of challenges. As fund size increases, so do liquidity constraints, especially when investing in mid- and small-cap companies. Deploying fresh inflows without compromising on quality and valuations requires careful attention.
Neil Parikh has acknowledged these challenges but remains confident in the fund’s ability to maintain its standards and adaptability. He stressed that size will not dictate strategy; disciplined investing will continue to be the fund’s backbone.
Investor Confidence and Industry Recognition
PPFCF’s massive inflows and growing investor base are a result of the trust built over years. The fund has been recognized multiple times for performance, governance, and innovation in the mutual fund space. Financial advisors and independent analysts often cite PPFCF as an example of what consistent, long-term investing can achieve.
Many seasoned investors and HNIs (High Net-Worth Individuals) now rely on the fund as a core portfolio holding, given its diversified exposure, stable management team, and track record of delivering on investor expectations.
Conclusion
The achievement of ₹1 lakh crore AUM is more than just a number—it represents the culmination of over a decade of disciplined investing, prudent management, and an unwavering focus on investor value. In addition to growing in size, the Parag Parikh Flexi Cap Fund has become a symbol of success and confidence in the Indian mutual fund industry. With Neil Parikh at the helm, the fund appears well-positioned to navigate future market complexities while staying true to its foundational principles.
The image added is for representation purposes only
