Parag Parikh Flexi Cap Fund : Parag Parikh Flexi Cap Fund, the largest holding in international equities, has reopened for fresh investments on March 15.
The fund has invested 25-30 per cent of its corpus in foreign equities and the rest in domestic equity markets. It is very popular for giving investors international diversification in investments.
However, since the limit of mutual funds investment abroad has been met, the fund will now be able to invest only in domestic markets.
what is the scheme
Parag Parikh Flexi Cap Fund was launched in 2013. Till recently, only this scheme of the Asset Management Company is stable.
Prior to that the fund manages assets of Rs 152 crore. Today it manages Rs 20,000 crore, which shows its popularity.
The fund has given returns of 14 per cent in seven years, 17.3% in five-year period and 24.4 per cent in three-year period, indicating its good performance.
Its strong performance has been largely contributed by the fund’s holdings in US stocks. Parag Parikh Mutual Fund follows the principle of value investing whenever it sees good quality companies at good valuations.
Today is the last date to deposit Advance Tax, if you miss, you will have to pay a heavy fine
how did you get the benefit
Amol Joshi, Founder, Plan Rupee Investment Services, said, “Its website clearly mentions that the fund works for investors with a minimum tenure of five years. The fund will now explore investment opportunities in the domestic market.” The fund can change its international investments whenever the overseas investment limit rises, he added. However, the increase in the limit has been delayed due to the Russo-Ukraine War.
What should investors do?
Neil Parag Parikh, chairman and CEO, Parag Parikh Mutual Fund, says that the fund considered introducing a new scheme to take advantage of the market downturn, but its tax-saver fund is already sustainable and this It will be three years in July. Parikh says a scheme focused on another Indian market would be a duplication. He says another option was to repossess Parag Parikh Flexi Cap Fund.
“If the AUM of the Flexi Cap Fund doubles from Rs 20,000 crore to Rs 40,000 crore from here, then that fund’s international exposure will come down from 29-30 per cent to 14-15 per cent,” he says.
Financial planners say that while international diversification is important, investors should not stop investing just because it will not be investing in foreign markets for some time.
,