Parag Parikh Flexi-cap fund:-
The fund has delivered 18.96% CAGR since inception year of 2013.
Funds philosophy, facts, stats and much more in thread below...⌛👇
1/n
The fund has delivered 18.96% CAGR since inception year of 2013.
Funds philosophy, facts, stats and much more in thread below...⌛👇
1/n
The fund belongs to the Parag Parikh AMC. Late Parag Parikh sir was the founder of this AMC, who was the deep value investor. This fund follows the same philosophy.
2/n
2/n
They have total 4 funds to offer.
- Flexi cap
- Tax saver
- Liquid fund
- Hybrid fund
Parag Parikh flexi-cap is their flagship fund. Their entire focus is on this fund.
Tax saver is the same fund like flexi-cap, it invest only in Indian equities.
3/n
- Flexi cap
- Tax saver
- Liquid fund
- Hybrid fund
Parag Parikh flexi-cap is their flagship fund. Their entire focus is on this fund.
Tax saver is the same fund like flexi-cap, it invest only in Indian equities.
3/n
They believe in buying high quality businesses at attractive price.
They follow bottom-up stock selection approach.
Invest in companies which are generating solid cash flows, having low debt and available at attractive price.
4/n
They follow bottom-up stock selection approach.
Invest in companies which are generating solid cash flows, having low debt and available at attractive price.
4/n
They are like old-school guys. They don't believe in,
- Fancy ideas,
- Momentum
- Technical analysis
- Algorithm
They prefer buying at the panic lows and have tonnes of patience to hold for long term.
5/n
- Fancy ideas,
- Momentum
- Technical analysis
- Algorithm
They prefer buying at the panic lows and have tonnes of patience to hold for long term.
5/n
The core philosophy of the fund is to invest only for long term.
They clearly says, this fund is not for you,
- If your time horizon is less than 5 year
- Looking for quick and blockbuster returns
- If you fear and excites during boom and busts.
6/n
They clearly says, this fund is not for you,
- If your time horizon is less than 5 year
- Looking for quick and blockbuster returns
- If you fear and excites during boom and busts.
6/n
Fund believes in country diversification with concentrated approach.
Funds philosophy is to invest minimum 65% in Indian equities and upto 35% in overseas equities.
So the fund can take benefit of overseas top businesses. They have investments in US TECH companies.
7/n
Funds philosophy is to invest minimum 65% in Indian equities and upto 35% in overseas equities.
So the fund can take benefit of overseas top businesses. They have investments in US TECH companies.
7/n
In june 2022 SEBI restricted Indian mutual funds overseas investment limit upto US$ 7 billion.
(I hope the SEBI will increase the limit, so the indian mutual funds can enjoy the benefits of US growth companies.)
8/n
(I hope the SEBI will increase the limit, so the indian mutual funds can enjoy the benefits of US growth companies.)
8/n
I like their concentrated portfolio approach.
As on march 23 they have 23 stock in indian equities and 5 stocks in overseas equities.
Top 10 stocks are the 55% of the portfolio.
This shows, they maintain concentrated portfolio with adequate diversification.
9/n
As on march 23 they have 23 stock in indian equities and 5 stocks in overseas equities.
Top 10 stocks are the 55% of the portfolio.
This shows, they maintain concentrated portfolio with adequate diversification.
9/n
One more interesting thing I like about the fund is that, They have ' significant " Skin in the game."
Insiders holds units worth of 318.65 Cr in Flexi-cap fund. So, it ensures they take care of clients money.
10/n
Insiders holds units worth of 318.65 Cr in Flexi-cap fund. So, it ensures they take care of clients money.
10/n
As a value investing they believe in buy and do nothing strategy.
Look at the portfolio turnover ratio, which is just 8% (ex equity arbitrage).
We observe fund managers come out with new idea every other day, but people at ppfas follows low churn strategy.
11/n
Look at the portfolio turnover ratio, which is just 8% (ex equity arbitrage).
We observe fund managers come out with new idea every other day, but people at ppfas follows low churn strategy.
11/n
Expense ratio:-
Direct plan: 0.73%
Regular plan: 1.58%
In regular plan, there is hidden commission of broker and agent.
In direct plan there is no commission to broker, just AMC fees.
Due to lower expense ratio, direct plan deliver higher returns.
12/n
Direct plan: 0.73%
Regular plan: 1.58%
In regular plan, there is hidden commission of broker and agent.
In direct plan there is no commission to broker, just AMC fees.
Due to lower expense ratio, direct plan deliver higher returns.
12/n
Fund managers:-
- Rajeev Thakkar
Sir has vast experience of finance, broking and equities. He has been with ppfas since 2001. He is managing this scheme since inception.
13/n
- Rajeev Thakkar
Sir has vast experience of finance, broking and equities. He has been with ppfas since 2001. He is managing this scheme since inception.
13/n
- Raunak onkar
Raunak sir has been working with ppfas since 2008. He manages overseas equities.
The guys at ppfas are extremely efficient and ethical. Following the core philosophy of fund.
14/n
Raunak sir has been working with ppfas since 2008. He manages overseas equities.
The guys at ppfas are extremely efficient and ethical. Following the core philosophy of fund.
14/n
I haven't seen them on media giving guidance, our top sectors, top picks, gdp projection, nifty target, timing the market.
On the other side I observe many fund managers appears on media and keep sharing fancy stuff to attract the AUM.
15/n
On the other side I observe many fund managers appears on media and keep sharing fancy stuff to attract the AUM.
15/n
One more interesting thins about ppfas is they don't have sales team.
Says, we are not into the game of marketing.
They have small team of relationship manager.
Where the help clients to solve their queries and build strong long term relationships.
16/n
Says, we are not into the game of marketing.
They have small team of relationship manager.
Where the help clients to solve their queries and build strong long term relationships.
16/n
Hocky stick growth:-
Ppfas was not that popular 5-7 year ago. Due to the consistent excellent performance of the fund, this fund got lots of traction from the investors and the asset under management climbing new heights.
17/n
Ppfas was not that popular 5-7 year ago. Due to the consistent excellent performance of the fund, this fund got lots of traction from the investors and the asset under management climbing new heights.
17/n
Aum:-
At the end of 2015 fund had only 644 cr of assets under management.
Today the assets under management are 31290 Cr.
That's 45X within just 8 years.
Just Wow!!!
Now you can calculate the aum cagr and share with us...
18/n
At the end of 2015 fund had only 644 cr of assets under management.
Today the assets under management are 31290 Cr.
That's 45X within just 8 years.
Just Wow!!!
Now you can calculate the aum cagr and share with us...
18/n
Allocation and portfolio:
You can observe, top 3 sectors consists of more than 40%.
And the most important is the cash and cash equivalent, which are 12.46%.
Holding enough cash for rainy days.
19/n
You can observe, top 3 sectors consists of more than 40%.
And the most important is the cash and cash equivalent, which are 12.46%.
Holding enough cash for rainy days.
19/n
Top 5 indian stocks:
- HDFC
- ITC
- Bajaj holding
- ICICI Bank
- Axis Bank
- HCL Tech
- Coal India
- Power grid
- Hero motocorp
- IEX
Overseas holdings:-
- Microsoft
- Alphabet
- Amazon
- Meta
- Suzuki
Core focus is to buy and hold undervalued businesses.
20/n
- HDFC
- ITC
- Bajaj holding
- ICICI Bank
- Axis Bank
- HCL Tech
- Coal India
- Power grid
- Hero motocorp
- IEX
Overseas holdings:-
- Microsoft
- Alphabet
- Amazon
- Meta
- Suzuki
Core focus is to buy and hold undervalued businesses.
20/n
Performance:-
Fund has delivered 18.41% returns in last 7 years. (Direct plan)
On the other side nifty50 has delivered 13.72% in the same period.
So this fund has outperdormed the nifty50 by a huge difference.
21/n
Fund has delivered 18.41% returns in last 7 years. (Direct plan)
On the other side nifty50 has delivered 13.72% in the same period.
So this fund has outperdormed the nifty50 by a huge difference.
21/n
If someone had invested lumpsump 1 Lac rupees in this fund 7 years ago, then the value would be 326000/-
And in the nifty50% with 13.72% cagr returns, it would be 246000/-
The fund has outperformed to most of its peers.
22/n
And in the nifty50% with 13.72% cagr returns, it would be 246000/-
The fund has outperformed to most of its peers.
22/n
While investing our priority should not be to chase the returns.
High greed can lead to the risky investments. And thats not the philosophy of value investing.
Personally I also try to apply the ppfas philosophy to my own investing.
23/n
High greed can lead to the risky investments. And thats not the philosophy of value investing.
Personally I also try to apply the ppfas philosophy to my own investing.
23/n
So these are my learning from the fund house. I am ending the thread here.
Personally Im investing in the fund through SIP.
Sharing the information just for information purposes and there is not any recommendations.
Thanks for reading the thread. Do share your views🙏
24/24
Personally Im investing in the fund through SIP.
Sharing the information just for information purposes and there is not any recommendations.
Thanks for reading the thread. Do share your views🙏
24/24
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