In the Indian financial market, the inclination of investors towards mutual funds has increased rapidly for some time. In today’s era, people are leaving traditional savings schemes and turning to equity funds in search of better returns along with market risks. There are many selected mutual funds in the market, which have given surprising returns to investors due to their consistent performance.
One of these names is about 13 years old ‘Parag Parikh Flexi Cap Fund’ (PPFAS). Today this fund has become the country’s largest actively managed fund and flexi cap fund on the basis of assets. According to a recent analysis by ETMutualFunds, this fund has shown an exceptional example of wealth creation over the long term. Let us know how rich this fund has made investors in different time frames.
What is the value today of SIP of Rs 10,000 started 13 years ago?
If any investor had invested in Parag Parikh Flexi Cap Fund with discipline from the very beginning, his fortunes would have changed today. According to the analysis, if an investor had started a Systematic Investment Plan (SIP) of Rs 10,000 every month in this fund in the initial days, then today after 13 years his total investment amount would have increased to around Rs 51 lakh. This figure shows how the power of compounding and choosing the right fund can create a huge wealth in the long run.
How much return did you get on investment of 10, 5 and 3 years?
The track record of this fund has been extremely strong not only over 13 years but also over different periods. If an investor had started a SIP of Rs 10,000 per month in this scheme 10 years ago, the total value of that investment today would have been Rs 29.25 lakh. During this period, the fund has given an excellent Extended Internal Rate of Return (XIRR) of 17.02%.
Similarly, if the same investment had been made 5 years ago, it would have been worth Rs 8.21 lakh today (XIRR 12.61%). At the same time, if we talk about the investment of the last three years, its value at this time would have been around Rs 4.05 lakh, in which XIRR was recorded at 8.04%.
Fund’s AUM reaches Rs 1.40 lakh crore with 5-star rating
The credibility of this flexicap fund can be gauged from the fact that both the world’s renowned rating agencies Value Research and Morningstar have given it ‘5-star rating’. Due to the huge confidence of investors, the total asset under management (AUM) of this fund has jumped to a record level of Rs 1.40 lakh crore by April 2026, which was Rs 1.28 lakh crore in the previous month i.e. March.
What is the investment strategy of the fund and why does it get strong returns?
According to PPFAS Mutual Fund, the main objective of this scheme is to achieve long-term capital growth through an actively managed portfolio. The portfolio of this fund mainly consists of strong equities and equity related securities.
According to Raunak Omkar, fund manager and research head, their strategy is very clear. They invest only in quality companies (with strong business models) for the long term which are available at reasonable valuations. Another major feature of this fund is that along with Indian stocks, it also invests in selected foreign stocks (Global Stocks), thereby providing international diversification to the investors. Moreover, if there are no suitable and cheap investment opportunities available in the market, fund managers prefer to hold cash.
Expert opinion: Recovered from the phase of negative returns and made a record in 2021
Certified Financial Planner Rajesh Minocha says that this fund of Parag Parikh Asset Management has performed extremely strong and consistently in the last 13 years. Delivering an XIRR of around 17% over the long term proves the benefits of disciplined investing and picking good quality stocks. This fund works completely on value-oriented approach.
However, it is not that the journey of this fund has always been profitable. This fund has also given negative returns twice in the last 10 calendar years amid market fluctuations. The fund had to suffer a loss of 0.43% in the year 2018 and 7.23% in the year 2022. But the fund surprised everyone with its tremendous returns; Its best performance in the last 10 years was in the year 2021, when this fund gave its investors a record-breaking bumper return of about 45.51% in a single year.
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