Should I Invest In Parag Parikh Long-Term Equity Fund?

In the world of mutual funds, investing in long-term funds signifies equity. Though there is no such said lock-in period, mutual funds can yield good returns if the fund has been invested for a period of more than 5 years. 

One such long-term fund is the Parag Parikh Long-Term Equity Fund from the fund house of PPFAS Mutual Fund. The fund is unique as it not only invests in Indian stocks but also in international stocks.

Parag Parikh Long-Term Equity Fund

Parag Parikh Flexi Cap Fund Direct-Growth, previously called Parag Parikh Long-Term Equity Fund, is a Multi Cap mutual fund scheme from the fund house PPFAS Mutual Fund. 

65.51% of its funds are invested in Indian stocks of which, 

  • Large-cap stocks: 34.53% 
  • Mid-cap stocks: 8.99%
  • Small-cap stocks: 19.59%

General Info

  • Launched in 2013
  • Track record= 8 years
  • Assets under management (AUM)=  ?11,360 Crores (As of June 2021)
  • Expense ratio= 2.04 % (close to what most other Multi Cap funds charge)
  • Last 1 year returns= 62.59%

Investment Objective

The scheme proposes to achieve long-term capital appreciation from an actively managed portfolio composed primarily of equity and equity-related instruments. Investment in Parag Parikh Long-Term Equity is a great option for investors who are willing to invest for at least 3-4 years and looking for high returns. Having said that, investors should also be ready for the possibility of moderate losses as it is so for all investments.

Latest Assets Allocation

The top 5 holdings of the Parag Parikh Flexi Cap Fund are stated below:

  1. Alphabet Inc Class A (8.44%)
  2. Bajaj Holdings & Investment Ltd. (7.95%)
  3. Facebook Co. (6.18%)
  4. ITC Ltd. (7.76%)
  5. Microsoft Corporation (US) (7.43%)


Why Invest In Parag Parikh Flexi Cap Fund Direct-Growth?

As compared to Nifty 500 TRI’s 57.21% growth rate, Parag Parikh Flexi Cap Fund Direct-Growth plan has a growth rate of 62.59%, in terms of one-time investment for 1 year. As far as monthly SIP returns are concerned, an investment of ?12,000 values to ?15,746.16 as of July 2021.

  • Deliver returns consistently in line with most funds of its category
  • Invests in Technology (38.16%), Financial (20.49%), Services (9.42%), Automobile (9.01%), FMCG sectors (7.76%), etc.
  • Reduced portfolio volatility
  • Offers the same tax benefits as other Indian equity mutual funds, despite having the freedom to invest in foreign stocks
  • Controls losses even in a falling market


Parag Parikh Long-Term Equity Fund: Analysis Of Returns

Since its inception in 2013, Parag Parikh Flexi Cap Fund Direct-Growth has had a good track record. Even though past performance is not a guarantee of future results, here’s an analysis of the fund’s returns and risks.

As of July 2021, the returns are shown in the chart below:

Period Invested ForTrailing ReturnCategory Average
1 month7.3%3.4%
3 months15.92%14.25%
6 months28.38%20.24%
1 year61.86%60.23%
3 years23.92%17.03%
5 years21.9%16.12%

As of July 2021, the returns of SIP of ?1,000 are shown in the chart below:

Period Invested ForInvestmentLatest ValueAbsolute return
1 year12,00015,778.0431.48%
2 years24,00037,755.8957.32%
3 years36,00060,740.5968.72%
5 years60,0001,15,433.5792.39%

The Bottom Line

Parag Parikh Long-Term Equity Fund is a unique fund that invests in both Indian (65.51%) and international stocks and gives exposure to some of the world’s biggest companies like Google and Facebook.

If you’re willing to invest in a long-term fund, looking for high returns, and are willing to take risks, this is the perfect plan for you.

FAQs Related to Parag Parikh Long-Term Equity Fund

  1. How is Parag Parikh Long Term Equity Fund?

Parag Parikh Long-Term Equity Fund is a unique fund that invests in both Indian (65.51%) and international stocks. As compared to Nifty 500 TRI’s 57.21% growth rate, Parag Parikh Flexi Cap Fund Direct-Growth plan has a growth rate of 62.59%, in terms of one-time investment for 1 year. As far as monthly SIP returns are concerned, an investment of ?12,000 values to ?15,746.16 as of July 2021.

  1. What is Parag Parikh Long Term Equity Fund called?

Parag Parikh Flexi Cap Fund Direct-Growth, previously called Parag Parikh Long-Term Equity Fund, is a Multi Cap mutual fund scheme from the fund house PPFAS Mutual Fund. 65.51% of its funds are invested in Indian stocks of which 34.53% is in large-cap stocks, 8.99% is in mid-cap stocks, 19.59% in small-cap stocks.

  1. What is the AUM or size of the Parag Parikh Flexi Cap Fund?

Asset Under Management or simply AUM is the total value of the assets held by a mutual fund. For example, as of June 2021, Parag Parikh Flexi Cap Fund Direct-Growth has ?11,360 Crores worth of assets under management (AUM).

  1. What is the minimum investment amount of Parag Parikh Flexi Cap Fund?

The Parag Parikh Flexi Cap Fund has a minimum SIP investment amount of ?1,000 and the minimum lump sum investment amount is ?5,000.