Parag Parikh Flexi Cap Fund (PPFCF) Factsheet April: Suzuki Motor sold – Check performance

The Parag Parikh Flexi Cap Fund (PPFCF) factsheet for April shows some interesting insights. The fund has increased cash holdings and sold a stake in one of its foreign holdings. Simultaneously, the fund has increased its stake in other foreign stocks. Now, PPFCF holds four international stocks instead of the five foreign companies it had in the portfolio.

The Parag Parikh Flexi Cap Fund (PPFCF) is a well-known flexi cap mutual fund strategy that provides investors with exposure to overseas equities. The PPFCF is an open-ended equity-oriented plan that invests in big, medium, and small-cap equities both domestically and internationally. As a result, PPFCF is a flexi-cap international mutual fund scheme, allowing Indian investors to diversify internationally. The exposure to foreign companies sets the Parag Parikh Flexi Cap Fund apart from other plans in the same category.

The latest factsheet for April 2023 shows that the fund managers have sold Suzuki Motor Corp (ADR) 0.54% holdings and are now invested 1.12% in shares of Maruti Suzuki India Limited Automobiles listed on Indian exchanges.

PPFCF has a mandate to invest up to 35% of its assets in international shares and 65% in Indian markets. From a tax standpoint, the allocation levels become significant. The indexation benefit is no longer accessible to debt schemes under the new debt tax laws, which also apply to international funds, and long-term gains are taxed according to the investor’s tax slab. This new tax law for debt funds, which went into effect on April 1, 223, applies if the debt fund’s exposure to Indian stocks is less than 35%.

The AUM as of April 28, 2023, stands at around Rs 33,615.95 crores. Nearly 70% of the AUM is in Indian equities ( including the arbitrage position) while almost 17% is in foreign equities. So, PPFCF is taxed as any other equity fund holding more than 65% in Indian equities. Therefore, PPFCF is not impacted negatively by this new debt fund tax rule.

Net Asset Value (NAV) as on April 28, 2023 for Regular Plan was 52.2082 and for the Direct Plan it was 55.9938.

Within the exposure to equities, 15.45% allocation is in the Finance sector, 13.61% is in Internet & Technology and 10.92% is in banks.

Microsoft Corporation 5.36%, Alphabet Inc. (Google Class A) 4.82 %, Amazon, 3.54 % and Meta Platforms Inc. (Formerly Facebook Inc.) 3.43 % are among the foreign investments held by the Parag Parikh Flexi Cap Fund as of April 28.

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By April end, the fund had about 14.27% in cash holdings as against 12.46% held at March end.

The Parag Parikh Flexi Cap Fund is a diversified equity scheme, the investment universe of which is not constrained by sector, market capitalization or geography. The fund suits investors with a long-term horizon. As of April 28, 2023, the 1-year return of Parag Parikh Flexi Cap Fund has been 9.38% as against a return of 4.05% of Nifty 500 and 6.91% of the Nifty 50. Since its inception (May 24, 2013), the CAGR of PPFCF is 18.10% compared to 13.15% of Nifty 50.

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