PPFAS as a fund house has refrained from launching many schemes like various other leading fund houses. It has helped PPFAS to remain focused on the limited number of offerings and to gain the trust of investors. Many mutual fund investors prefer to invest a majority of their funds in PPFAS mutual fund schemes due to the disciplined investment approach of the fund house. It is the only fund house that holds unit-holder meetings to discuss investment objectives and to reply to the queries of investors.
Parag Parikh Flexi Cap Fund
(Erstwhile Parag Parikh Long term Equity Fund) is one of the best flexicap funds.
The Fund is managed by Mr. Rajeev Thakkar, Mr. Raunak Onkar, and Mr. Raj Mehta.
The fund has delivered good returns in the past over various tenures. Parag Parikh Flexi Cap Fund is an equity-oriented
open-ended scheme investing in both Indian and foreign equities. As per the
statement of fund house:
The core portfolio consists of equity investments made with a long term outlook and the factors considered while investing are quality of management, quality of the sector and the business (return on capital, entry barriers, capital intensity, use of debt, growth prospects, etc) and the valuation of the companies. The endeavor of the fund management team is to identify opportunities for long-term investments.
The investment decisions made by fund house in the Parag Parikh Flexi Cap scheme are tracked by many mutual fund and equity investors to have a sense of market/industry outlook as well as to find quality stocks with good return potential. In this article, we shall review major monthly changes made in the scheme by the fund manager for the benefit of our readers.
December 2021
| Buy | No of Shares (Nov-21) | No of Shares (Dec-21) | Percentage change in no. of shares | Holding as %age of AUM (Nov-21) | Holding as %age of AUM (Dec-21) |
|---|---|---|---|---|---|
| ITC Limited | 57696067 | 72728009 | 26.05% | 6.97% | 7.96% |
| HCL Technologies Limited | 8007285 | 8182285 | 2.19% | 4.98% | 5.41% |
| ICICI Bank Limited | 12140614 | 13540614 | 11.53% | 4.74% | 5.03% |
| Axis Bank Limited | 12689094 | 14689094 | 15.76% | 4.55% | 5.00% |
| Hero Motocorp Limited | 3502984 | 3968078 | 13.28% | 4.69% | 4.90% |
| Power Grid Corporation of India Ltd | 34104561 | 37673726 | 10.47% | 3.85% | 3.86% |
| HDFC Bank Limited | 3211419 | 4312844 | 34.30% | 2.62% | 3.20% |
| Motilal Oswal Financial Services Ltd. | 2320191 | 2999985 | 29.30% | 1.20% | 1.38% |
| Sun Pharmaceutical Ind Ltd | 2225297 | 2525297 | 13.48% | 0.92% | 1.02% |
| Dr. Reddy Laboratories Limited | 376602 | 414682 | 10.11% | 0.96% | 1.02% |
| Cadila Healthcare Ltd. | 3564092 | 4195324 | 17.71% | 1.01% | 1.02% |
| Ipca Laboratories Limited | 876510 | 896965 | 2.33% | 1.01% | 0.98% |
| Alphabet Inc. | 71888 | 75328 | 4.79% | 8.59% | 8.21% |
| Microsoft Corporation | 553487 | 584397 | 5.58% | 7.65% | 7.39% |
| Amazon.Com Inc | 48384 | 51264 | 5.95% | 7.08% | 6.44% |
| Meta Platforms | 436016 | 467126 | 7.14% | 6.05% | 5.99% |
| Sell | |||||
| Persistent Systems Limited | 949977 | 387746 | -59.18% | 2.15% | 0.95% |
| Mphasis Limited | 1150494 | 645950 | -43.85% | 1.82% | 1.10% |
| Net Cash & Cash Equivalents (app) | Nov-21 | Dec-21 | |||
| 4.28% | 5.00% |
The fund manager, Rajeev Thakkar has increased the stake in ITC limited from 6.97% to 7.96% of AUM. Sh Rajeev Thakker has been positive of ITC limited for the last many months and has continued to buy the stock in the fund.
The fund manager has continued to purchase the stock of leading banks i.e. ICICI Bank Limited, Axis Bank Limited, and HDFC Bank Limited. The holding as a percentage of Assets Under Management (AUM), is now over 5.00% in case of ICICI bank and Axis Bank while the holding of HDFC bank in the fund increased to 3.20%. The banking index is expected to do well given under performance in recent years.
The fund manager has further purchased shares of Motilal Oswal Financial Services Ltd. The holding as a percentage of AUM has increased from 1.20% to 1.38% and the fund continues to be the largest mutual fund holder for the company.
The fund manager has further increased holding in pharma companies Dr. Reddy Laboratories Limited and Sun Pharmaceutical Ind Ltd. The holding in Ipca Laboratories and Cadila Healthcare Ltd. has been kept constant with additional purchases. The investment in pharma companies is in line with the fund manager’s strategy of taking a basket approach in the sector.
The fund manager has continued to sell the shares of Mphasis Limited and Persistent Systems Limited. The holding of Persistent Systems Limited falls below 1.00% of AUM. The fund manager has continued to increase the stake in HCL Technologies Limited. The holding of HCL tech has increased from 4.98% to 5.41%.
November 2021
| Buy | No of Shares (Oct-21) | No of Shares (Nov-21) | Percentage change in no. of shares | Holding as %age of AUM (Oct-21) | Holding as %age of AUM (Nov-21) |
|---|---|---|---|---|---|
| HCL Technologies Limited | 6787285 | 8007285 | 17.97% | 4.51% | 4.98% |
| ICICI Bank Limited | 10215614 | 12140614 | 18.84% | 4.76% | 4.74% |
| Hero Motocorp Limited | 3111326 | 3502984 | 12.59% | 4.80% | 4.69% |
| Axis Bank Limited | 10639094 | 12689094 | 19.27% | 4.58% | 4.55% |
| HDFC Bank Limited | 2286419 | 3211419 | 40.46% | 2.10% | 2.62% |
| Motilal Oswal Financial Services Ltd. | 1766286 | 2320191 | 31.36% | 0.94% | 1.20% |
| Ipca Laboratories Limited | 474059 | 876510 | 84.89% | 0.59% | 1.01% |
| Dr. Reddy Laboratories Limited | 225995 | 376602 | 66.64% | 0.61% | 0.96% |
| Sun Pharmaceutical Ind Ltd | 1796797 | 2225297 | 23.85% | 0.83% | 0.92% |
| Sell | |||||
| Persistent Systems Limited | 1171045 | 949977 | -18.88% | 2.67% | 2.15% |
| Mphasis Limited | 1403568 | 1150494 | -18.03% | 2.64% | 1.82% |
| Net Cash & Cash Equivalents (app) | Oct-21 | Nov-21 | |||
| 2.50% | 4.28% |
The fund manager has purchased the stock of leading banks i.e. ICICI Bank Limited, Axis Bank Limited, and HDFC Bank Limited. The holding as a percentage of Assets Under Management (AUM), however, has increased in the case of HDFC bank only. The fund now holds 2.62% of its AUM in HDFC Bank. The banking stocks have underperformed the Nifty 50 and other broader indexes in recent years and are expected to do well in the future.
The fund manager has further sold shares of Mphasis Limited and Persistent Systems Limited while it has purchased the shares of HCL Technologies Limited. The holding of HCL tech has increased from 4.51% to 4.98%.
The fund manager has further purchased shares of Hero Motocorp Limited and Motilal Oswal Financial Services Ltd. While the holding as a percentage of AUM in Hero Motocorp is more or less the same, the holding has increased from 0.94% to 1.20% in the case of Motilal Oswal financial services. Rajeev Thakkar has been consistently buying Motilal Oswal financial services since September 2021 and is now the largest mutual fund holder in the stock.
The fund manager has increased holding in pharma companies Ipca Laboratories Limited, Dr. Reddy Laboratories Limited, and Sun Pharmaceutical Ind Ltd. The investment in pharma companies is in line with the fund manager’s strategy of taking a basket approach in the sector.
The Link to Various funds from Parag Parikh Fund house is as under
1. Parag Parikh Flexi Cap Fund
2. Parag Parikh Tax Saver Fund
3. Parag Parikh Conservative Hybrid Fund
Sources
https://amc.ppfas.com/downloads/factsheet/index.php
https://amc.ppfas.com/index.php
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