FACT SHEET - DECEMBER 2021
Parag Parikh Flexi Cap Fund (PPFCF) is an open ended equity oriented scheme with flexibility to invest a minimum of 65% in Indian equities and up to 35% in overseas equity security and domestic debt / money market securities.
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. However there are times when the opportunities are not attractive enough. While waiting for attractive opportunities, the fund invests in arbitrage opportunities between the cash and futures equity markets and special situations arbitrage where open offers / delisting / merger events have been announced. Investments are also made in money market / debt securities while waiting for deployment in core equity investments.
Foreign equity investment
The fund invests in foreign equity securities. Since investors in PPFCF look for capital investment and returns in Rupee
terms, PPFCF also looks at delivering in Rupee terms. PPFCF hedges most of the currency exposure using currency
futures.
Outlook
We continue to look at individual investments on their own merits and will not hesitate to invest if an opportunity looks
attractive. As usual, our investment stance does not depend much on the macro-economic situation but is focussed on
individual companies. We have about 5.43% in cash holdings, debt & money market instruments and arbitrage
positions which can be deployed in long term investments at appropriate levels.
Mutual Fund investments are subject to market risks, read all scheme related documents carefully.