Parag Parikh Flexi Cap Fund Buys More in 11 Stocks

The Parag Parikh Flexi Cap Fund, a prominent Indian flexi-cap mutual fund, executed targeted adjustments to its equity portfolio in July. The fund notably increased its stake in 11 existing companies, contributing to a rise in its assets under management.

By the close of July, the fund’s AUM stood at approximately ₹1.48 lakh crore, an increase from about ₹1.43 lakh crore recorded in June. Concurrently, the fund’s cash and equivalents allocation saw a marginal reduction, moving from 12.72% of the portfolio in June to 11.74%.

Key Portfolio Adjustments

• Petronet LNG: Holdings increased by nearly 52%, from 1 crore shares in June to 1.52 crore shares in July. Its allocation within net assets rose from 0.20% to 0.29%.
• CIE Automotive India: Experienced a 73% increase in shares, from approximately 4.64 lakh to 8.03 lakh, though remaining a minor 0.02% of net assets.
• Mahanagar Gas: Holdings rose by 20%.
• Indraprastha Gas: Holdings increased by 11%.
• Other companies with increased holdings included Dr Reddy’s Laboratories, EID Parry, Bajaj Holdings & Investment, HCL Technologies, Maruti Suzuki India, and Coal India.

The fund made no new equity additions or complete divestments during the month, focusing solely on augmenting existing positions. Several of its largest holdings, including HDFC Bank, ICICI Bank, ITC, Power Grid Corporation of India, Axis Bank, Infosys, and Mahindra & Mahindra, maintained consistent shareholdings.

Any shifts in the portfolio weights of these stable holdings were primarily driven by market price movements. For instance, HDFC Bank’s portfolio weight decreased from 8.33% in June to 7.55% in July, despite its share count remaining at 14.97 crore. Similarly, Power Grid Corporation’s weight declined from 6.23% to 5.98% with an unchanged 31.20 crore shares.

Performance Overview

• 10-year return (as of August 7, 2026): 17.49%, outperforming the BSE 500 TRI (13.66%) and the average flexi-cap fund (13.87%).
• 7-year return: 20.42%.
• 5-year return: 13.58%.
• 1-year return: 0.90%, underperforming the benchmark’s 5.19%.

The Parag Parikh Flexi Cap Fund’s July adjustments underscore a strategy of deepening existing conviction rather than broadening its equity base. While its long-term performance remains robust against benchmarks, its more recent one-year returns present a subdued picture.