Parag Parikh Flexi Cap Mutual Fund has been under the scanner.
Why are this fund’s returns muted?
Look at the big holdings right now:
HDFC Bank: 8.33%
Power Grid: 6.23%
ITC: 6.07%
ICICI Bank: 5.52%
Coal India: 5.35%
Bajaj Holdings & Investment: 4.6%
M & M: 3.6%
These three alone form a heavy chunk of the portfolio.
Now,
check recent 1-year stock returns of these stocks-
HDFC Bank: -27%
ITC: -30% to -33%
ICICI Bank: -1% to -2%
Power Grid: -5%
Coal India: +5%
Bajaj Holdings & Investment: –23%
M & M: +1%
When your top bets (especially banks + ITC) & value-oriented names lag while the broader market runs on different themes,
the fund’s returns naturally look muted in the short term.
That’s the simple data story so far.
