Thread by @AdityaD_Shah

Parag Parikh Flexi Cap has been an investor favorite over the past 2 years.

Away from all the limelight,
Parag Parikh MF remains true to the investment thesis of the great Mr. Parag Parikh

An in-depth thread🧵 analyzing the performance and strategy of the fund.

Lets go👇

Scheme:-
Parag Parikh Flexi Cap fund

Fund Manager:-
Mr Rajeev Thakkar

AUM:-
44,000cr

PPFAS has been the vision of the great Late Parag Parikh.

A true Value Investor.....who lost his life while attending a Berkshire Hathway AGM.

The Mutual fund has tried to remain true to the investing concepts laid by Late Mr Parag Parikh.

Fund Manager:-

Mr Rajeev Thakkar possesses over 15 years of experience.

Joined PPFAS in 2001.

Rajeev is a strong believer in the school of "value-investing" and is heavily influenced by Warren Buffet and Charlie Munger's approach.

Mr.Thakkar is a Chartered Accountant, Cost Accountant, CFA, and CFP. He has been associated with PPFAS AMC since 2013.

Mr Thakkar has been the lead fund manager at PPFAS Mf ever since launch.

Portfolio of the Scheme:-

PPFAS was the first one to blend foreign investments with Indian portfolio.

Portfolio:-

69.67% is in India
15.86% is in the US

Since Mutual funds are restricted from making foreign investments due to restrictions by SEBI

Foreign Portfolio:-

Foreign Portfolio Includes

Alphabet
Microsoft
Amazon
Meta

All these stocks have seen a correction of anywhere b/w 10-35%.

However, due to restrictions, the Mutual Fund is unable to invest more in these stocks.

Investments are being made in the Indian portfolio.

Indian Portfolio:-

PPFAS has remained true to its investment philosophy of value.

1. They exited IT when the stocks went thru the roof.
2. Invested in ITC when the stock was pretty cheap.

3. Invested and increased the position in HDFCBank even as the merger was announced and the stock is underperforming.
4. Tried firsthand to invest in a PSU company Coal India.

Portfolio metrics:-

Churn rate(Buy/Sell Transactions) remains at an average of 15-17%.
Sharpe Ratio(Risk metric) is 1.28.
Beta(Measure of pf volatility) is 0.64

These metrics are well within tolerance.

Stupendous Rise in AUM:-

PPFAS has seen a 10x rise in AUM over the last 4 years.

In 2019 they managed 2700cr.
In 2023 they manage 48,000cr.

Expense Ratio:-

Regular-1.93%
Direct-0.77%

The expenses are in line with the peers in the flexi cap fund category.

Unit-holder AGM:-

PPFAS is known for being investor friendly.

PPFAS Mutual Fund, the only fund house in India to organize Annual General Meetings (AGMs) for its unit holders and partners

Interactions with unit holders is out of the box thinking.

A Goldmine YouTube channel:-



The PPFAS youtube channel is a goldmine to anybody who wants to truly learn investments.youtube.com/c/ppfasltd

Risks:-

1. The AUM has risen spectacularly over the last 4-5 years.

Everybody is chasing the fund now.
As the size keeps growing....there will be difficult for the fund manager to deploy huge amounts of money.

2. Competition:-

As more and more fund houses come and copy the concept followed by PPFAS.

There will be competition.

Conclusion:-

1. PPFAS has stayed true to the concept of value investing.
2. Both Indian and US portfolios have done well.
3. Current stock picks are in line with the philosophy of the fund.
4. They have a great team lead by a fantastic fund manager Mr Rajeev Thakkar.

However,while chasing outperformance one should keep in mind.

There will be periods of underperformance as well.

Stick with them during underperformance as well to enjoy the real fruits of COMPOUNDING.

Keep following me -@AdityaD_Shah as I write daily to make you aware around:
📈Personal Finance
📈Investing
📈Stock Analysis

Go to my profile and hit the bell icon🔔to always stay updated

Disclaimer:-

This is my own study
Not an investment recommendation

Please consult your own financial advisor before making any investment decisions