In a volatile market where most mutual funds struggle to stay afloat, the Parag Parikh Flexi Cap Fund has emerged as a beacon of resilience. Recent data reveals that it is the only flexi-cap fund to deliver positive returns (1.26%) over the last 6 months, while competitors like HDFC, SBI, and DSP lagged with double-digit losses. But what makes this fund stand out? In this deep dive, we’ll unpack its performance, compare it with peers, and reveal why it’s a top pick for 2025.
Why the Parag Parikh Flexi Cap Fund Dominates the Flexi-Cap Category
Parag Parikh Flexi Cap Fund’s Standout Performance
The fund’s 6-month return of 1.26% (as of 2025) is unmatched in its category. While its 3-month return dipped slightly (-0.21%), it still outperformed all peers, which saw steeper declines (e.g., HSBC Flexi Cap: -9.62%, Franklin India Flexi Cap: -4.97%). This consistency stems from its strategic stock picks and sectoral diversification, which we’ll explore later.
Head-to-Head: Parag Parikh vs. Top Flexi-Cap Funds
Let’s compare key metrics:
Parag Parekh Flexi Cap Fund is the only fund which has delivered positive returns in the last 3 and 6 months.
| Scheme Name | Crisis Rating | AuM | 1W | 3M | 6M | YTD | 1Y | 2Y | 3Y | 10Y |
|---|---|---|---|---|---|---|---|---|---|---|
| SBI Contra Fund – Direct Plan – Growth | 4 | 41,634.25 | -0.61% | -3.57% | -5.80% | 5.60% | 25.45% | 22.49% | 15.81% | |
| DSP ELSS Tax Saver Fund – Direct Plan – Growth | 4 | 15,985.06 | -0.56% | -5.23% | -7.62% | -6.71% | 17.97% | 17.57% | 21.53% | 15.51% |
| Franklin India ELSS Tax Saver Fund – Direct Plan – Growth | 4 | 6,438.34 | -0.58% | -5.13% | -7.39% | -7.94% | 19.73% | 17.59% | 20.39% | 15.51% |
| Quantum ELSS Tax Saver Fund – Direct Plan – Growth | 4 | 212.10 | -0.20% | -7.99% | -11.01% | -12.45% | 7.98% | 16.92% | 19.94% | 15.00% |
| HSBC ELSS Tax Saver Fund – Direct Plan – Growth | 4 | 3,977.42 | -1.89% | -5.67% | -10.40% | -12.42% | 10.95% | 17.51% | 18.92% | 14.00% |
| ITI ELSS Tax Saver Fund – Direct Plan – Growth | 4 | 1,125.38 | -1.10% | -7.25% | -16.30% | -17.29% | 21.48% | 22.66% | 18.32% | 16.82% |
| Baroda BNP Paribas ELSS Tax Saver Fund – Direct Plan – Growth | 4 | 892.99 | -1.49% | -8.16% | -11.91% | -12.76% | 7.10% | 17.70% | 22.47% | 14.14% |
| JM ELSS Tax Saver Fund – Direct Plan – Growth | 4 | 180.14 | -2.71% | -2.41% | -2.34% | -2.19% | 14.52% | 27.42% | 18.61% | 23.99% |
| HDFC Flexi Cap Fund – Direct Plan – Growth | 4 | 85,966.82 | -0.24% | 0.21% | 1.26% | -2.19% | 18.52% | 27.42% | 18.61% | 23.99% |
| Parag Parekh Flexi Cap Fund – Direct Plan – Growth | 4 | 89,703.46 | -0.24% | 0.21% | 1.26% | 14.52% | 27.42% | 18.61% | 23.99% | 18.08% |
| Invesco India Infrastructure Fund – Direct Plan – Growth | 5 | 1,496.41 | -4.10% | -14.97% | -19.36% | -17.92% | 1.21% | 29.50% | 24.27% | 15.61% |
| Franklin India Flexi Cap Fund – Direct – Growth | 4 | 17,202.58 | -0.62% | -7.50% | -7.72% | -7.88% | 23.67% | 16.76% | 18.71% | 16.25% |
| Edelweiss Flexi Cap Fund – Direct Plan – Growth | 4 | 2,376.12 | -1.83% | -4.96% | -8.60% | -9.78% | 20.87% | 16.78% | 18.66% | 16.78% |
| Motilal Oswal Flexi Cap Fund – Direct Plan – Growth | 4 | 1,680.83 | -1.83% | -5.75% | -8.58% | -9.36% | 18.90% | 21.51% | 16.22% | 16.22% |
| HSBC Flexi Cap Fund – Direct Plan – Growth | 4 | 2,554.65 | -1.56% | -8.86% | -10.12% | -11.30% | 21.51% | 16.25% | 14.19% | 16.22% |
| JM Flexi Cap Fund – Direct Plan – Growth | 4 | 5,254.65 | -2.25% | -6.92% | -11.00% | -11.30% | 21.51% | 15.81% | 16.12% | 15.24% |
Source: AMFI Data (2024)
The Parag Parikh Fund’s lower volatility and focus on undervalued sectors like infrastructure and pharma explain its edge. For example, it avoided overhyped tech stocks that dragged down competitors.
3 Reasons Behind the Parag Parikh Flexi Cap Fund’s Success
1. Crisil-Rated Stability (Crisil Rating: 4/5)
The fund’s Crisil Rating of 4 reflects its consistent risk-adjusted returns. Unlike lower-rated funds like ITI ELSS (Crisil 4), Parag Parikh’s portfolio avoids overconcentration in risky assets. Learn more about Crisil ratings here.
2. Massive AUM Growth (₹89,703 Cr)
With an AUM of ₹89,703 crore, it’s the largest flexi-cap fund, attracting institutional and retail investors alike. This liquidity allows smoother portfolio rebalancing during market swings.
3. Sector-Agnostic Strategy
The fund invests across sectors, including defensive stocks like FMCG and cyclical industries like auto. This “flexi” approach mitigates downside risks—a lesson learned from the 2022 crash.
Risks to Consider Before Investing
While the Parag Parikh Flexi Cap Fund shines, no investment is risk-free:
- Market Volatility: Its equity-heavy portfolio (95% stocks) remains exposed to market corrections.
- Management Changes: A shift in leadership could alter its strategy.
For safer alternatives, explore SEBI-approved debt funds.
Conclusion: Should You Invest in the Parag Parikh Flexi Cap Fund?
If you seek a stable, large-cap-biased fund with a proven track record, the Parag Parikh Flexi Cap Fund is a compelling choice. Its ability to deliver positive 6-month returns in a bear market underscores its resilience. However, pair it with debt funds for balanced exposure.
For more insights, check out our guide on Top 5 Flexi-Cap Funds for 2024.
Crisil, SEBI. Best Flexi-Cap Funds.
