The PPFAS Flexi Cap Fund has been making waves in 2023, capturing the attention of many investors. Known for its consistent returns over the past 3-4 years, this fund has outperformed benchmarks and secured a top position. In 2023, it saw substantial inflows, amassing ₹11,400 crore, an 18% increase from the ₹9,600 crore net inflows in 2022.
Let’s dive into what led this fund to become the most popular fund of the year.
Why PPFAS Became the Most Popular Fund of 2023?
Let’s see why Parag Parikh Flexi Cap Fund gained popularity last year.
1. Consistent performance and returns
The PPFAS Flexi Cap Fund gained immense popularity in 2023 due to its consistent performance and impressive returns. Since its launch in 2013, the fund has given competitive returns to investors.
Notably, the fund has never delivered a negative return for investors who stayed invested for seven years. This robust performance and low-risk profile have made it a top choice for investors.
Here’s a comparison of the PPFAS Flexi Cap Fund with its competitors –
| Fund Name | 5 Year Returns |
| PPFAS Flexi Cap Fund | 26.86% |
| SBI Large and Mid-cap Fund | 23.86% |
| ICICI Prudential Bluechip Fund | 21.73% |
| SBI Equity Hybrid Fund | 16.07% |
| HDFC Flexi Cap Fund | 24.22% |
2. Strong Investment Philosophy and Strategy
The PPFAS Flexi Cap Fund follows a value investing approach, aiming for long-term capital growth by managing a diverse portfolio of equities and related securities. The fund focuses on buying securities at a discount to their intrinsic value, creating value for investors.
Like other flexi cap funds, PPFAS’s 65% of assets are always invested in Indian equities, with the remaining 35% in debt instruments, cash, or equivalents. It can invest in companies of any size or sector, both domestically and internationally.
Talking about the fund’s sector allocation, it has 70.48% in domestic equities, including 47.35% in large caps, 6.54% in mid-caps, 7.08% in small caps, and 3.93% in debt.
Top sectors of the fund as of June 30, 2024, include HDFC Bank, Power Grid Corporation, Bajaj Holdings, and ITC Ltd.
3. Transparent Fund Management
The PPFAS Flexi Cap Fund’s success is significantly attributed to its transparent fund management practices. The fund management team prioritizes clear and consistent communication with investors, regularly providing updates on the fund’s performance, portfolio changes, and market outlook.
This openness helps build investor trust and ensures that stakeholders are well-informed about decision-making processes.
4. Attractive Expense Ratio
The PPFAS Flexi Cap Fund is popular for its cost-effectiveness, featuring a competitive expense ratio of 1.33% for the regular plan and 0.62% for the direct plan, which is lower than the average of 0.72%. This lower expense ratio helps maximize investor returns without compromising performance.
Additionally, the fund’s exit load structure is designed to benefit long-term investors:
| Other charges | Details |
| Entry Load | Not applicable. Upfront commission paid directly by the investor to ARN Holder based on service rendered. |
| Exit Load | 2.00% if redeemed on or before 365 days. 1.00% if redeemed after 365 days but on or before 730 days. No Exit Load after 730 days. |
These features make the PPFAS Flexi Cap Fund a cost-effective and attractive investment option, especially for those looking to minimize costs while achieving solid returns.
Conclusion
The PPFAS Flexi Cap Fund became the most popular fund of 2023 because it consistently performed well and gained investor trust. Its calculated investment choices and ability to handle market ups and downs made it a favorite for those looking for strong and reliable growth.
