Parag Parikh Flexi Cap inflows fall 77% since March: How has Rajeev Thakkar changed the Rs 1.45 lakh crore portfolio?

So, how have investor flows changed, where is the fund deploying its money, and how has it performed? Representative Image: Parag Parikh Flexi Cap Inflows How much have inflows declined? The fund's estimated monthly inflows have moderated steadily since March, although they remained positive throughout the period. September's estimated inflows were lower than March's, representing a decline of 77.2 percent.

However, Raj Mehta, Executive Vice President and Fund Manager – Equity at PPFAS Mutual Fund, said the moderation has not affected the fund's investment strategy. "It hasn't impacted our portfolio strategy in any way as we are still having net inflows," Mehta told Moneycontrol. He attributed the broader shift in investor preferences partly to the relatively stronger recent performance of mid- and small-cap funds, adding that flows often follow short-term performance.

Why has the fund reduced its cash holdings? The fund's cash and cash-equivalent holdings fell by 9.17 percentage points between March and September. According to Mehta, this reflects the availability of investment opportunities rather than a particular view on overall market levels. "Cash and cash equivalents in the portfolio is a function of the opportunities available in the market and not the market levels per se," he said.

Mehta explained that a prolonged time correction in the market, alongside price corrections in selected stocks and sectors, has allowed the fund to establish new positions and add to existing holdings. The September factsheet shows 72.06 percent of net assets in core equity, 11.90 percent in overseas securities, IDRs and ADRs, and 6.27 percent in REITs and InvITs. What changed in the portfolio during September?

The fund's September factsheet identifies DLF as the largest addition to core equity holdings compared with August, accounting for 1.81 percent of AUM. Other additions included Mahindra & Mahindra, Indus Towers, Bharti Airtel and selected oil and gas companies. The factsheet also recorded an exit from Great Eastern Shipping Company, which accounted for 0.11 percent of AUM in August. Meanwhile, the fund held 2.49 percent in Embassy Office Parks REIT, 2.18 percent in Knowledge Realty Trust and 1.60 percent in Brookfield India Real Estate Trust.

Together, these three holdings accounted for its 6.27 percent REIT allocation. How has Parag Parikh Flexi Cap performed? The fund's recent performance has been weaker than its longer-term record. Its regular plan delivered a negative 4.14 percent return over one year, compared with a negative 2.03 percent return for its benchmark, the Nifty 500 TRI. However, the fund outperformed the benchmark over three, five and ten years.

The contrast is important. While estimated inflows have moderated and recent returns have lagged the benchmark, the fund continues to receive money and has been deploying cash into selected opportunities. For investors tracking the scheme, the more relevant question is not simply how much money is entering the fund, but how its portfolio is changing as market conditions evolve.