Parag Parikh reopens its Flexi Cap Fund


Parag Parikh mutual fund had recently announced in January 2022 that it would not be accepting fresh lumpsum or fresh sip registrations in Parag Parikh Flexi Cap fund from February 2, 2022.

It has now decided to reopen the scheme from 15th March 2022 considering there is no clarity yet with regards to the increasing of the limit.

parag parikh mutual fund

What is Parag Parikh Flexi Cap Fund?

Parag Parikh Flexi Cap Fund as the name suggests is a flexi cap fund.

A flexi cap fund by mandate requires a minimum of 65% investment in to equity at all times.

It is considered an equity fund for taxation purposes and accordingly taxed.

A flexi cap fund has no restriction with respect to market caps or sectors, it is the most flexible of all equity funds because of this reason.

Parag Parikh Flexi Cap fund along with the domestic market,  also invests up to 35% of its total corpus into foreign stocks.

It has a focused approach despite not being a focused fund with the number of holdings .


Additional reading: Click Here to read why Parag Parikh restricted investments in its Flexi Cap fund


Can the limit be raised?

Yes and most likely it will be soon.

The exact date and the confirmation of the same have to yet be confirmed though.

At the moment though, markets worldwide are going through a very volatile phase.

This is on account of the Russia-Ukraine conflict, rising crude oil prices and inflation.

The Indian Rupee too is not faring any better.

All these factors have meant a volatile market which in turn means a good opportunity to invest in a falling market without needing to time the market.  

The above factors along with no clarity regarding the raising of the limit have led to the fund being reopened.


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How will this new change affect your investments?

Parag Parikh Flexi Cap needs a minimum of 65% into domestic equity at all times.

This is so the fund can qualify as an equity fund for taxation purposes which is more favourable than it is for debt funds.

International mutual fund schemes are considered as debt funds for taxation purpose.

On top of this it also invests in foreign equities, mostly US based IT companies.

Now the fund cannot invest in foreign equities till the limit is raised, therefore whatever amount the fund gets in the meantime will have to be allocated to domestic equity.

This will bring down the overall exposure to foreign equity in the portfolio.

Therefore those investing to avail international exposure will be left disappointed till the limit is not raised.



"As of now we have no visibility on if / when and by how much the limit for overseas investments will be revised. If and when the limits are increased and if it is of a relatively small amount, the same will get exhausted soon. In such a scenario, having funds readily available will be advantageous rather than opening the scheme after the limit increase only to see the industry wide cap get breached again,"

"It is expected that over time, the weightage of foreign stocks in Parag Parikh Flexi Cap Fund will come down. As and when overseas investment limits are increased, we will rebalance the portfolio as per the then prevailing situation and valuations," 


    - Rajeev Thakkar, CIO & Director PPFAS

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