Introduction
A market has various capitalizations, including large cap, mid cap, and small cap. This fund focuses on specific sizes of companies. In this variety, the Parag Parikh Flexi Cap Fund holds a unique place. The reason behind this is that it consists of various market capitalizations.
This fund can allocate its assets across large, mid, and small-cap funds. The PPFAS Mutual Fund provides both local and global investment options. This fund also offers a disciplined and balanced investment approach. These unique funds offer exposure to your portfolio with diversification in investments. The fund managers have more room to explore sectors offering good returns at any time.
Additionally, it allows investors to benefit from both international and national markets. Also, balance the market risks. This fund can adjust dynamically to market conditions to gain higher returns. The combination of value-focused investing gives this PPFAS Mutual Fund consistency and reliability.
This article gives you information about the scheme with different aspects such as advantages, risk factors, etc.
Why invest in the Parag Parikh Flexi Cap Fund?
There are the following reasons that ensure you invest in this scheme:
1. Long-term Investment
Different sectors of varying sizes are involved in this scheme. Established sectors and companies provide long-term growth benefits while emerging companies offer market stability over time.
2. Global Investment
This fund has global investments that give your portfolio a global portfolio. This fund invests its assets in foreign stocks to gain highs. International companies, including Amazon, Microsoft, and Google, perform well in the global market. With this leading companies’ growth. This fund provides you with an opportunity to benefit globally.
3. Diversification
The fund includes companies of various sizes and risk levels. The large-cap and mid-cap companies give you stability, while the small-cap companies give you more returns. The investment in this scheme gives you a variety of investments. As a result, your portfolio becomes unique with stability and growth.
4. Flexibility
As a Flexi Cap fund, it allocates investments across various companies. It also dynamically adjusts the allocations based on market conditions to achieve higher earnings.
5. Risk Management
By diversifying asset allocations across various sectors and regions, we can improve our investment strategy. The Parag Parikh Flexi Cap Fund mitigates the risks and works as a hedge during the inflation period.
6. Team Management
The PPFAS Mutual Fund is managed by a skilled and experienced team. They have a strong track record and analysis in market research. They develop wealth-building strategies while concentrating on the essentials.
With the knowledge of the good side of the scheme, let’s move on to look at the other side of the scheme, which includes the risk factors.
What are the Risk Factors of the Parag Parikh Flexi Cap Fund?
The following risk factors give you understanding in making decisions:
1. Currency Risk
Since this scheme invests in international equities, it has currency risk. The exchange rate between the Indian rupee and other currencies can affect the fund’s foreign holdings. In return, this affects your earnings through the scheme.
2. Volatility
The combination of local and international equities has moderate volatility. Market fluctuations lead to significant impacts on sector returns. This may be uncomfortable for you in seeking stability.
3. Expense Ratio
The management team’s market strategies and analysis have higher fees. This higher fee can impact your net returns, as fees are deducted from the fund’s profits.
4. Limited Short-term Growth
This fund emphasizes steady wealth creation and stability. This steady growth requires a long-term horizon. This limits your potential for achieving short-term goals.
5. Global Market Conditions
While international investments provide diversification to your portfolio. The fund’s performance affects your earnings during global market fluctuations.
Along with the features and risks, let’s move on to check the criteria for investing in the scheme.
Who is Suitable for the Parag Parikh Flex Cap Fund?
Here are the criteria that give you an understanding of whether you invest in the scheme or not:
· Long-term Investors
Steady growth and wealth creation require long-term investments. If you are willing to stay invested for 5-7 years or more. This scheme benefits you with gradual wealth accumulation.
· Risk Tolerance
Parag Parikh Flexi Cap Fund is volatile. Due to the combination of domestic and international investments, it has moderate risks. If you can handle market fluctuations during global and local downturns. This fund is better suited for you.
· Diversification Seeker
Along with local investments, foreign investment gives exposure to explore sectors globally. If you are looking beyond Indian markets and a balanced portfolio. This scheme suits you well with a variety of investments.
· High-Growth Seekers
The fund addresses long-term growth with strategies seeking high growth. If you are willing to stay positioned in the global as well as in the local market with high earnings. Then this fund provides you with high growth and earnings for your future upliftment.
With the knowledge of the suitability for the scheme, let’s learn the steps to follow for investing in the scheme.
How can you invest in the Parag Parikh Flexi Cap Fund?
The mentioned steps will guide you to invest in the scheme:
1. Decide Investment
The scheme has provided options for investment routes. The lump sum investment initiates with a huge amount for investment. On the other hand, systematic investment plan is a regular investment process. It can be initiated with a small amount.
2. KYC Verification
Complete your KYC (Know Your Customer) authentication by giving the essential documents. Verification requires your PAN card, Aadhar Card, passport-sized photograph, etc.
3. Invest through Platforms
There is an official website of fund house to start investing. Also, there are online investment options and financial advisors.
4. Manage Investments
After investing, you can monitor your investments’ performance. Accordingly, you can adjust your investment based on your circumstances.
Let’s bind the whole description of the scheme in the summary.
Conclusion
The scheme is a unique blend of stability and growth. This offers different-sized sectors for investments. Moreover, it provides foreign investments with balanced diversification.
This not only helps you manage the risks but also gives long-term growth potential. This scheme allows SIP investment strategy. This is a regular investment strategy that can start with a small amount of investment. This investment has well-researched strategies. Along with this, it allows you to adjust and pause the investment based on your financial goals and circumstances.