Latest news with #ParagParikh
Mint
22-05-2025
- Business
- Mint
5 timeless lessons from Parag Parikh's 'Stocks to Riches' on investor behaviour
First published in October 2005, Parag Parikh's ageless book, 'Stocks to Riches: Insights On Investor Behaviour', still remains a crucial read for both aspirational equity investors and investment professionals alike. Parag Parikh was a well renowned visionary investor in India. He was also a behavioural finance professional, author, and the founder of the Parag Parikh Financial Advisory Services (PPFAS) mutual fund. He was admired in the market circles for his deep and intense insights on human psychology and investing. Not only this he was an ardent follower of Warren Buffett and advocated long term value investing. His legacy lives on through his work and writings and the immense success of PPFAS mutual fund, which continues to uphold his investment philosophy. His book focuses on blending behavioural finance with practical equity market wisdom. It details how human psychology and biases influence investment decisions in the financial world. With decades of experience in well planned value investing, Parikh draws on real-life examples to spread awareness among investors against unproductive and flawed investment behaviour. Here are five core insights from the book that continue to hold immense value even in today's volatile markets: Parikh throws light on loss aversion as a key emotional trap. 'The pain of losing is psychologically about twice as powerful as the pleasure of gaining,' he elaborates. The objective of writing this is to explain why investors often sell winning stocks early and hold on to losing ones. This instinctive fear distorts prudent decision making and rational judgement. Hence, on the part of investors one should consistently review their portfolio objectively. Focus should be on building long term wealth and not on short term market fluctuations and swings. Wealth can only be built by maintaining calmness, long term vision and composure throughout the investment journey. Mental accounting simply refers to treating money differently based on its origin or purpose according to Parikh. He strongly warns against this bias stating that, "People invest bonus money more recklessly than salary savings because they see it as a windfall." Such practices can push investors to poorly thought-out and erratic financial decisions. Therefore, as an investor you should consolidate your funds and base investment decisions on clear financial goals. You should also be careful while spending apparently 'free' looking money such as a lottery win in a responsible manner as per your long term financial goals. Many investors are reluctant to sell underperforming stocks because they have already put money into it and are on the losing end, due to this they are unable to take fair calls in a short period of time. To deal with the same challenge, Parikh urges readers to 'ignore the past and evaluate the present potential.' This difficult to overcome behavioural bias keeps people tied to bad investments. The focus here is to exit loss making positions in stocks and mutual funds after carefully analysing their fundamentals. The book quite intensely discusses the perils of following and going with the crowd. 'Investors are often influenced by what others are doing rather than what they should be doing,' Parikh writes. This can result in the creation of asset bubbles and consequently result in panic selling. The dot com bubble of 2000-01 and the housing bubble of 2007-08 in the US are some of the most recent examples of the creation of asset bubbles. If not side-stepped efficiently, such bubbles can even result in epic wipe out of wealth. Parikh hence wants investors to carry out thorough research and avoid participating in such market bubbles to conserve wealth. Parikh firmly supports long-term value investing. He argues that short-term market movements often reflect emotion, not logic. 'Markets are driven by greed and fear, not by fundamentals.' This simply means that one should ignore temporary noise, market declines or fluctuations and invest in only those businesses that have sustainable value. This is the simplest way to build wealth on a long term basis. The focus at all times is on the power of compounding and investing in those businesses that have the potential to showcase solid results and strong earnings compounding. For more details on the same you can refer to the official link of the book: PPFAS Knowledge Centre – Book Section Disclaimer: This article is for informational purposes only and does not constitute financial advice. Readers should consult a qualified financial advisor before making any investment decisions.
Economic Times
12-05-2025
- Business
- Economic Times
Best flexi cap mutual funds to invest in May 2025
Live Events Best flexi cap schemes to invest in May 2025 Parag Parikh Flexi Cap Fund HDFC Flexi Cap Fund (new addition) UTI Flexi Cap Fund PGIM India Flexi Cap Fund Aditya Birla Sun Life Flexi Cap Fund SBI Flexi Cap Fund Canara Robeco Flexi Cap Fund Many mutual fund investors, especially the new and inexperienced investors, are extremely concerned about the current volatility and uncertainties in the market. They don't know whether to bet on the large caps or mid cap or some others. Also, they wonder how they will know when to switch from one category to another when the market mood changes. Are you in the same boat? Here is an easy way out. You can consider investing in flexi cap mutual funds Flexi cap mutual funds offer the fund managers the freedom to invest across market capitalisations and sectors/themes. It means the fund managers can invest anywhere based on his outlook on the market. Flexi cap schemes are typically recommended to moderate investors to create wealth over a long period of time. Ideally, one should invest in these schemes with an investment horizon of five to seven said earlier, these schemes have the freedom to invest anywhere depending on the view of the fund manager. For example, he or she might invest more in large cap stocks. Or in a bull market she might invest more in mid cap or small cap stocks. Investors should be extremely careful about this aspect. Investors should make sure that they are choosing a scheme that is in line with their risk appetite. For example, some flexi cap schemes may be more conservative than others. It is for you to identify the one that suits your you are planning to invest in flexi cap funds, here are our recommendations. We will closely watch the performance of these schemes and update you about it every Birla Sun Life Flexi Cap Fund has been in the second quartile in the last two months. The scheme had been in the third quartile earlier. UTI Flexi Cap Fund has been in the fourth quartile for 24 months. Canara Robeco Flexi Cap Fund has been in the third quartile for 23 months. PGIM India Flexi Cap Fund has been in the fourth quartile for 15 months. HDFC Flexi Cap Fund has been in the first quartile in the last two months. Parag Parikh Flexi Cap Fund has been in the first quartile in the last two months. has employed the following parameters for shortlisting the equity mutual fund daily for the last three Exponent, H is used for computing the consistency of a fund. The H exponent is a measure of randomness of NAV series of a fund. Funds with high H tend to exhibit low volatility compared to funds. The H exponent is a measure of randomness of NAV series of a fund. Funds with high H tend to exhibit low volatility compared to funds with low H.i) When H = 0.5, the series of returns is said to be a geometric Brownian time series. This type of time series is difficult to When H is less than 0.5, the series is said to be mean When H is greater than 0.5, the series is said to be persistent. The larger the value of H, the stronger is the trend of the seriesWe have considered only the negative returns given by the mutual fund scheme for this measure.X = Returns below zeroY = Sum of all squares of XZ = Y/number of days taken for computing the ratioDownside risk = Square root of ZIt is measured by Jensen's Alpha for the last three years. Jensen's Alpha shows the risk-adjusted return generated by a mutual fund scheme relative to the expected market return predicted by the Capital Asset Pricing Model (CAPM). Higher Alpha indicates that the portfolio performance has outstripped the returns predicted by the returns generated by the MF Scheme =[Risk Free Rate + Beta of the MF Scheme * {(Average return of the index - Risk Free Rate}For Equity funds, the threshold asset size is Rs 50 crore
Time of India
12-05-2025
- Business
- Time of India
Best flexi cap mutual funds to invest in May 2025
Investors should make sure that they are choosing a scheme that is in line with their risk appetite. For example, some flexi cap schemes may be more conservative than others. It is for you to identify the one that suits your temperament. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Popular in MF 1. Mother's Day Special: How to secure her future with smart financial planning Best flexi cap schemes to invest in May 2025 Parag Parikh Flexi Cap Fund HDFC Flexi Cap Fund (new addition) UTI Flexi Cap Fund PGIM India Flexi Cap Fund Aditya Birla Sun Life Flexi Cap Fund SBI Flexi Cap Fund Canara Robeco Flexi Cap Fund Tired of too many ads? Remove Ads Many mutual fund investors, especially the new and inexperienced investors, are extremely concerned about the current volatility and uncertainties in the market. They don't know whether to bet on the large caps or mid cap or some others. Also, they wonder how they will know when to switch from one category to another when the market mood changes. Are you in the same boat? Here is an easy way out. You can consider investing in flexi cap mutual funds Flexi cap mutual funds offer the fund managers the freedom to invest across market capitalisations and sectors/themes. It means the fund managers can invest anywhere based on his outlook on the market. Flexi cap schemes are typically recommended to moderate investors to create wealth over a long period of time. Ideally, one should invest in these schemes with an investment horizon of five to seven said earlier, these schemes have the freedom to invest anywhere depending on the view of the fund manager. For example, he or she might invest more in large cap stocks. Or in a bull market she might invest more in mid cap or small cap stocks. Investors should be extremely careful about this aspect. Investors should make sure that they are choosing a scheme that is in line with their risk appetite. For example, some flexi cap schemes may be more conservative than others. It is for you to identify the one that suits your you are planning to invest in flexi cap funds, here are our recommendations. We will closely watch the performance of these schemes and update you about it every Birla Sun Life Flexi Cap Fund has been in the second quartile in the last two months. The scheme had been in the third quartile earlier. UTI Flexi Cap Fund has been in the fourth quartile for 24 months. Canara Robeco Flexi Cap Fund has been in the third quartile for 23 months. PGIM India Flexi Cap Fund has been in the fourth quartile for 15 months. HDFC Flexi Cap Fund has been in the first quartile in the last two months. Parag Parikh Flexi Cap Fund has been in the first quartile in the last two months. has employed the following parameters for shortlisting the equity mutual fund daily for the last three Exponent, H is used for computing the consistency of a fund. The H exponent is a measure of randomness of NAV series of a fund. Funds with high H tend to exhibit low volatility compared to funds. The H exponent is a measure of randomness of NAV series of a fund. Funds with high H tend to exhibit low volatility compared to funds with low H.i) When H = 0.5, the series of returns is said to be a geometric Brownian time series. This type of time series is difficult to When H is less than 0.5, the series is said to be mean When H is greater than 0.5, the series is said to be persistent. The larger the value of H, the stronger is the trend of the seriesWe have considered only the negative returns given by the mutual fund scheme for this measure.X = Returns below zeroY = Sum of all squares of XZ = Y/number of days taken for computing the ratioDownside risk = Square root of ZIt is measured by Jensen's Alpha for the last three years. Jensen's Alpha shows the risk-adjusted return generated by a mutual fund scheme relative to the expected market return predicted by the Capital Asset Pricing Model (CAPM). Higher Alpha indicates that the portfolio performance has outstripped the returns predicted by the returns generated by the MF Scheme =[Risk Free Rate + Beta of the MF Scheme * {(Average return of the index - Risk Free Rate}For Equity funds, the threshold asset size is Rs 50 crore
Time of India
29-04-2025
- Business
- Time of India
Rs 100 crore goal: 28-year-old reveals his SIP strategy to retire rich — netizens react
Live Events Kotak Emerging Equity Fund Parag Parikh Flexi Cap Fund ICICI Prudential Smallcap Fund Tata Large and Midcap Fund Canara Robeco Smallcap Fund ICICI Large and Midcap Fund DSP Equity Opportunities Fund (You can now subscribe to our (You can now subscribe to our Economic Times WhatsApp channel A 28-year-old aspiring to build a Rs 100 crore investment portfolio has shared his financial strategy on Reddit, sparking widespread his post, the anonymous user revealed that he currently lives with his parents and has no children. For the past five years, he has been aggressively investing a significant portion of his salary. He currently invests Rs 45,000 per month via SIPs and an additional Rs 10,000 in direct also disclosed that he had been investing Rs 10,000 per month in cryptocurrencies, which has now grown to Rs 5 lakh, although he has since stopped adding to it. His current equity portfolio is worth Rs 25 lakh.'As of now, my parents have been supporting me, which allowed me to build this corpus. I'll be moving out in the next six months and will have to manage my household expenses myself. It's exciting but scary. I don't want to dip into my savings, so my SIPs might reduce or even stop — I'm not sure yet, since I don't know what my expenses will look like. Being young, I want my investments to grow rapidly but without taking excessive risks,' he wrote, asking fellow Redditors if he should focus on specific also shared a screenshot of his mutual fund holdings , which include:One Reddit user commented that to reach a Rs 100 crore target, he would need to invest Rs 70,000 per month consistently for 30 added, 'You'll easily surpass Rs 100 crore — around Rs 118.5 crore — if you stay disciplined with your investments until age 60. Your current portfolio is about Rs 47 lakh (Rs 25L in equity, Rs 17L in mutual funds, Rs 5L in crypto). At 15% CAGR over the next 32 years, this alone could grow to Rs 41.15 crore. If you continue your Rs 45,000 monthly SIP and increase it by 10% annually, it could grow to Rs 77.5 crore. Combined, that gives you Rs 118.5 crore — assuming 15% CAGR, which is achievable.'However, not everyone was optimistic. A different commenter warned: 'The era of 15–18% compounded returns may be over. Going forward, 10–12% may be the new normal, and even below 10% beyond this decade.'
Mint
22-04-2025
- Business
- Mint
Best Mutual Funds: These 10 flexi cap schemes gave over 23% annualised return in the past five years. Check list
If you are planning to invest in a mutual fund scheme, it is recommended to examine its past returns and compare them with similar schemes in the same category. This can give you a fair idea of which schemes are performing well and also their potential for future growth. Here, we give a lowdown on the past five-year returns delivered by flexi-cap mutual funds. For those who are not aware, flexi-cap mutual funds refer to schemes that have the flexibility to invest across market capitalisation, i.e., mid-cap, small-cap, and large-cap in any ratio. These schemes are also supposed to invest a minimum of 65 per cent of assets in equity and equity-related instruments, per Sebi's categorisation of mutual fund schemes. There are 39 schemes in the category of flexi cap mutual funds, with a total asset size of ₹ 4.35 lakh crore. Ten schemes have delivered more than 23 per cent annualised returns in the past five years. As seen in the table below, Quant Flexi Cap has delivered 35.25 per cent annualised return while HDFC Flexi Cap has given 31.32 percent return. This means if someone had invested ₹ 1 lakh five years ago in the Quant Flexi Cap Fund, it would have grown to ₹ 4.52 lakh and ₹ 3.90 lakh in the HDFC Flexi Cap Fund. Flexi Cap Mutual Funds 5-year-return (%) JM Flexi Cap Fund 28.60 PGIM India Flexi Cap 24.84 Parag Parikh Flexi Cap Fund 28.32 Quant Flexi Cap Fund 35.25 Union Flexi Cap Fund 23.93 DSP Flexi Cap Fund 23.68 Edelweiss Flexi Cap Fund 25.32 Franklin India Flexi Cap Fund 28.70 HDFC Flexi Cap Fund 31.32 HSBC Flexi Cap Fund 24.93 Other schemes that have given exceptional returns include JM Flexi Cap Fund, PGIM Flexi Cap Fund and Parag Parikh Flexi Cap Fund. Meanwhile, it is important to note that past returns are only indicative and do not assure future returns. Just because a scheme has given exceptional returns does not mean it will continue to give the same returns in the future. Visit here for all personal finance updates. Note: This story is for informational purposes only. Please speak to a SEBI-registered investment advisor before making any investment-related decision. First Published: 22 Apr 2025, 04:24 PM IST
