Latest news with #ParagParikhFlexiCapFund
Mint
a day ago
- Business
- Mint
Direct stocks vs mutual funds vs smallcases vs assisted investing: What's your best path to equity wealth?
In 2001, BSE had about 2,127 listed companies. Fast forward to 2025, that number has swelled past 5,600+. More choices should mean more opportunity. Instead, it has created a paradox of choice. Finding the right company has become like finding a needle in a haystack. Mutual funds were born to solve this complexity. Investors could hand over their money to professionals and avoid the hard work of picking stocks individually. But success breeds competition. In 2006, there were ~592 mutual fund schemes; today, there are 1,700+. The problem simply shifted from picking the right stock to picking the right fund. Smallcases arrived in 2016, curated stock baskets, and were investable in one click. But as they grew popular, they multiplied. Now, 500+ Smallcase baskets by 200+ RIAs. The best way to answer: What can go wrong? We can assure that you can't make the right decision by simply doing a textbook analysis, looking at past returns, or studying risk-return graphs. When you pick stocks directly yourself, three truths surface. It consumes time. Between balance sheets, market news, and earnings calls, stock picking demands more hours than most day jobs. The learning curve is steep. Markets are brutal teachers, and it takes decades of consistent study, mistakes, and refinement. The return on effort is often underwhelming. Spend months researching and invest ₹ 1 lakh, an index fund may return 12%, while beating it with 15% usually happens only in easy bull markets, rarely in tough ones. Is the extra ₹ 3,000 worth hundreds of hours? Probably not. The harsh truth is that direct investing rarely justifies the effort with small direct investing feels complex, mutual funds seem like the opposite: simple, efficient, and professionally managed. But here's the reality: it's investors who control the timing. When markets crash, retail investors panic and redeem, while fund managers are forced to sell at low prices. During the COVID-19 crash, Parag Parikh Flexi Cap Fund's (formerly known as long-term equity fund) AUM fell from ₹ 2,794 Cr. to ₹ 2,448 Cr. in just March 2020, because investors panicked and pulled money out. At the same time, regulations mandate staying 70–80% invested in equity, even when markets are at their peak. Fund managers are compelled to buy at overvalued levels, and your returns depend not just on the market but also on the behaviour of other investors. There's another hidden flaw: lack of transparency. You don't see the thinking behind a portfolio. Fund managers don't disclose why they picked a stock or how their thesis evolves. You invest, but you don't learn from them. For curious investors, it's a frustrating black box. Now, let's turn to Smallcases, a newer innovation in equity investing. Many ask,"Why isn't Finology available as a Smallcase?"Fair question. We were among the earliest publishers and tried it for a few months. Smallcases offers curated baskets you can buy with one click, but there were limitations we couldn't ignore. When we recommend stocks in Finology 30, our research guides investors with a"Max Buy Price." If a stock we recommended at ₹ 100 moves to ₹ 180 and our research reveals it's overvalued, we advise new investors to wait. Existing investors should hold, not exit. Source: Finology Research Desk Smallcase doesn't allow this. Either the stock stays and everyone buys at inflated prices, or we rebalance and force out existing investors, too. It's a binary choice: Buy or Sell. There's another problem: frictionlessness. Smallcase makes trading effortless, with one click to rebalance. Sounds convenient, but easy trading fuels impulse. The brokerage earns, the government collects taxes, and the investor loses. Inconvenience protects you from bad decisions. Without it, Smallcases risk turning disciplined investors into frequent traders. Assisted investing via model portfolios, research reports, or advisors offers a blend of tailored advice, professional insights, and personal control. But trust and transparency are the main challenges. The market is flooded with unregistered advisors masquerading as SEBI-registered, promising 50% returns with manipulated track records & testimonials. Real advisors admit markets are uncertain, consistent outperformance is rare, and patience beats prediction. The good news: Platforms like smallcase filter out fraudsters, allowing only SEBI-registered entities. With a credible advisor, assisted investing opens a new world of direct access to research, deeper control over your portfolio, and freedom to adjust allocations. Don't like a stock? Skip it. Conviction high? Increase it. It's a middle ground between mutual funds and DIY investing. You have three broad paths to choose from: DIY — direct stock picking — direct stock picking Managed — mutual funds or Smallcases — mutual funds or Smallcases Assisted investing — guided research and advisory services. If you can invest 2–4 hours a week, DIY is the best long-term strategy because it guarantees competitive returns with zero fees. Early on, you might underperform mutual funds, but you will get something more valuable: superior instinct. Reading annual reports and studying industry changes, and how macroeconomic events affect companies. If you're too busy with work, family, or health, mutual funds are your best bet for professional management, SIP automation, and peace of mind. Smallcases offer curated portfolios without the heavy lifting like in DIY, though flexibility is limited, and here also, you don't get to learn anything. Assisted investing sits slightly higher on the control-insight ladder. You get research reports and understand why a stock is picked, not just which one. You learn, adjust, and gradually sharpen your instincts. Of course, there's a cost. If the advisory fee is ₹ 12,000 and you're investing ₹ 1 lakh, that's a steep 12%. Assisted investing can be a backdoor to DIY. You start with expert guidance, and over time, as you follow research and manage allocations, you find yourself ready to go fully independent to manage significant capital that financial rewards meaningfully in the longer term. It's the bridge that transitions you from a passive investor to an active stock market participant. Finology is a SEBI-registered investment advisor firm with registration number: INA000012218. Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
Time of India
a day ago
- Business
- Time of India
Parag Parikh Flexi Cap Fund adds Bharti Airtel and Nesco to its portfolio in May
Parag Parikh Flexi Cap Fund, the largest flexi cap fund by assets under management, added two new stocks to its portfolio in May — Bharti Airtel and Nesco. The fund purchased around 1.17 crore shares of Bharti Airtel and 89,469 shares of Nesco during the month. The fund did not exit any stock in the same period. It increased its exposure in eight stocks, including Zydus Lifesciences , Power Grid Corporation of India , Mahindra & Mahindra, ITC, HDFC Bank , EID Parry India , Coal India , and Cipla. Also Read | Quant Small Cap Fund increases stake in Jio Financial Services, NCC and reduces in Aadhar Housing Finance Best MF to invest Looking for the best mutual funds to invest? Here are our recommendations. View Details » by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Play War Thunder now for free War Thunder Play Now Undo Around 1.52 crore shares of Power Grid Corporation of India were added to the portfolio, taking the total holding to 20.88 crore shares in May, up from 19.36 crore in April. The fund also added 73.57 lakh shares of Coal India, followed by 39.99 lakh shares of ITC during the same period. The total number of Mahindra & Mahindra shares in the portfolio rose to 1.22 crore in May from 1.10 crore in April, with 11.91 lakh shares added. Additionally, 8.87 lakh shares of Cipla and 4.80 lakh shares of HDFC Bank were added during the month. Live Events The fund also included 3.22 lakh shares of Zydus Lifesciences and 2.54 lakh shares of EID Parry India in its portfolio in May. Exposure in 14 stocks remained unchanged, including Axis Bank, Bajaj Holdings & Investment, Central Depository Services (India), ICICI Bank , ICRA, Indian Energy Exchange , Infosys, Maharashtra Scooters , Kotak Mahindra Bank , Maruti Suzuki India , Swaraj Engines , and Multi Commodity Exchange of India. The fund held 28 stocks in its portfolio in May, up from 26 in April. Its assets under management (AUM) stood at Rs 1.03 lakh crore in May, compared to Rs 98,541.28 crore as of April 30, 2025. Also Read | Parag Parikh Flexicap Fund crosses Rs 1 lakh crore AUM: Neil Parikh Launched on May 24, 2013, the scheme is managed by Rajeev Thakkar, Raunak Onkar, Raj Mehta, Rukun Tarachandani, and Mansi Kariya. It is benchmarked against the NIFTY 500 (TRI), and the minimum investment amount for new purchases, additional purchases, and monthly SIPs is Rs 1,000. Last month, the Chairman and CEO of PPFAS Mutual Fund , Neil Parikh, announced on social media that the Parag Parikh Flexi Cap Fund had crossed Rs 1 lakh crore in assets under management (AUM). Parikh called it the first actively managed scheme in India to reach this milestone. He wrote on social media platform X, 'I don't normally talk about AUM or have any AUM-based targets in our organization, but today is special… PPFAS Flexi Cap crossed Rs 1 lakh crore AUM today. I believe it is the first actively managed scheme to do so in India.'
News18
19-05-2025
- Business
- News18
Want Rs 1 Crore? How Only Rs 4,800 Monthly Saving Can Make You A Crorepati
Last Updated: Here's how you can create a corpus of Rs 1 crore in 10, 15, or 20 years with minimum monthly savings using SIP and step-up SIP strategies. Securing your financial future should be one of the top priorities, as it reduces stress during the higher ages. For this, saving is a must. The earlier you start saving, the bigger corpus you will end up creating with less effort. Saving your money without investing it anywhere will have a negative effect as inflation will erode away your money over the years. Here's how you can create a corpus of Rs 1 crore in 10, 15, or 20 years with minimum monthly savings: Financial experts suggest mutual funds (MFs) are one of the effective ways to create your wealth and beat inflation. Investments in mutual funds can be done monthly or lump sum. Monthly investment in mutual funds is called a systematic investment plan (SIP). A step-Up SIP is a systematic investment plan where you increase your monthly investment amount by a fixed percentage each year — let's say, 10 per cent. This helps align your investments with your growing income and reduces the initial burden. The Financial Plan To Reach Rs 1 Crore Target Corpus: Rs 1 crore Expected Return: 12% per annum Investment Horizon: 10, 15, and 20 years Equity mutual funds and index funds in India have historically delivered 10–14 per cent annualised returns over the long term. We use 12 per cent as a conservative yet realistic return assumption. How Much To Invest Monthly — With and Without Step-Up SIP? In order to save Rs 1 crore in 15 years, you need a monthly SIP of Rs 23,000 (without step-up). However, if you raise your SIP by 10% every year, you will require Rs 9,000 per month initially. In order to create a corpus of Rs 1 crore in 20 years, you need a monthly SIP of Rs 4,800 only for the first year. However, it will have to be increased by 10 per cent every year. Here's the table indicating SIP amount (with or without step-up) to create a wealth corpus of Rs 1 crore: Monthly SIP Amount Required to Reach Rs 1 Crore Note: Step-up SIP assumes a 10% increase in monthly contribution every year. Where Should You Invest This SIP? The SIP amount will be invested in mutual funds — flexi cap funds, large- & mid-cap funds, mid-cap funds, small-cap funds, and index funds. These are the classification based on the size or the company and the risk profile of the investor. While index funds typically give an annual return of 12-14 per cent, mid-cap and small-cap can give a CAGR of around 18 per cent in the long term. However, small-cap and mid-cap funds carry relatively higher risk. Some of the popular mutual fund schemes are Parag Parikh Flexi Cap Fund, JM Financial Flexi Cap, Motilal Mid Cap Fund, HDFC Mid Cap Fund Opportunity Fund, Kotak Emerging Equity Fund, Nippon India Small Cap Fund, Axis Small Cap Fund, and Bandhan Small Cap Fund. How to Choose the Right SIP Fund? Tip: For passive investors, Index Funds or ETFs offer simplicity and low cost. Mutual Funds are subject to market risks. They also carry expense ratio, which are charged irrespective of the returns you make. One same mutual fund scheme might have different expense ratio on different platforms — go for cheaper one. There is an exit charge also if you redeem within a particular period, let's say within 90 days. What Will Be The Value Of Rs 1 Crore After 20 Years, 30 Years, and 50 Years? As the years pass, the money loses its value due to inflation. The value of Rs 100 is significantly lower than what it used to be 30 years ago. After 20 years, Rs 1 crore will only be worth about Rs 31.18 lakh in today's terms due to inflation. After 30 years, Rs 1 crore will be worth around Rs 17.41 lakh in today's currency. top videos View all After 50 years, Rs 1 crore will only be worth about Rs 5.43 lakh in today's terms due to the compounding effect of inflation. So, it is necessary to do financial planning after considering the inflation effect. First Published:
Economic Times
02-05-2025
- Business
- Economic Times
Planning to start SIP to buy a house in Bangalore? Experts offer help
Vishal Dhawan, CEO, Plan Ahead Wealth Advisors, a wealth management firm in Mumbai. Live Events Sagar Shinde, VP of Research at Fisdom Chethan Shenoy, Director and Head - Product & Research of Anand Rathi Wealth Limited Three Reddit users in the mutual fund community have sparked an online debate with starting their mutual fund investments of which two have a financial goal of buying an apartment in Bangalore within the next 5-10 of these three users, two are above 30 years of age whereas one is 23 years old who has planned to start investment in two flexi cap funds - Parag Parikh Flexi Cap Fund and HDFC Flexi Cap Read | Can a Rs 1 lakh monthly SIP buy you a Bangalore apartment in 10 years? Many users suggested investing in Nifty based index funds, balanced advantage funds, and to add gold funds as well. ETMutualFunds reached out to a few experts who offered help for the first time the first time or to young investors, Dhawan recommends that equity-oriented mutual funds could be a good asset for investment as they can benefit from compounding and at the same time gold should make up a certain portion of their investment, with a view to reducing portfolio volatility with low correlation with other asset classes.'The allocation of gold can increase or decrease to a certain extent based on the key factors that affect gold and mutual funds,' he recommended that to begin their journey, new investors can even start with hybrid funds — which invest in both equities and debt — offering a more balanced, less volatile explained that SIPs (Systematic Investment Plans) in such funds help in developing a disciplined investment habit and gold, while a good hedge, should form only about 10–15% of the portfolio for diversification purposes, rather than being the primary investment Read | Is buying Nifty 50 ETFs on every 1% dip a smart strategy? Mutual fund expert offers help 'For first-time or new investors, the first step would be to figure out your goals and investment horizon. Understand your risk and return objectives and then pick an appropriate asset allocation strategy to be followed in accordance with your risk and return appetite. A mix of equity and debt in the right proportions would be ideal, as they have low correlation with each other and provide portfolio diversification benefits,' Shenoy should always make an investment decision based on investment horizon, risk appetite, and goals.(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)If you have any mutual fund queries, message on ET Mutual Funds on Facebook/Twitter. We will get it answered by our panel of experts. Do share your questions on ETMFqueries@ along with your age, risk profile, and Twitter handle.
Mint
01-05-2025
- Business
- Mint
Investment of ₹1 lakh in 2013 in THIS mutual fund would have grown to around 8 lakh now. Check how
It is not uncommon to examine the past returns of a scheme before you decide to invest in it. Typically, investors assess the historical returns of a mutual fund scheme across different time lines before deciding to invest in it. Here, we assess the past returns of Parag Parikh Flexi Cap Fund, which was launched on May 24, 2013. For the uninitiated, a flexi cap fund is the one where fund manager is free to determine the ratio of allocation to stocks across market capitalisation i.e., large cap, mid cap and small cap as long as total exposure to equity and equity related instruments is 65 percent or higher. Tenure ₹ 1 lakh becomes Return (%) 1 year ₹ 1.13 lakh 13.85 3 years ₹ 1.59 lakh 16.88 5 years ₹ 3.75 lakh 30.35 10 years ₹ 4.8 lakh 17.07 Since inception (May 24, 2013) ₹ 7.89 lakh 19.04 As we can see in the table above, if someone had invested ₹ one lakh in Parag Parikh Flexi Cap Fund one year ago, it would have grown to ₹ 1.13 lakh by growing at the rate of 13.85 percent. In three years, the investment of ₹ one lakh would have grown to ₹ 1.59 lakh by delivering a return of 16.88 per cent per annum. And if someone had invested ₹ 1 lakh five years ago, it would have grown to ₹ 3.75 lakh, thus delivering a return of 30.35 percent. In 10 years time, the same invesment of ₹ 1 lakh would have grown to ₹ 4.8 lakh, thus delivering a return of 17.07 percent. And if someone had invested ₹ one lakh at the time of scheme's launch in May 2013, the investment would have grown to ₹ 7.89 lakh, giving an annualised return of 19.04 percent. This 12-year-old scheme has a total asset size of ₹ 93,440 crore as on March 31, 2025, as per the information on PPFAS website. The benchmark index of the scheme is Nifty500. And the scheme is managed by Rajeev Thakkar, Raunak Onkar, Raj Mehta, Rukun Tarachandani and Mansi Kariya. Its constituent stocks include HDFC Bank, Bajaj Holdings and investment, Coal India, Power Grid Corporation, ICICI Bank, Kotak Mahindra, ITC and Maruti Suzuki. Note: This story is for informational purposes only. Please speak to a SEBI-registered investment advisor before making any investment related decision. Visit here for all personal finance related updates. First Published: 1 May 2025, 01:55 PM IST
