December 23, 2025
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Is Parag Parikh Flexicap Fund the best Return Generator?
An analytical note with alternatives
Parag Parikh Flexi Cap Fund is unquestionably India’s most subscribed equity fund, with an AUM of nearly Rs. 1.30 lakh crore. Its popularity stems from a disciplined, value-oriented philosophy, global diversification, low portfolio churn, and strong downside protection. However, being the most subscribed does not automatically mean delivering the best returns across all time frames.
What the numbers really say
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Consistency over aggression: Parag Parikh Flexi Cap has delivered 21.43% (5Y) and 22.67% (3Y) returns—solid, but not the highest in the peer set.
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Risk-adjusted comfort: Its low turnover (12.67%), reasonable expense ratio (0.63%), and conservative positioning make it ideal for investors prioritising stability and capital protection.
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Size matters: With very large AUM, flexibility to take sharp sector or mid-cap calls is naturally limited—this can cap outperformance during strong bull phases.
Peers that have done better on returns
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HDFC Flexi Cap Fund has outperformed on 5-year returns (25.45%), while maintaining similar expense and turnover levels—making it a strong alternative for investors seeking higher long-term alpha.
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HDFC Focused Fund stands out with 26.58% (5Y) returns, indicating more decisive stock selection, though with a slightly higher concentration risk.
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SBI Focused Fund has delivered strong 1-year returns (17.14%), but its much higher churn (37%) suggests greater volatility and tactical positioning.
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ICICI Prudential Flexi Cap Fund, though younger, shows competitive numbers and may suit investors comfortable with a moderately higher risk profile.
The bottom line
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Parag Parikh Flexi Cap is an excellent core SIP fund for conservative, long-term investors who value downside protection and steady compounding.
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Investors purely chasing higher returns—and who can tolerate higher volatility—may consider HDFC Flexi Cap or HDFC Focused Fund as meaningful alternatives.
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The smart approach isn’t choosing the “most popular” fund, but selecting a fund that matches your risk appetite, time horizon, and return expectations—or even blending two complementary styles.
Sahifund View:
Popularity signals trust and consistency—not necessarily maximum returns. Diversifying across contrasting fund styles often delivers better outcomes than relying on a single star fund.
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https://sahifund.com/category/nfos/
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