Parag Parikh Long Term Equity is now Parag Parikh Flexi Cap Fund

In order to comply with the recent circular of Securities & Exchange Board of India (SEBI) dated November 6, 2020, PPFAS Mutual Fund has changed the name of Parag Parikh Long Term Equity to Parag Parikh Flexi Cap Fund. According to the circular, a new category has been introduced namely, Flexi Cap fund. SEBI defines a Flexi-cap fund as an open-ended dynamic equity scheme that invests across large-cap, mid-cap, and small-cap stocks.

In the month of September, SEBI changed the rules for the multi-cap fund. This was done to make multi-cap fund be ‘true to its label’. And to do this, SEBI asked such funds to invest a minimum of 25 per cent of their assets each in large-cap, mid-cap, and small-cap stocks. Post this, there were a lot of speculations where people felt that a big selling may come into large-caps, and eventually, cause more buying in mid-caps and small-caps. However, keeping all such speculations at bay, SEBI introduced a new category in the equity scheme.

The scheme was launched in May 2013 and as of November 2020, its assets under management (AUM) stand at Rs 5,757.28 crore. This fund is among few such funds, which invest in a well-diversified portfolio, including domestic as well as international investment. This scheme invests up to 35 per cent of its assets in the overseas market. The fund has generated around 17.6 per cent compounded annual growth rate (CAGR) since inception.