PPFCF crosses Rs 1.25 lakh cr AUM, global bets on Microsoft, Alphabet, Amazon, Meta boost gains

The Parag Parikh Flexi Cap Fund (PPFCF), one of India’s most recognisable equity schemes, has reached a major industry milestone by crossing the Rs 1.25 lakh crore Assets Under Management (AUM) mark. As of October 31, 2025, the fund’s AUM stood at Rs 1,25,799.63 crore, according to data released by Parag Parikh Financial Advisory Services Ltd. (PPFAS). The scale is remarkable considering that in early 2023, its total AUM was only about Rs 30,000 crore. In less than three years, the fund has grown nearly fourfold, propelled by inflows, performance, and investor confidence.

Notably, the fund is currently sitting on over Rs 30,000 crore in cash, including debt, money market investments, and arbitrage positions. Cash and equivalents now make up 25.31% of the portfolio. Despite this elevated cash holding, PPFCF remains largely equity-oriented, with 65.97% invested in Indian equities and 11.5% allocated to overseas stocks.

PPFCF is classified as a flexi-cap fund, an open-ended equity scheme mandated by SEBI to invest at least 65% in equities, with full flexibility across market caps. The fund also has the option to allocate up to 35% to international equities. With its disciplined strategy, global diversification, and strong long-term performance, PPFCF continues to remain a preferred choice for investors seeking stability, international exposure, and long-term wealth creation.

Global allocation

A key feature distinguishing PPFCF from other flexi-cap schemes is its international exposure. The fund’s 11.5% overseas allocation is spread across four major U.S. technology stocks—Microsoft (2.68%), Alphabet (3.75%), Amazon (2.37%), and Meta Platforms (2.70%). All four appear within the scheme’s top 15 holdings.

These U.S. tech giants have generated strong returns over the past year, with Microsoft up 18%, Alphabet rising 57%, Amazon gaining 12%, and Meta advancing 5%. Their performance has contributed meaningfully to PPFCF’s position as one of the top-performing flexi-cap funds in the country.

Domestically, the fund’s top holdings include HDFC Bank, Power Grid Corporation, Bajaj Holdings, Coal India, and ITC. Collectively, these five stocks make up around 30% of the portfolio.

Metrics, NAV and expense ratios

As of October 31, 2025, the NAV for the Regular Plan of PPFCF stood at ₹86.4685, while the Direct Plan NAV was ₹94.4065. The fund’s expense ratio is 1.28% for the Regular Plan and 0.63% for the Direct Plan, inclusive of management fees and GST. PPFCF tracks the Nifty 500 TRI as its primary benchmark and the Nifty 50 TRI as its secondary benchmark.

Long-term track

Since its launch on May 24, 2013, PPFCF has consistently outperformed its benchmark indices. The Regular Plan has delivered 18.92% CAGR, while the Direct Plan has generated 19.77% CAGR, compared with returns of 15.21% (Nifty 500) and 13.84% (Nifty 50).

For the year ended October 2025, the fund posted 9.07% returns, outperforming both Nifty 500 (5.56%) and Nifty 50 (7.59%). Over the last decade, the scheme has delivered a robust 17.58% return, making it one of the most consistent performers in its category.

What's the strategy

PPFAS follows a conservative, valuation-driven approach. Fund managers maintain that decisions are based on company-level opportunities rather than broader market noise. With markets appearing overheated at times, the fund has chosen to hold large cash positions until attractive valuations emerge.

During periods of limited equity opportunities, PPFCF actively deploys funds into equity arbitrage, special situations arbitrage (such as open offers, delistings, or mergers), and short-term debt instruments. This tactical flexibility is central to the fund’s philosophy.