Why PPFAS Flexi Cap Fund is raising equity exposure and what it is buying

Parag Parikh Financial Advisory Services (PPFAS) appears to have adopted a more aggressive equity stance in April 2026 as its flagship Parag Parikh Flexi Cap Fund crossed the Rs 1.40 lakh crore assets under management (AUM) milestone amid strong investor inflows into flexi cap mutual funds.

According to the latest monthly portfolio disclosure, the fund increased domestic equity exposure, reduced arbitrage positions and added to several large-cap and defensive stocks, signalling growing conviction in selective market opportunities despite ongoing volatility.

The development comes at a time when flexi cap funds continue to dominate mutual fund inflows. According to AMFI data, flexi cap funds attracted net inflows of Rs 10,147.85 crore in April 2026, marking the second consecutive month of inflows above Rs 10,000 crore.

The category has also emerged as the largest equity mutual fund segment by AUM, with total assets rising to Rs 5.59 lakh crore in April.

Equity allocation

The Parag Parikh Flexi Cap Fund’s total equity allocation rose to 80.39% in April from 77.34% in March. Domestic equity exposure increased to 68.59% from 66.75%, reflecting fresh deployment of idle cash and reduction in arbitrage positions.

The move suggests the fund management team, led by Rajeev Thakkar, is gradually turning more constructive on valuations and long-term opportunities in the market.

Even after deploying more capital into equities, the scheme maintained cash holdings of 15.51%, providing room to utilise further corrections if needed.

The portfolio changes also reflected PPFAS’ traditional value-investing strategy focused on businesses with strong cash flows, durable competitive advantages and relatively stable earnings visibility.

ITC, HDFC Bank, TCS

The fund increased holdings in several large-cap and defensive names during April.

Among the biggest additions was ITC, where the fund purchased 1.91 crore shares, taking total holdings to nearly 24 crore shares. The scheme also added 47.60 lakh shares of HDFC Bank and 34.62 lakh shares of Tata Consultancy Services (TCS).

Other additions included Infosys, ICICI Bank, Kotak Mahindra Bank, Cipla, Dr. Reddy’s Laboratories, Bajaj Holdings & Investment, Mahindra & Mahindra, HCL Technologies, EID Parry India and Zydus Lifesciences.

Indraprastha Gas Limited (IGL) emerged as the largest fresh addition, with the fund purchasing 3.73 crore shares during the month. HCL Technologies also saw significant buying of more than 1.04 crore shares.

On the other hand, the fund reduced exposure to Coal India and Power Grid Corporation of India (PGCIL), while making a complete exit from Balkrishna Industries by selling 22.74 lakh shares.

The scheme’s portfolio count reduced slightly to 32 stocks in April from 33 in March.

Global exposure

International equity exposure also edged higher to 11.8% from 10.59% in March, indicating strong performance from global holdings such as Alphabet and Microsoft despite restrictions on fresh overseas investments.

The fund additionally increased exposure to REITs, with allocation rising to 4.1% from 3.7%, helping create stable cash-flow buffers amid volatile equity markets.

Another notable signal came from sponsor and management investments in the scheme, which rose by over Rs 40 crore during April to Rs 595.42 crore.

The increase in internal investments, alongside higher equity deployment, reflects growing confidence within the fund house about long-term market opportunities.

Market experts say investor preference for flexi cap funds remains strong because of their ability to dynamically allocate capital across large-cap, mid-cap and small-cap stocks depending on valuations and market conditions, making them attractive during uncertain market phases.