Parag Parikh Flexi Cap or HDFC Flexi Cap - Which Fund Suits Your Portfolio Better?
DSIJ Intelligence-4 / 22 Jul 2025/ Categories: Mindshare, Mutual Fund, Trending
Flexi Cap Face-Off: Choosing Between Global Diversification and Domestic Strength
Parag Parikh Flexi Cap Fund and HDFC Flexi Cap Fund are among the most popular and top-performing Flexi Cap mutual funds in India. This detailed comparison covers their historical performance, investment strategy, risk profile, portfolio structure, costs, and suitability for investors.
Basic Information:
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Source: ET Money
Performance Review:
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Source: ET Money
Parag Parikh outperforms HDFC in longer-term (10-year and since inception) returns, reflecting its value orientation and global diversification.
HDFC Flexi Cap has a slight advantage in recent 3-year and 5-year periods, indicating strong recent domestic growth momentum.
SIP vs Lumpsum Calculation:
Parag Parikh Flexi Cap:
HDFC Flexi Cap:
Which Worked Better in the Last 10 Years?
When investing with a 10-year horizon, the choice between SIP (Systematic Investment Plan) and lump sum can significantly impact returns. In the case of Parag Parikh Flexi Cap, a monthly SIP of ₹10,000 delivered an absolute return of 198%, whereas a lump sum investment of ₹10 lakh grew by a massive 426% over the same period. Similarly, HDFC Flexi Cap saw a 185% absolute return through SIPs and 339% via lump sum. Clearly, during strong bull market cycles, lump sum investments have outperformed SIPs — emphasizing the importance of market timing and fund performance.
Risk and Volatility Metric
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Source: ET Money
HDFC Flexi Cap displays higher volatility, as shown by its greater standard deviation and beta, making it more sensitive to market fluctuations.
Parag Parikh exhibits more stability and lower risk, aided by international diversification.
Investment Strategy & Philosophy
Parag Parikh Flexi Cap Fund
Approach: Value-oriented, bottom-up stock selection, long-term focus, with up to 35% permitted in international equities (US tech, multinationals, etc.).
Diversification: Global exposure helps cushion domestic volatility.
HDFC Flexi Cap Fund
Approach: Mostly growth-oriented within Indian equities, dynamic allocation across large, mid, and small caps, minimal or no international allocation.
Strategy: Focus on established market leaders, making it suitable for investors seeking consistent domestic growth with moderately higher volatility.
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Under the equity section of Parag Parikh Flexi Cap, the foreign equity holding is 11.14%.
Parag Parikh Flexi Cap
HDFC Flexi Cap:
Parag Parikh invests more flexibly in mid/small caps and foreign companies, while HDFC Flexi Cap is more large cap-heavy and India-focused, contributing to its steadier-but at times less exceptional-long-term return profile.
Suitability
Parag Parikh Flexi Cap is suitable for investors seeking long-term capital appreciation, lower volatility, and global diversification in their equity portfolio.
HDFC Flexi Cap is ideal for those desiring strong domestic equity exposure with a more conservative tilt toward Large-Cap Indian companies.
Conclusion
Both funds are well-managed, have strong long-term track records, and cater to different investor profiles:
Choose Parag Parikh for a blend of Indian and global equities, and a more stable long-term compounding approach.
Opt for HDFC Flexi Cap for steady, large-cap-driven domestic exposure and higher recent growth with moderate risk.