When a mutual fund crosses the ₹1 lakh crore AUM mark, it garners headlines—Parag Parikh Flexi Cap Fund just achieved it. On May 7, 2025, PPFAS Mutual Fund’s Flexi Cap Fund became the first actively managed equity mutual fund in the country to reach ₹100,000 crore. This landmark achievement speaks volumes about discipline alongside trust by investors and the performance, strategy, and foresight of the management.
This milestone is more qualitative than quantitative. It marks a growth in the perception of Indian investors towards actively managed mutual funds and underlines the power of flexi-cap funds in long-term wealth creation.
What is a Flexi Cap Fund and why does it matter
Flexi-cap funds are equity mutual funds that can invest in stocks of large, mid, and small caps. This allows the fund managers to capture opportunities across all market caps. Investors appreciate these funds because of their adaptability for solid long-term returns.
The Parag Parikh Flexi Cap Fund (formerly Long-Term Equity Fund) has a well-defined and value-based investing approach. It mixes Indian equities with international ones, diversifies across sectors, and focuses on long-term fundamentals. These characteristics have helped it gain a large, loyal investor base.
The Textbook Win: ₹1 Lakh Crore AUM
As of March 31, 2025, the fund managed roughly ₹93,441 crore. Before this, net outflows had pushed it past ₹100,000 crore, becoming the first actively managed equity mutual fund in India to surpass this mark.
They still have a long way to catch up to mega schemes like HDFC Flexi Cap (₹73,180 crore), which visibly lag.
Neil Parikh, CEO of PPFAS, described this moment as special, thanking his team, investors, and distributors for helping the firm reach this level.
Performance that Drives Investor Trust
The fund has delivered results in the market, which has increased its AUM as a side effect, crossing ₹1 lakh crores. Not only did they achieve this from having over 19% annualized returns since inception, but also, direct and regular plan investors increased by a notable margin.
A clear example demonstrates the economic value of the funds: assume there is a SIP plan of 10,000 rupees a month starting in 2013, by now it would have appreciated to over 51 lakhs for the direct plan, evidencing consistent wealth.
This is why more than ₹1 lakh crore AUM has already been invested into the fund through SIPs and lump sums.
What makes Parag Parikh Flexi Cap Unique?
Flexible Strategy – It can switch between market cap segments and entire countries.
Global Connect – It allocates part of the fund to global giants such as Alphabet and Microsoft
Strong Governance – The fund exercises stringent risk management along with other best practices.
Experienced Team – The fund is managed by Rajeev Thakkar, Raj Mehta, Raunak Onkar, and a host of other seasoned professionals, ensuring operational consistency and skill.
These elements boosted returns and reliability for investors.
What did this mean for Investors and the Indian Mutual Fund industry?
Shift to Dynamic Actively Managed Funds
This affirmation goes against the only narrative of passive funds growing massively.
Investor Move to Flexi Caps
Flexi cap funds now hold an edge over large and mid-cap traditional schemes, due to their versatility.
Retail Participation Increases
The SIP inflows into the fund indicate rising retail confidence in disciplined, long-term investment strategies.
Peer Pressure Boosts Ecosystem
Milestones such as these motivate other fund houses to enhance their offerings. Therefore, the industry standard has increased.
Key Fund Highlights (As of March 31, 2025):
| Metric | Value |
|---|---|
| AUM | ₹93,440.89 Cr (now ₹1 lakh+ Cr) |
| Fund Type | Flexi Cap (Invests across large, mid, and small caps) |
| Returns Since Inception | Direct Plan: 19.89% CAGR Regular Plan: 19.04% CAGR |
| SIP Returns | ₹10,000 monthly SIP since inception: • Direct: ₹51.03 lakh • Regular: ₹48.04 lakh |
| FY25 Estimated PAT | ₹200 Cr |
| Shares Outstanding | 76 lakh shares |
| EPS | ₹265 |
| Implied P/E | ~30x |
Valuation Metrics: PPFAS vs. Listed AMC Peers
| AMC | P/E | P/B | P/S |
|---|---|---|---|
| PPFAS (Unlisted) | 30x | 22.74 | 32.79 |
| SBI Mutual Fund | 63.08x | 19.35 | 40.4 |
| Nippon Life India AMC | 30.8x | 9.4 | 18 |
| Aditya Birla Sun Life AMC | 20x | 5 | 11 |
| HDFC AMC | 37.1x | 11.2 | 26.1 |
Valuation Analysis
Price-to-Earnings (P/E) Ratio
At a P/E of ~30x, PPFAS trades at par with Nippon Life AMC and below HDFC AMC (37.1x) and SBI MF (63.08x). Given its consistent performance and trusted brand equity, PPFAS appears undervalued relative to premium players like SBI MF, especially considering it has delivered close to 20% CAGR since inception.
Price-to-Book (P/B) Ratio
Interestingly, PPFAS has the highest P/B ratio at 22.74, indicating investors’ strong confidence in its intrinsic value and brand. A higher P/B can reflect the company’s asset-light model, high return on equity, and market dominance. Only SBI MF (19.35) comes close, reinforcing the premium positioning of both these AMCs.
Price-to-Sales (P/S) Ratio
At 32.79x, PPFAS’s P/S multiple is second only to SBI MF (40.4x). This premium valuation is reflective of the fund’s lean cost structure, strong margins, and high scalability. Notably, Aditya Birla and Nippon trade at much lower P/S multiples, suggesting either a lower growth outlook or higher operational costs.
Expansion Beyond Mutual Funds
PPFAS is also extending its footprint via PPFAS Alternate Asset Managers IFSC at GIFT City, signalling a strategic move into the AIF and global asset management space — further broadening its value proposition for high-net-worth and global investors.
Challenges of Evolving ₹100k Crore
Flexibility is a challenge impacted by size. Greater AUM results in:
Investors are shifting their funds from small-cap equities to large-cap companies, as seen by the rise in investments in new market categories.
It gets more difficult to purchase and sell equities without changing their prices as the fund size increases. This is why portfolio liquidity is crucial.
Overspending or surpassing the limit of ₹100k crores is much harder than managing a balance of ₹10k crores in funds.
Is Parag Parikh Flexi Cap Fund Recommended to invest in?
No doubt, this fund is an excellent recommendation if you aim to:
• Achieve long-term capital appreciation
• Make prospective investments in a disciplined manner
• Global investment diversification
• Performance reliability over time backed by an experienced and tested team
Don’t forget that the fund:
• Comes with elevated equity risk
• No lock-in period, but early redemptions incur exit loads
• Previous returns shouldn’t be relied on.
Adjusting to the risk profile is highly advisable, along with consulting a financial advisor ahead of investing.
Wrapping Up
This marks the end of the history of mutual funds and the beginning of a new story. Having ₹1 lakh crores AUM is a story in itself, especially for Parag Parikh Flexi Cap Fund, and shows a rise in the mutual fund industry in India. It indicates there is still a lot of room for active investment that is disciplined.
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