HDFC Flexi Cap vs Parag Parikh Flexi Cap: Which Fund Delivered 20.4% Returns in 3 Years?

Selecting a mutual fund is a crucial decision for every investor; therefore, you need to weigh up the decision carefully. With various investment options available, HDFC Flexi Cap Fund and Parag Parikh Flexi Cap Fund are two funds that stand out due to their track record of performance and varying investment strategies. In this article, we will compare these funds in terms of important characteristics to help investors determine which fund aligns better with their investment goals.

Fund Overview

| Parameter | HDFC Flexi Cap Fund | Parag Parikh Flexi Cap Fund | |--------------------------|---------------------------|-----------------------------| | Fund House | HDFC Mutual Fund | PPFAS Mutual Fund | | Fund Category | Flexi Cap | Flexi Cap | | Fund Manager | Prashant Jain | Rajeev Thakkar | | Fund Inception Date | 28th July 1995 | 30th May 2013 | | AUM (As of Nov 2025) | ₹40,580 crore | ₹51,295 crore | | Benchmark | Nifty 500 TRI | Nifty 500 TRI |

Performance Snapshot (As of November 2025)

| Time Period | HDFC Flexi Cap Fund | Parag Parikh Flexi Cap Fund | |--------------------------|---------------------------|-----------------------------| | 1 Year Return | 16.9% | 18.5% | | 3 Year CAGR | 16.3% | 20.4% | | 5 Year CAGR | 17.5% | 19.5% |

Both funds have outperformed the benchmark, with the Parag Parikh Flexi Cap Fund showcasing consistently higher returns, partially due to its international exposure.

Portfolio Construction & Holdings

HDFC Flexi Cap Fund - Top Holdings: ICICI Bank, HDFC Bank, Larsen & Toubro, Infosys. - Sector Allocations: Strong allocations to BFSI, IT, Industrials, and Consumer Staples. - Asset Allocations: Significant exposure to Indian equities with minimal cash allocations.

Parag Parikh Flexi Cap Fund - Top Holdings: HDFC Bank, Bajaj Holdings, ITC, Alphabet (Google Company), and Microsoft. - Sector Allocations: Balanced approach between Indian financials, consumer staples, and international technology equities. - Asset Allocations: Approximately 30% allocated to U.S. and other global equities, which diversifies currency and sector risks.

Risk and Volatility

The HDFC Flexi Cap Fund operates with a higher volatility profile because of the exclusive exposure to the Indian market and active changing allocations within market cap. The Parag Parikh Flexi Cap Fund has a relatively lower volatility profile due to the global equities mitigating risk to sectors and divesting in value-investing.

Expense Ratio and Exit Load

| Parameter | HDFC Flexi Cap Fund | Parag Parikh Flexi Cap Fund | |--------------------------|---------------------------|-----------------------------| | Expense Ratio | 1.74% (Direct Plan) | 1.67% (Direct Plan) | | Exit Load | 1% if redeemed within 1 year | 1% if redeemed within 1 year |

Investor Suitability

- If you are looking for a purely India-focused flexi cap fund with a highly active sector rotation and possibly superior returns aligned to the domestic economic cycle, the HDFC Flexi Cap Fund would be right for you. - If you are looking for a value-oriented portfolio that incorporates global equity exposure, the Parag Parikh Flexi Cap Fund will appeal to you, especially if you are an investor who wants international exposure for possible diversification, lowering volatility from domestic-only stocks.

Summary Table

| Aspect | HDFC Flexi Cap Fund | Parag Parikh Flexi Cap Fund | |--------------------------|---------------------------|-----------------------------| | Fund Style | Blend of Growth and Value (India only) | Value-oriented with ~30% International Equity | | Risk Profile | Moderate to High | Moderate | | Volatility | Higher | Lower | | 3-Year Returns | 16.3% | 20.4% | | Global Exposure | No | Yes | | Expense Ratio | 1.74% | 1.67% | | Suitable For | Investors confident about Indian markets | Investors seeking global diversification |

Investor Implications

- Both funds have shown strength and resilience through various market cycles and have performed well. - You should consider your appetite for risk, if you prefer global exposure, and your overall financial goals before making any investment decision. - Flexi cap funds are very versatile, but some degree of monitoring is expected based on the dynamic nature of the market, which includes volatility. - Diversification, whether via manager style or geography, is still important in mitigating your portfolio-wide risk.

Conclusion

If you are an investor ultimately looking for diversified exposure in the Indian equity markets, these two funds appear to be solid options. Your choice will be made based on your preferences for international diversification versus pure Indian markets. Consistently achieving your financial goals will provide the best result.