The recent underperformance of the Parag Parikh Flexi Cap Fund is “not noteworthy” in terms of its duration or magnitude, said Rajeev Thakkar, CIO and Director, PPFAS Mutual Fund.
Thakkar said in a note to the unitholders, that there can be periods when stocks in the portfolio remain weak or decline, particularly as PPFAS MF often invests in stocks and sectors that are out of favour with the market. He also stated that the cash allocation in the flexicap fund has fallen to around 14-15% from a peak of about 25%, while its outlook on a basket of four private sector banks in the portfolio, including HDFC Bank, remains unchanged.
