Parag Parikh Flexi Cap: The one stock it exited last month

Summary: Parag Parikh Flexi Cap Fund rarely makes sudden moves, but July saw one full exit and a handful of quiet, telling bets. While the fund’s hallmark patience remains intact, its latest portfolio shows marginal buying in Banking, Pharma and select other companies, alongside a complete sell-off in a long-held stock.

Parag Parikh Flexi Cap Fund has built its reputation on patience. While many funds have a more rat-a-tat strategy, this one is more slow, deliberate and only moving when there’s a clear advantage. And this strategy has worked for them in the long run, with the fund increasing its investor’s wealth nearly sixfold in 10 years.

Despite their approach, the fund’s July portfolio reveals some interesting tweaks. Although small in most cases, they did make some meaningful additions.

Where the fund added

Most stake increases were modest, suggesting quiet conviction rather than aggressive buying, especially in the Banking and Pharmaceutical space. Notable changes include:

• EID Parry has a bump in allocation, possibly reflecting confidence in the sugar and ethanol play.
• Kotak Mahindra Bank, a relatively higher increase.
• Axis Bank
• ICICI Bank
• Power Grid Corporation of India
• Cipla
• ITC
• Zydus Lifesciences and Zydus Wellness saw marginal increases, which could be topping-up moves rather than new positions.

Where the fund trimmed

The biggest cut came in IPCA Laboratories, with a substantial reduction, while LIC Housing Finance saw a slight trim.

Motilal Oswal Financial Services was fully divested from the portfolio in July — a rare instance of a complete exit for the fund. As of December last year, the stock had a relatively sizable holding. But since then, the fund has been steadily reducing its position in a measured manner. July marked the final step in this process, with the residual stake being sold entirely.

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Also read: Why this flexi-cap fund's returns stand out