Market Mastery
Webinar by Vishal Malkan
Find the weak links
in your portfolio by Vishal Malkan
Parag Parikh Flexi Cap Fund has sharply reduced its cash holdings over the past year, bringing its allocation down from 25.31 percent in October 2025 to 8.78 percent in October 2026, according to the fund's latest factsheet.
That's a decline of 16.53 percentage points, or around 65 percent relative to its allocation a year ago.
Also read: Parag Parikh Flexi Cap cuts overseas exposure after AI stock rout: Meta out, Netflix in, Microsoft trimmed
The fund's reported cash holdings include cash, debt, money-market instruments and arbitrage positions. These holdings can be deployed into long-term investments when suitable opportunities arise.
The reduction comes even as the fund's recent returns remain under pressure, with its regular plan delivering a negative 6.06 percent return over the past year. Parag Parikh Flexi Cap Fund, India’s largest actively managed equity mutual fund scheme, had assets under management (AUM) of Rs 1,46,784.53 crore as of October 31, 2026, according to its latest factsheet.
How have cash holdings changed?
The fund was maintaining a substantial cash buffer even in March 2025, when the allocation stood at 24.53 percent. It increased marginally to 25.31 percent by October 2025.
However, the allocation has come down significantly since then.
Also read: Markets fell, but some mutual funds gained up to 17.82%. Here are the top performers
By January 2026, cash holdings had declined to 21.34 percent, falling further to 18.94 percent in March. The reduction continued in subsequent months, with the allocation reaching 11.58 percent in August, 9.77 percent in September and 8.78 percent in October.
Where is PPFAS putting its money?
The decline in cash holdings has coincided with a sizeable increase in Indian equity exposure.
The fund's Indian core equity allocation rose from 62.55 percent in October 2025 to 75.25 percent in October 2026, an increase of 12.70 percentage points.
Over recent months, PPFAS has been adding to companies such as DLF, Mahindra & Mahindra, Maruti Suzuki, Indus Towers and select gas businesses.
The fund has also reshuffled its overseas portfolio, exiting Meta Platforms, reducing Microsoft's weight and adding Netflix during October.
In an earlier interaction with Moneycontrol, Raj Mehta, Executive Vice President and Fund Manager – Equity at PPFAS Mutual Fund, explained that the fund's decision to deploy cash depends on available investment opportunities rather than overall market levels.
"Cash and cash equivalents in the portfolio is a function of the opportunities available in the market and not the market levels per se," Mehta had said.
He had also pointed to time corrections in the broader market and price corrections in select companies as opportunities to build new positions and increase existing holdings.
How has Parag Parikh Flexi Cap performed?
Despite the fund's increasing equity allocation, its recent returns have remained weak.
According to ACE MF data as of November 9, 2026, the regular plan delivered a marginal positive return of 0.40 percent over the past month. However, returns over three and six months stood at negative 3.21 percent and negative 2.55 percent, respectively.
Over one year, the fund recorded a negative 6.06 percent return.
Its longer-term performance, however, remains positive, with annualised returns of 11.67 percent over three years, 10.06 percent over five years and 16.86 percent since inception.
The latest figures show how substantially PPFAS has reduced its cash holdings over the past year while increasing its exposure to Indian equities. However, the portfolio shift does not guarantee an improvement in returns, which will continue to depend on how its underlying investments perform.
Disclaimer: The views and investment tips expressed by experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
