More India, less overseas: Tracking Parag Parikh Flexi Cap Fund's portfolio shift over the last 5 months

Parag Parikh Flexi Cap Fund sold out Meta Platforms and bought Netflix in October, marking the first change in the line-up of its US stocks in the five months to October 31, 2026.

The fund also cut its holdings in Microsoft and Alphabet in October, shrinking its overseas book from 11.90% of net assets in September to 10.07%.

Netflix has entered the portfolio of Parag Parikh Flexi Cap Fund at 3.06% of net assets, making it the second-largest overseas holding after Alphabet at 3.42%. Meta, which the fund had raised to 2.83% in September from 2.20% in June, is absent from the October portfolio.

Microsoft's weight fell to 1.42% from 2.48%, and Alphabet's to 3.42% from 4.29%. Amazon was left broadly unchanged at 2.17%.

The fund’s US holdings, as a share of net assets (%)

In rupee terms, the scheme's overseas portfolio fell to ₹14,785.78 crore from ₹17,270.28 crore a month earlier, which is a reduction of about ₹2,485 crore, or 14.4%, according to the fund's disclosure of total investment in foreign securities.

How the asset mix moved (% of net assets)

The fund's pullback from US stocks was mirrored at home. Equity and equity-related holdings in India, including the arbitrage book and REITs, rose to 82.49% of net assets from 79.77%, with the core India equity portfolio climbing to 75.25% in October from 72.06% in September, and just 70.7% in June 2026.

The fund's largest holding in October remained HDFC Bank at 7.49%, followed by Power Grid Corporation at 5.63%, ITC at 5.49% and ICICI Bank at 5.48%. The arbitrage book, which is used by the fund manager to park money in hedged positions, shrank for a fifth straight month to 1.34% from 2.14% in June, and the number of arbitrage positions fell to 18 from 25.

However, the scheme's India portfolio itself has changed little over the five months.

From June to October, the fund added just one name, DLF, and exited one, Great Eastern Shipping. It held 33 Indian stocks in October, the same as in June. Its REIT holdings, including Embassy Office Parks, Knowledge Realty Trust and Brookfield India, accounted for 5.90% of assets, down from 6.27% in September.

The reshuffle in the fund's stock holding also showed up in its trading activity. Portfolio turnover, excluding equity arbitrage, rose to 20.33% in October from 17.09% in September, which is the highest of the five months. Turnover including arbitrage was 44.15% in October, compared to 42.7% in September.

However, the fund's performance has been under pressure. As on October 30, the fund's one-year return was minus 6.06% in the regular plan and minus 5.48% in the direct plan, against minus 6.83% for the Nifty 500 TRI and minus 9.45% for the Nifty 50 TRI.

Over five years, the scheme has returned 10.06 and 10.91% a year in the two plans respectively, against 8.80% for the Nifty 500.

Since inception in May 2013, the regular plan has compounded at 16.86% a year and the direct plan at 17.68%.

Takeaways

There are three points worth noting for investors from the analysis of the fund's last months' portfolios.

First, the overseas portfolio is a deliberate part of this fund's design and it is now close to a tenth of assets. A single stock swap in October moved roughly 3% of the portfolio.

Second, the fund's domestic book has been remarkably stable, with a single addition and a single exit in five months. So the fund's October activity was concentrated in the foreign holdings and the arbitrage book.

Third, the fund's risk measures remain conservative with a standard deviation of 10.06% against 15.65% for the benchmark, and a beta of 0.595.