Investing in the Best PPFAS Equity Mutual Funds to 2025 - Full Guide
The identification of the most suitable mutual funds to invest your money is among the most important concerns to Indian investors. The Indian investment world has developed a strong reputation of the Parag Parikh Flexi Cap Fund and other PPFAS (Parag Parikh Financial Advisory Services) equity mutual funds due to their distinct strategy and high returns. In case you want the best equity funds to invest in 2025, knowledge of PPFAS schemes can assist you to make the necessary decision on wealth creation.
In this paper, the author discusses the best-performing PPFAS equity mutual funds, the style its funds operate using, the strengths and weaknesses, highlights, scholarly opinions, and the comparison of these funds with the other similar funds in the market as an investment tool to long-term investors.
What are PPFAS Equity Mutual funds?
PPFAS equity mutual funds are their diversified funds that are managed by Parag Parikh mutual fund, which is an investment that mainly deals with equity and equity-based cryptocurrency. These funds have acquired popularity because of the disciplined value investing strategy and open procedures.
The investment strategy of PPFAS equity funds is mostly long-term oriented and targeted at high quality of Indian and international stocks. The advantage is that investors have access to experienced fund management team whose focus is on risk management, consistent compounding as well as low cost.
Why Indian Investors are fond of PPFAS Equity Funds?
- Inception returns since inception have been above average.
- Experienced fund managers who have been proven in the market.
- Diversification in Indian and foreign securities.
- Rigorous emphasis on the fundamentals of companies and value investing.
- Open communication and frequent updates.
It is important to note that PPFAS equity funds are appropriate to the people who want to diversify their portfolio, grow capital in a long-term perspective and have a comparatively lower risk than the sectoral or thematic funds. They are also easy to adapt in the dynamic equity market situation of the year 2025 due to the flexibility of their investment style.
What are the most popular PPFAS Equity Mutual Funds?
The following are the best PPFAS mutual fund schemes in equity 2025:
- Parag Parikh Flexi Cap Fund
- Parag Parikh Tax Saver Fund
- Parag Parikh Conservative Hybrid Fund (Although it is not an equity fund, it provides equity exposure at a lower risk)
We shall do an in-depth assessment of these funds and how they can be distinguished by the competitors.
Did You Know?
Until 2022, PPFAS Flexi Cap Fund was the largest flexi-cap scheme in India to have a large exposure to international equity (18-20%), so providing exposure to major global corporations such as Alphabet, Meta, and Microsoft.
The Difference between Parag Parikh Flexi Cap Fund and others
The flagship product of PPFAS is Parag Parikh Flexi Cap Fund and it is constantly found in the best mutual funds lists every year.
Key Features or Highlights
- True flexi-cap approach - invests both in large, mid and small-caps freely.
- Allotment abroad - maximum of 35, within the restrictions of RBI.
- Controlled by Rajeev Thakkar, one of the best fund managers in India.
- The basic portfolio consists of Indian blue-chips (HDFC, ICICI, Bajaj Holdings) and international giants (Alphabet, Meta).
- Minimal portfolio turnover, with a focus on the buy and hold strategy.
Performance Snapshot (2013-2025)
| Year | 3-Year CAGR | 5-Year CAGR | Overseas Allocation | Expense Ratio |
|---|---|---|---|---|
| 2018 | 15.5% | 14.2% | 20% | 1.06% (Reg) |
| 2021 | 20.7% | 18.4% | 17% | 0.91% (Reg) |
| 2023 | 19.1% | 15.8% | 18% | 0.84% (Reg) |
| 2025* | 17.5% | 14.7% | 19% | 0.83% (Reg) |
It is estimated in 2025 according to the existing tendencies.
Advantages and Disadvantages of Parag Parikh Flexi Cap Fund
Pros
- Indeed diversified portfolio in terms of business and geography.
- Stable adjustment of risk returns.
- Experienced investment management team.
- Minimal downside because of selective stocks that are conservative.
Cons
- RBI ceiling restricts overseas allocation (new flows suspended under this rule).
- Not the best in case one wants to have Indian equity alone.
- May performs poorly with bull markets dominated by small-cap Indians.
Expert Insight
According to industry analysts, Parag Parikh Flexi Cap Fund has a very low downsize capture ratio amongst flexi-cap funds and it would be very appropriate to SIP investors over the next ten years.
What About Parag Parikh Tax Saver Fund - Is it good in 2025
Parag Parikh Tax Saver Fund (ELSS) is also a good choice by the PPFAS portfolio in case of investors who want a tax benefit under Section 80C.
Key Features or Highlights
- 3 year lock-in period, tax benefits of 80C (maximum to 0.5 lakh/year)
- Majorly invests in big and select stocks in India of quality and in high capital.
- Shares the same value investing style as Flexi Cap except that there are no global stocks.
- Ratio of expenses is below average in ELSS category (0.85% of direct plan, 2025)
Performance Snapshot (2019-2025)
| Year | 3-Year CAGR | 5-Year CAGR | Expenses Ratio | Lock-in |
|---|---|---|---|---|
| 2021 | 16.3% | – | 0.88% (Dir) | 3 years |
| 2023 | 17.4% | 15.5% | 0.85% (Dir) | 3 years |
| 2025 | 15.6% | 14.1% | 0.85% (Dir) | 3 years |
Advantages and Disadvantages of Parag Parikh Tax Saver Fund
Pros
- Best with salaried workers who get growth and tax savings.
- Long-term compounding based portfolio.
- Less volatile as compared to other ELSS funds.
Cons
- No global diversification.
- Lock-in limits the flexibility of the early redemption.
- The concentration was on the Indian large and mid-cap stocks.
People Also Ask
Q: Is it possible to invest in Flexi Cap, as well as Tax Saver funds?
A: Yes, you are able to invest in both according to your financial objectives. Flexi Cap is to create wealth; Tax Saver assists in creating wealth, tax planning and wealth growth.
Is Parag Parikh Conservative Hybrid Fund Good as an Equity Exposure?
The Parag Parikh Conservative Hybrid Fund is technically a hybrid scheme, but offers partial exposure to equity to moderately conservative investors.
Key Features or Highlights
- At least 25%-50% in equity, the rest in debt or arbitrage.
- The objective is to achieve low, consistent, returns with a bit of equity upside.
- Equity to be selected and managed like Flexi Cap approach.
- Less risky than pure equity funds because the debt is of high quality.
Performance Snapshot (2021-2025)
| Year | CAGR (3 years) | Equity (Average) Allocation | Expense Ratio | Risk |
|---|---|---|---|---|
| 2023 | 8.9% | 28% | 0.70% (Dir) | Low |
| 2025 | 9.2% | 29% | 0.72% (Dir) | Low |
Advantages and Disadvantages of Parag Parikh Conservative Hybrid Fund
Pros
- Best baby boomers retirement income.
- Higher returns than conventional bank fixed deposits.
- Appropriate to first time mutual funds investors.
Cons
- Low potential upside as compared to full equity mutual funds.
- Low tax efficiency in the short-running periods as compared to equity schemes.
Did You Know?
This hybrid PPFAS fund performed better than most of the balanced and conservative hybrid funds that had low drawdowns during the 2022-2023 market correction despite the PPFAS fund being a hybrid.
Comparison of PPFAS Equity Mutual Funds and Nifty 50 and other similar mutual funds
Comparison of the long-term average returns and volatility:
| Fund Name | 5-year CAGR (2020-25) | Std Deviation | Foreign Stocks |
|---|---|---|---|
| Parag Parikh Flexi Cap Fund | 14.7% | 12.8% | Yes (up to 35) |
| Nifty 50 TRI Index | 12.2% | 14.9% | No |
| Kotak Flexicap Fund | 13.3% | 13.7% | No |
| Mirae Asset Tax Saver ELSS | 13.8% | 13.1% | No |
That demonstrates PPFAS Flexi Cap to be more consistent, less volatile and much-desired international diversification.
Expert View
According to the market strategists, by investing 15-20% of your total investment on PPFAS Flexi Cap, you have not only global diversification but you also have stability which most of the Indian-only mutual funds lack.
What Investors need to know before investing in PPFAS Equity Mutual Funds
- These are the best funds that fit investors that have a 5-7 year investment horizon.
- In the short run, the market corrections may affect returns but disciplined SIP works best.
- Regulatory limits apply to oversees investing which may temporarily limit new foreign stock purchases.
- All the funds are run on a value bias, rather than a momentum or a theme.
Do Not Miss
- The lowest expense ratio should always be the Direct plan one.
- Look at updated fund factsheets on a regular basis to keep up with the portfolio and performance.
People Also Ask
Q: Is the overseas investment limitation on returns?
A: PPFAS funds are currently investing new cash in the Indian equity but the basic portfolios already have a large global allocation through previous investments. So far it has not affected returns materially.
Online Investment in PPFAS funds, How to start with SIP or Lumpsum
One can easily invest in Parag Parikh Mutual Funds through:
- KYC-verified online application via the PPFAS online official website or major applications such as Groww and Zerodha.
- Select regular plan or direct plan according to your choosing.
- Most funds have minimum SIP of Rs 1,000 per month.
- Ensure that you pick the appropriate fund according to your risk profile and investment objectives. Track upkeep of portfolio on quarterly basis.
Did You Know?
The NFOs of most of its funds were only introduced within the past decade but have succeeded in securing over [?]50,000 crores in AUM by early 2025 because investors have high confidence in its fund philosophy.
TLDR
- Parag Parikh Flexi Cap Fund - Best multicap that yields stable returns over the long run and is spread across the globe, best bet in 5-10 years SIP.
- Parag Parikh Tax Saver Fund - disciplined value ELSS fund, ideal when one requires a consistent return on equity and is a tax saver.
- Conservative Hybrid Fund - The combination of stock and bond, which is an appropriate fund to investments with risk-aversion or retirement-oriented preferences.
All money under robust risk management and low-cost and transparent disclosures to the investors.
People Also Ask - FAQs
Q1: Do PPFAS equity mutual funds hold up to 2025 and after?
A1: PPFAS funds have been demonstrated to have a better risk adjusted returns and are resistant to market volatility, however they are open to market risks as other equity funds. It is suggested that a long-run strategy should be adopted.
Q2: Will I easily be able to stop and restart my SIP in Parag Parikh funds.
A2: Yes, the majority of platforms and AMC portals allow stopping or resuming SIPs with just a few clicks and no additional fees.
Q3: What is the exit load of these funds
Parag Parikh Flexi Cap Fund exit load will be 2 per cent when redeemed within a period of 1 year, and 1 per cent when redeemed between 1-2 years. Tax Saver Fund has 3 years lock in with no exit load.
Q4: Will there be a change in the international allocation rules in future?
A4: RBI has the option of re-pricing overseas exposure limits, which can allow PPFAS to increase global allocations further. The AMC should continue to announce new announcements to the investors.
Sources
- Parag Parikh Mutual Fund official web site.
- Morningstar Funds Data and Ratings.
- Value Research Online Evaluate Performance.
- SEBI Guidelines and Updates.
