About Parag Parikh Long Term Equity Fund
Parag Long Term Equity Fund is an open-ended equity scheme investing in stocks across market capitalizations.
The investment objective of the scheme is to provide long-term capital appreciation to the investors by investing primarily in a diversified portfolio of equity & equity-related securities across market capitalizations & sectors. The scheme will invest in domestic equities, foreign equities, equity-related securities & debt securities.
The Benchmark of the scheme is NIFTY 500 TRI.
|Minimum Application Amount||Rs.1,000 & in multiples of Rs.1 thereafter|
|Minimum Additional Investment||Rs.1,000 & in multiples of Rs.1 thereafter|
|Type||Minimum Amount||Minimum Installments|
|Monthly||Rs.1000 & in multiples of Rs.1 thereafter||6|
|Quarterly||Rs.3,000 & in multiples of Rs.1 thereafter||4|
Entry Load: Nil
If units are redeemed or switched out within 365 days - 2%
If units are redeemed or switched out after 365 days but before 730 days - 1%
If units are redeemed or switched out after 730 days - Nil
Parag Parikh Long Term Equity Fund is suitable for investors with a moderately high-risk appetite & looking to invest for a period of 5 years & above.
As the fund predominantly invests in equity securities, Parag Parikh Long Term Equity Fund has the taxability of an equity mutual fund scheme. Following taxation is applicable:
- If the units are sold after 1 year, then the gains on investments are treated as Long Term Capital Gains (LTCG). LTCG of up to Rs 1 lacs in a financial year is tax-free and above that, it is taxed at the rate of 10% without the benefit of indexation.
- If the units are sold within 1 year, then the gains are treated as Short Term Capital Gains (STCG) and are taxed at the rate of 15%.
Parag Parikh Long Term Equity Fund’s Asset Allocation
Under normal conditions, the pattern of asset allocation is as follows:
|Assets||Minimum indicative allocation (% of total assets)||Maximum indicative allocation (% of total assets)||Risk Profile|
|Equity & Equity related securities||65||100||Moderate to High|
|Debt & money market instruments||0||35||Low to Moderate|
|Foreign Equity & Equity related securities||0||35||Moderate to High|
|Units issued by REITs & InvITs||0||10||Moderate to High|
Who should invest in Parag Parikh Long Term Equity Fund ?
Multicap funds are those equity mutual funds that invest in equity & equity-related securities of companies across market capitalizations & different sectors. These funds offer the benefits of diversification through its multicap investments.
Investments in Parag Parikh Long Term Equity Fund can be made by investors who want to invest in a diversified portfolio of equities. The diversified equity portfolio helps generate good returns over long periods with relatively lower volatility. Moreover, the allocation in foreign equities adds to the diversified investment approach of the fund. It helps to generate potential superior returns on the investment, backed by good opportunities available in foreign markets.
Investors looking to invest in equity funds with a diversified portfolio could consider investments in this fund. The fund can be a good investment for an investor’s core equity portfolio.
The following people are eligible for investing in this scheme:
- Indian Resident Adults (single holder or on a joint basis)
- Hindu Undivided Family
- Partnership entities
- Limited Liability Partnership units
- Minor through parent or a legal guardian
- Sole Proprietor
- Corporates, PSUs & others.
- Banks & Financial Institutions
- Religious & Charitable Trusts
- Defense & paramilitary units
- Foreign Portfolio Investors
- Pension/Provident/Gratuity Funds
- Trustee, AMCs or Sponsors
- Other schemes of PPFAS or other mutual funds
- Alternative Investment Funds
How to invest in Parag Parikh Long Term Equity Fund ?
You can invest in Parag Parikh Long Term Equity Fund through any AMFI distributor, AMC, banks, or third party platforms. If you need any help with your investments, you can reach out to our ZFunds Experts on Whatsapp - 7217746224.
Frequently Asked Questions about Parag Parikh Flexi Cap Fund
Q. What is the minimum amount required to start investing in Parag Parikh Flexi Cap Fund ?
A. The minimum investment amount for most MF schemes typically depends on the type of investment; for instance, lump sum or SIP (systematic investment plan). However, the minimum amount for Parag Parikh Flexi Cap Fund for both the cases – lump sum and monthly SIP – is INR 1000, and any additional amount in multiples of 1 thereafter. Moreover, the minimum additional lump sum investment amount after the initial lump sum investment is also INR 1000 and in multiples of 1 thereafter.
Q. What is the entry and exit load for Parag Parikh Flexi Cap Fund ?
A. There is no entry load on investments in Parag Parikh Flexi Cap Fund. However, exit load applies in case an investor redeems or switches out investments within a particular time frame from the fund. In case you redeem or switch out within 365 days from the date of allocation, then an exit load of two percent is applicable. In addition, in case you redeem/switch out mutual fund units after 365 days but before 730 days, then an exit load of one percent is applicable. However, no exit load is levied in case of redemption or switching out later than this period.
Q. Who should invest in Parag Parikh Flexi Cap Fund ?
A. Parag Parikh Flexi Cap Fund is a great mutual fund scheme for investors who have moderately high risk appetite and can stay invested for a period of five or more years.
Q. What are the top sectors of investment for Parag Parikh Flexi Cap Fund ?
A. Parag Parikh Flexi Cap Fund has invested more than 70 percent of its funds in financial services, services, technology, consumer staples and automobile sectors. However, it is pertinent to note that these can change any time at the fund manager’s discretion.
Q. What are Parag Parikh Flexi Cap Fund’s top investments in terms of asset allocation ?
A. HDFC, Bajaj Holdings & Investment Ltd., ITC Ltd., ICICI Bank Ltd., and Alphabet Inc. are the top stocks held by Parag Parikh Flexi Cap Fund in terms of asset allocation. Besides these, the fund has also invested in Microsoft Corporation, Axis Bank Ltd., Amazon. com Inc, HCL Technologies Ltd., and Power Grid Corporation of India Ltd. As mentioned above, while these are the funds current holdings, these may change at any time without any prior notice.
Q. How has been the Parag Parikh Flexi Cap Fund performance over the past years ?
A. Parag Parikh Flexi Cap Fund has performed well in the past, and given three and five year returns of around 23 percent and 17 percent, respectively, as on 26th September 2022.
Q. Is there any lock-in period for Parag Parikh Flexi Cap Fund Regular Growth plan ?
A. No. There is no lock-in period for this scheme and you can choose to redeem or switch out at any time. However, please be mindful of the exit load and tax implications before deciding to redeem or switch out of your Parag Parikh Flexi Cap Fund Regular Growth plan mutual fund units.
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