Parag Parikh Flexi Cap Fund Reduces Cash To Below 10%: Where The Money Is Moving And What The Portfolio Now Holds

The Parag Parikh Flexi Cap Fund reduced its cash and cash-equivalent allocation by 9.17 percentage points over six months, from 18.94% in March 2026 to 9.77% in September 2026.

The freed-up money has supported new positions and increased exposure to existing holdings as price corrections created opportunities in selected stocks and sectors.

Where PPFAS Is Deploying Its Cash

DLF was the largest addition to the fund’s core equity holdings in September compared with August, accounting for 1.81% of assets under management (AUM).

The portfolio also added:

• Petronet LNG at 0.14% of AUM

• Indraprastha Gas at 0.06% of AUM

• Mahanagar Gas at 0.04% of AUM

Other additions included Mahindra & Mahindra, Indus Towers and Bharti Airtel.

The fund allocated 6.27% of its net assets to three real estate investment trusts (REITs) as of September. Its sector-wise allocation showed 8.72% exposure to realty, excluding the REIT allocation.

Raj Mehta, Executive Vice President and Fund Manager of Parag Parikh Financial Advisory Services (PPFAS) Mutual Fund, also indicated that some of the new investments went into real estate, REITS, and selected companies in the oil and gas sector.

Why The Fund Is Reducing Cash

The fund manager said cash allocation depends on the investment opportunities available, rather than market levels alone. The market has experienced a time correction over the past couple of years, alongside price corrections in selected stocks and sectors.

Estimated monthly inflows into the Parag Parikh Flexi Cap Fund moderated from around ₹3,950 crore in March to approximately ₹900 crore in September. However, he said the slowdown had not changed the portfolio strategy because net inflows continued.

Mehta also noted that investor flows had increasingly favoured mid- and small-cap funds after their relatively stronger recent performance, with short-term returns influencing fund preferences.

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