Parag Parikh Long Term Equity Fund: Fund Review

Parag Parikh Long Term Equity Fund is diversified equity fund. It is a local fund with a global focus. This is one of only a handful of Indian mutual fund schemes to invest in a basket of Indian and foreign stocks. The fund gave 16.32% return since its inception in May 2013. The fund managers are Rajeev Thakkar, Raunak Onkar, and Raj Mehta. Rajeev Thakkar manages the domestic portion of the scheme, while Raunak Onkar manages the foreign investment component. Raj Mehta is responsible for the ‘fixed income’ investment component. This fund gives the fund managers flexibility to invest in the companies of their likings irrespective of the size of the company and can, therefore, generate much higher returns. Invest in this fund for an investment horizon of at least 5 years for the investments to give best results.


Parag Parikh Long Term Equity Fund is ranked 5th in its category by Upwardly. The fund has managed to beat its benchmark majority of the times since its inception. The funds trailing returns both 1 and 3-year are higher than its benchmark.

Parag Parikh Long Term Equity Fund has beaten its category average by 1 percentage points and its benchmark by 3 percentage points in the 5-year returns. The fund is in line with its peers in its performance in the 5-year returns.

A SIP investment of Rs 5,000 a month in Parag Parikh Long Term Equity Fundstarted 5 years ago is worth Rs 4.07 lakhs now. A profit of Rs 1.02 lakhs in just 5 years. Even if one chose to redeem their investment then they would be liable to pay tax only on the excess returns on Rs 1 Lakh. Since gains up to Rs 1 lakh are exempt from taxes.

Fund Information

Parag Parikh Long Term Equity Fund invests in Indian equities, foreign equities and related instruments and debt securities. Its investment universe is not restricted by any self-imposed limitations in terms of sector, market capitalization, geography, etc. However, an average of 65% of its corpus is invested in listed Indian equities. This is to benefit from the favorable Capital Gains tax treatment accorded to such schemes. Also, the fund buys securities at a discount to intrinsic value this will help to create value for investors. The investment philosophy is to invest in such value stocks.

The Fund Managers follow an active investment strategy primarily based on fundamental research. The fund follows a bottom-up stock selection approach. They attempt to profit from various cognitive and emotional biases displayed by companies and market participants. In other words, along with the dissection of financial statements, there will also be an overlay of the study of human emotions.

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