Parag Parikh Flexi Cap Fund follows a structurally global portfolio approach, with international equities forming a meaningful portion of its allocation over time. This exposure is not driven by short-term market views but by a long-term investment philosophy focused on capital preservation, valuation discipline, and risk-adjusted compounding. The fund avoids a country-first mindset and instead allocates capital based on where durable businesses can be bought at reasonable valuations. This makes it a useful case study in why global diversification is embedded into professional portfolio design. Watch the video below to understand how this strategy works in practice.
As assets under management grow, deploying capital efficiently becomes more difficult in a relatively narrow domestic market. The pool of large, liquid, high-quality Indian companies is limited, creating risks such as forced concentration, valuation compromise, or diluted conviction. Rather than altering its style or holding excess cash, the fund expanded its investable universe globally. This allowed it to maintain selectivity and discipline while managing scale-related constraints more effectively.
From a risk perspective, the fund defines risk as concentration rather than volatility. Global exposure reduces reliance on a single economic system, policy regime, or liquidity cycle. Over full market cycles, this structure has supported lower drawdowns and more stable long-term outcomes, reinforcing the role of global diversification in resilient portfolio construction.
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