India’s two largest mutual funds Parag Parikh vs HDFC Flexi Cap Fund in terms of lump sum and SIP returns
The flexi-cap mutual fund category in India is dominated by two large funds, attracting significant interest from retail investors seeking long-term growth. Both Parag Parikh Flexi Cap Fund and HDFC Flexi Cap Fund have crossed the milestone of ₹1 lakh crore in assets under management (AUM).
Data reveals how these two major investment vehicles perform when compared through lump sum and systematic investment plan (SIP) strategies. While one is comfortably ahead in overall asset accumulation, the other has delivered superior wealth growth over multiple time horizons.
Net Asset Value (NAV)
Despite operating in the same category, the structural metrics of the two funds show significant differences. Parag Parikh Flexi Cap Fund remains the largest scheme in this space. Its total AUM is ₹1,41,446 crore, supported by a net asset value (NAV) of ₹90.14.
In contrast, HDFC Flexi Cap Fund is the third-largest mutual fund scheme in the country. Its asset size is ₹1,01,821 crore. However, its NAV is significantly higher at ₹2,199.96.
Short-Term Growth
Recent market volatility has created a clear difference in the short-term performance of the two funds. Investors who invested ₹100,000 in Parag Parikh Flexi Cap Fund a year ago may have seen a slight decrease in their capital. The investment value declined to ₹99,210, indicating a difficult year for the fund’s specific portfolio allocation.
In contrast, HDFC Flexi Cap Fund performed with positive gains over the same period. A similar lump sum investment of Rs 100,000 in an HDFC fund grew to Rs 102,836, generating a return of 3.24% in one year.
Medium-Term Returns
Extending the investment period to three years shows a significant difference in profit margins. Over three years, the Parag Parikh Flexi Cap Fund achieved an annualized return of 15.31%. This growth rate transformed the initial lump sum of Rs 100,000 into Rs 146,389.
The HDFC Flexi Cap Fund surpassed this figure by generating an annualized return of 18.22% in the same period. As a result, an investment of Rs 100,000 in the HDFC scheme grew to Rs 156,598, generating significant returns for its investors.
Long-Term Performance
The difference in performance becomes even more pronounced when analyzing the five-year lump sum returns. Parag Parikh Flexi Cap Fund recorded a compound annual growth rate (CAGR) of 15.25% over five years. This consistent performance has grown a lump sum of Rs 100,000 to a total of Rs 189,898.
Meanwhile, HDFC Flexi Cap Fund maintained its leading pace over the five-year track. The fund has grown the same lump sum of Rs 100,000 to Rs 216,630, narrowing the wealth gap for long-term lump sum investors.
Monthly SIP Outcome
When looking at regular monthly contributions, the gap in returns between the two schemes narrows significantly. Imagine an investor starts a monthly SIP of Rs 3,000 for five years, resulting in a total principal investment of Rs 180,000. In the Parag Parikh Flexi Cap Fund, this five-year SIP would accumulate to a total of Rs 250,072 after tax, representing a net profit of approximately Rs 70,000.
In a similar scenario, the same Rs 3,000 monthly SIP in the HDFC Flexi Cap Fund would mature at a post-tax value of Rs 266,669. The final calculations show that HDFC leads in both investment modes, but the difference is much smaller for SIP users compared to those making lump-sum deposits.
Disclaimer: All the information provided in this article is for educational purposes only. We are NOT a SEBI registered investment advisor. DateUpdateGo always advises seeking guidance from a certified financial advisor before making any investment-related decisions.
