This fund outperformed its benchmark 91% of the time and the category 78% of the time. Keep reading to learn more about this fund.

The Nifty 500 Index includes a good mix of large, medium and small companies, with the top 100 stocks by market capitalization classified as large caps, the next 150 as mid caps and the remaining 250 as small caps. The Nifty 500 has had a spectacular run since the covid-induced restrictions were lifted. Additionally, the index outperformed the Nifty 50 as it contains both mid and small cap stocks.

This index is tracked by a variety of mutual funds, including multi-cap funds, flexi-cap funds, targeted funds, etc. One of these funds, with a well-diversified investment strategy, is one of them. The Parag Parikh Flexi-Cap Fund (formerly known as the Parag Parikh Long-Term Equity Fund) invests in local and foreign markets. We have assessed the fund’s performance by comparing its performance in terms of risk and return to that of its category and the benchmark it monitors.

Note: The data used for the calculations are those of the direct plan.

In a three-year rolling return analysis, the fund outperformed its benchmark and category, with no negative returns in a single three-year period out of approximately 1,375 observations. The fund’s three-year moving median returns were 14.6%, while those of its category and benchmark were 12.9% and 12.7%, respectively. The minimum return provided by the fund in all three-year observations is 0.3%.

“A penny saved is a penny earned,” is one of Benjamin Franklin’s greatest sayings. This is also true while investing in mutual funds. The better your risk management, the more likely you are to create money over the specified investment horizon. Therefore, risk is a crucial piece of the puzzle when investing in mutual funds. So, let’s test this flexi-cap fund in terms of risk. As a risk indicator, we used the maximum drawdown.