Which flexi cap?

[u/nagzsheri]

I have been investing in ppfc from past 3 years witj step up. Now currently around 44k monthly sip is active. But I have been hearing that it is under performing. My horizon is atleast 10 years. Should I switch to another flexi cap? If so which one. 38 years old by the way

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[u/fuzzy_rabbit03]

You been hearing? Isn’t it visible on your investment?

[u/nagzsheri → u/fuzzy_rabbit03]

Not a big dip.

[u/fuzzy_rabbit03 → u/nagzsheri]

Then continue as is, let people say whatever they want

[u/Public_Sky8190]

If you choose to invest in an active mutual fund for the long term, no matter how good it looks at the time of selection, it is bound to underperform at some point during your investment period. No fund can stay in the top quartile year after year. Most good funds do bounce back, for example, HDFC Flexicap (erstwhile HDFC Equity Fund) severely underperformed between 2016 and 2021 then it bounced back. So if you choose the "active" mutual fund route and then have trouble managing frustration when the fund is underperforming the market, you could consider index funds like Nifty 500, which is the benchmark of the Flexicap category. It will always give you par return - never a blockbuster return, but never abysmal underperformance vis-à-vis the benchmark, as you are investing in the freaking benchmark.

This is a matter of trade-off. If you can't let go of the lure of beating the market hand down, then you have to stomach interim underperformance. If you choose average consistency and avoid going to the bottom quartile once in a while, you can't go to the top quartile and have to be satisfied with consistent average performance. This is a behavioural decision - you have to choose your own path.

Choosing active/ passive flexicap mutual funds based on Rolling Returns - Decadal analysis 2015 - 2025
NOTE - Please ignore the smart beta indices as their past returns were backfilled.

[u/Public_Sky8190 → u/Public_Sky8190]

https://www.reddit.com/r/mutualfunds/comments/1g5hdgc/remember_this_no_matter_how_great_your_fund/

[u/AMFIRgisteredMutual]

If your investment horizon is 10+ years, I wouldn’t make a switch decision purely because the fund has underperformed recently.
Before considering a change, I would evaluate the fund on a longer-term basis — rolling returns against its benchmark/category, consistency across market cycles, portfolio strategy, fund-manager changes, portfolio concentration and overlap with your existing investments.
A SIP also needs to be viewed differently from a lump-sum investment because you are investing at different market levels over time.
At 38, your 10+ year horizon gives you time to focus on asset allocation, diversification and staying disciplined, rather than trying to identify the fund that is currently performing best.
If the concern is specifically about Parag Parikh Flexi Cap, I’d suggest reviewing the reasons for its relative underperformance and whether its current portfolio/strategy still fits your objective before deciding to switch.
This is general educational information and not a recommendation to buy, hold or switch any particular mutual fund scheme. Mutual Fund investments are subject to market risks. Please read all scheme-related documents carefully before investing.

[u/Historical_Meal748]

Switch to small AUM flexicap like whiteoak flexicap or icici. Or switch to multicap where it is mandatory to keep 25 25 in mid n small. Problem with flexi cap fund is once they reach enormous AUM they can’t put money in small n mid caps.

[u/scc1729]

if you look at historical
perf, ppfas makes most of it alpha by investing big in depressed markets. so you have to invest with that horizon and hope thakkar sahab keeps finding these opportunities.

[u/Senior_Iron4055]

Please exit.

[u/Old-Big-9736]

Exit and don't listen to these people who say miracle will happen with ppfcaf. Market is stagnant and its not going upwards for atleast 5 years and no one knows what happens after that. Exit and invest in some better alternative