Parag Parikh Flexi Cap Fund Raises Stakes in Banking and ITC, Cuts Holdings in Maruti Suzuki

Parag Parikh Flexi Cap Fund, India's leading flexicap mutual fund by assets, reshuffled its portfolio in September 2025, increasing stakes in top banking names like ICICI, HDFC, Axis, Kotak, and ITC, while reducing its exposure to Maruti Suzuki and completely exiting IPCA Laboratories.

Major Increases in Banking and ITC Holdings

In September 2025, the Parag Parikh Flexi Cap Fund significantly increased its investments in the banking sector stocks, including Axis Bank, HDFC Bank, ICICI Bank, and Kotak Mahindra Bank. Alongside banks, it raised its share in ITC, a leading conglomerate. These moves indicate a strategic position towards sectors with stable earnings and long-term growth potential.

The fund also raised stakes in 7 other companies: Cipla, Dr Reddy’s Laboratories, EID Parry India, Indian Energy Exchange, Power Grid Corporation of India, Zydus Lifesciences, and Zydus Wellness. Notably, Zydus Wellness saw the biggest addition with 1.76 crore shares added, raising the fund’s holding to 2.20 crore shares.

Trimmed and Exited Positions

The fund offloaded nearly 50,000 shares of Maruti Suzuki, reducing its holding from 27.46 lakh to 26.96 lakh shares as of September end. Additionally, Parag Parikh Flexi Cap Fund made a full exit from IPCA Laboratories, selling 2.18 lakh shares from its portfolio. The total number of stocks in the fund’s portfolio dropped from 28 in August to 27 in September.

Read More: Most Indian Equity Funds Underperform S&P Indices Over 10 Years!

Fund Growth and AUM Update

The Assets Under Management (AUM) of the fund rose to ₹1,19,000 crore by September 30, 2025, up from ₹1,15,000 crore in August 2025. This growth reflects both market performance and increased investor participation. The flexicap strategy allows the fund to invest flexibly across market capitalisations, domestically and internationally.

Key Operational Changes

Effective October 31, 2025, the fund will introduce the IDCW (Income Distribution cum Capital Withdrawal) option. While earlier only growth options were available, investors can now choose between payout and reinvestment modes under IDCW as well. Though NAVs will differ, the portfolio remains unchanged across options.

Conclusion

Parag Parikh Flexi Cap Fund's portfolio update for September 2025 shows a focused increase in banking and FMCG sectors, with a retreat from automobile and pharma players like Maruti Suzuki and IPCA. The AUM growth and new IDCW option further strengthen its appeal among investors.

Disclaimer: This blog has been written exclusively for educational purposes. The securities or companies mentioned are only examples and not recommendations. This does not constitute a personal recommendation or investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

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