PPFCF vs SBI Flexi Cap Fund

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The Parag Parikh Flexi Cap Fund (PPFCF) and the SBI Flexi Cap Fund represent two structurally different schemes within the same SEBI flexi cap mutual fund category. PPFCF, the flagship scheme of PPFAS Mutual Fund, is a focused value-investing scheme of approximately 25 to 37 stocks with the regulatory permission to allocate up to 35 per cent of net assets to overseas-listed equities. The SBI Flexi Cap Fund, managed by SBI Mutual Fund (India’s largest AMC by AUM), is a domestic-only diversified scheme with a broader portfolio of approximately 55 to 75 stocks across large, mid, and small market-capitalisation segments.

The two schemes operate within the flexi cap categorisation created by SEBI in November 2020 in response to the September 2020 multi-cap allocation rule (which mandated 25 per cent each across large, mid, and small caps). Multiple AMCs that operated diversified equity schemes lobbied SEBI for a category that retained the cross-cap freedom, leading to the flexi cap category, which retains only a minimum 65 per cent equity allocation requirement without any cap-segment minima.

PPFCF was launched on 24 May 2013 as the Parag Parikh Long Term Value Fund (PPLTVF) by founder Parag Parikh, renamed in February 2018 to Parag Parikh Long Term Equity Fund following the SEBI scheme rationalisation circular 2017, and renamed again on 13 January 2021 to the Parag Parikh Flexi Cap Fund. The full naming history is at the PPLTVF-PPLTEF-PPFCF rename history entry. The SBI Flexi Cap Fund traces its origin to the SBI Magnum Equity Fund launched in 1990s and was recategorised through multiple SEBI category changes before settling into the current flexi cap form in 2021.

This comparison covers the AUM scale comparison between a boutique AMC and India’s largest AMC, the focused-portfolio-plus-international-allocation versus diversified-domestic approaches, performance trajectory, philosophy, distribution, taxation, and recent developments.

Comparison overview

DimensionParag Parikh Flexi Cap FundSBI Flexi Cap Fund
AMCPPFAS Mutual FundSBI Mutual Fund
Inception of current avatar24 May 20131990s predecessor
SEBI categoryFlexi capFlexi cap
BenchmarkNifty 500 TRINifty 500 TRI
AUM (May 2026)Approximately Rs 1,60,952 croreApproximately Rs 25,000 to 30,000 crore
Overseas allocationUp to 35 per cent permittedNil (domestic only)
Portfolio size25 to 37 stocks55 to 75 stocks
Lead fund managerRajeev Thakkar (since 2013)Anup Upadhyay
Investment styleValue, behavioural, focusedDiversified growth
Expense ratio (direct plan)Approximately 0.63 per centApproximately 0.85 per cent
Minimum investmentRs 1,000Rs 500
AMC total AUMApproximately Rs 1.01 lakh crore (Mar 2025)Over Rs 12 lakh crore

Boutique versus large AMC scale comparison

PPFAS Mutual Fund is a deliberately compact AMC with seven active schemes as of May 2026: the Parag Parikh Flexi Cap Fund, Parag Parikh ELSS Tax Saver Fund, Parag Parikh Liquid Fund, Parag Parikh Conservative Hybrid Fund, Parag Parikh Arbitrage Fund, Parag Parikh Dynamic Asset Allocation Fund, and the Parag Parikh Large Cap Fund. Total AMC AUM was approximately Rs 1.01 lakh crore as of 31 March 2025, with the PPFCF accounting for the dominant share.

SBI Mutual Fund is India’s largest AMC by total AUM with over Rs 12 lakh crore across more than 80 active schemes spanning equity, debt, hybrid, ETFs, index funds, fund-of-funds, sectoral and thematic categories. The SBI Flexi Cap Fund is one of multiple equity schemes at SBI MF, sitting alongside the SBI Large Cap Fund, SBI Magnum Mid Cap Fund, SBI Small Cap Fund, SBI Focused Equity Fund, SBI Magnum Global Fund, and several thematic offerings.

The structural contrast affects the way each AMC manages its schemes. PPFAS practices not chasing AUM and has historically suspended fresh inflows into PPFCF during regulatory-cap constrained periods. SBI MF operates a category-completion-driven product strategy that ensures presence in every SEBI-defined category. PPFAS articulates an explicit investment philosophy at the AMC level. SBI MF operates with fund-manager-specific philosophies that vary across the scheme set.

Focused value plus international versus diversified domestic

PPFCF combines two features that distinguish it from the SBI Flexi Cap Fund: a focused portfolio of 25 to 37 stocks, and international diversification of up to 35 per cent of net assets. The international allocation has been doctrinally important to PPFCF since launch, with positions historically held in Alphabet at PPFCF, Microsoft at PPFCF, Amazon at PPFCF, Meta Platforms at PPFCF, and historically Berkshire Hathaway at PPFCF.

Following the SEBI MF overseas investment cap breach in February 2022, foreign exposure at PPFCF has compressed from approximately 28 per cent to 11 to 16 per cent. The fund continues to hold the foreign positions but has not added to them at scale since the cap freeze.

The SBI Flexi Cap Fund is a domestic-only diversified equity scheme with no overseas allocation. The portfolio holds 55 to 75 stocks distributed across large-cap financials (HDFC Bank, ICICI Bank, Kotak Mahindra Bank, State Bank of India), IT services (Infosys, TCS), consumer staples and industrials.

The portfolio turnover ratio at PPFCF is consistently below 25 per cent annually. The SBI Flexi Cap Fund operates at moderately higher turnover, typically in the 40 to 60 per cent range.

Investment philosophy

The PPFAS investment philosophy is explicitly value-oriented and draws from Benjamin Graham, Warren Buffett, Charlie Munger, and behavioural-finance thinkers. The doctrine includes:

The SBI Flexi Cap Fund operates under a diversified equity framework focused on identifying companies with sustainable competitive advantages and reasonable valuations. The approach is less doctrinal than PPFAS’s and more consistent with the broader SBI Mutual Fund equity team’s quality-growth orientation. The fund avoids extreme concentration and maintains broad sector diversification.

Fund manager track record

PPFCF has been managed since launch (24 May 2013) by Rajeev Thakkar and Raunak Onkar, with Rukun Tarachandani added to the equity team in March 2021. The 13-year continuity is among the longest in the Indian flexi cap category.

The SBI Flexi Cap Fund has been managed by Anup Upadhyay in recent years, with prior fund managers including R. Srinivasan. Fund manager changes at SBI MF have been relatively more frequent than at PPFAS.

Performance comparison

The PPFCF Regular Plan growth option has delivered CAGR since inception (May 2013) of approximately 19.06 per cent versus the Nifty 500 TRI at 12.4 per cent. The Direct Plan CAGR is higher.

The SBI Flexi Cap Fund has delivered long-term CAGR in the 14 to 16 per cent range over the past 10 years, broadly tracking the category average. The fund has been a steady performer but has not consistently led the category.

Expense ratio

PPFCF Direct Plan expense ratio is approximately 0.63 per cent, while SBI Flexi Cap Fund Direct Plan is approximately 0.85 per cent. The Regular Plan differential is similarly in favour of PPFCF.

Tax treatment

Both schemes are equity-oriented funds maintaining at least 65 per cent in Indian equity, qualifying for equity mutual fund taxation in India under Section 111A and Section 112A for short-term and long-term capital gains respectively.

Distribution

PPFCF is distributed through PPFAS SelfInvest, CAMS, MF Central, BSE StAR MF, MF Utility, and third-party platforms. The SBI Flexi Cap Fund has the widest distribution footprint in the country through SBI’s branch network of over 22,000 branches plus all major third-party platforms.

Recent developments

PPFCF crossed Rs 1 lakh crore AUM in May 2025, the first active equity mutual fund scheme in India to do so. The AMC launched the Parag Parikh Dynamic Asset Allocation Fund in February 2024 and the Parag Parikh Large Cap Fund in February 2026.

SBI Mutual Fund has expanded its passive offerings significantly through 2024 to 2026 in response to the passive investing wave in India and has continued to grow its overall AUM base.

Criticism and debates

PPFCF has attracted criticism for the high cash allocation in 2026, the AUM size, and the compression of overseas exposure due to SEBI cap constraints. Rajeev Thakkar has addressed these in monthly factsheet commentaries.

The SBI Flexi Cap Fund has attracted criticism for relatively modest outperformance versus the benchmark over 5-year and 10-year windows.

See also

External references

References

  1. PPFAS Mutual Fund factsheet for May 2026.
  2. SBI Mutual Fund monthly factsheet.
  3. SEBI circular on Flexi Cap category creation, November 2020.
  4. AMFI monthly AUM data.
  5. PPFCF Scheme Information Document.
  6. SBI Flexi Cap Fund Scheme Information Document.

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