Is Parag Parikh Flexi Cap suddenly a bad fund?

Suddenly, everyone has an opinion on why #ParagParikhFlexiCap Fund is a bad #MutualFund to Invest in!

Let's try to remove the 'noise' before making a decision.
1️⃣ #Equity doesn't owe investors outperformance every year.
If we can't tolerate a few years of underperformance, the problem may not be the fund, but our expectation from equity.
There will also be periods when equity returns are lower than #FixedDeposits (FDs).
Equity investments are strictly for the long term!

2️⃣ The #Cash holding is suddenly a problem.
When markets were falling, the fund's higher cash allocation helped cushion the fall, resulting in providing much-needed downside protection!
Everyone loved it.
Now equities have bounced back sharply, and that same cash is hurting relative performance.

3️⃣ #HDFCBank isn't performing.
The fund's continued significant exposure to HDFC Bank has also been discussed a lot.
That's the nature of active investing.
A fund manager takes a view.
Sometimes it works. Sometimes it doesn't!
If HDFC Bank performs a couple of years brilliantly from now, many of the same people criticising this allocation today will probably write posts about how the fund manager had the conviction to hold HDFC Bank when everyone else had given up!

4️⃣ #ActiveFunds will have periods of underperformance.
There will always be a new "star fund" after a period of outperformance.
And eventually, another fund will take its place.
Don't confuse last year's winner with next year's winner.
And if this becomes too much, opt for #IndexFunds!

5️⃣ And please stop cherry-picking #time periods.
I've seen comparisons being made for 22 months instead of the standard 1, 3, or 5 years, simply because the period created a better narrative for the influencer!
But most investors aren't investing a lump sum on one magical date.
They are investing through #SIPs, or regular additional investments.
So the more useful question isn't:
"What did the fund return between these two dates?"
It's:
"What return did I actually earn on my money?"

#MoneyMinusNoise
- Start tapering equity exposure much before the goal matures! Remember boring #AssetAllocation
- Embrace #Volatility in Equity Investments - Every year can't give 12% returns as shown by finfluencers. Equity investments are not an Excel sheet straight line graph!
- #Hindsight bias always prevails - People making fun today might praise the same person in the future, if the person bets work!
- Take informed decisions and not because someone said something on #SocialMedia. Read, Analyse, and Act!

Are you an investor in the fund? What action are you planning to take?

And if you are looking forward to unbiased suggestions on #PersonalFinance, #CreditCards, feel free to reach out!