Summary of this article
Parag Parikh Flexi Cap Fund is the largest actively-managed mutual fund in India.
It manages assets over Rs 1.25 crore as on October 31, 2025.
Apart from domestic stocks, it invests in international stocks as well.
Have you ever wondered where your money goes when you invest in a mutual fund? Well, for most new investors, this often remains a mystery.
To help you understand, let's take a simple example of how your investment of Rs 1,000 in an equity fund gets distributed or invested. We will look at the portfolio of the largest actively-managed mutual fund scheme – Parag Parikh Flexi Cap Fund to get a sense of how mutual funds invest investors’ money.
The scheme manages over Rs 1.25 crore worth of assets as on October 31, 2025. As the name implies, it is a flexi-cap fund. A flexi-cap fund, as defined by the market regulator, the Securities and Exchange Board of India (Sebi) is an open-ended dynamic equity scheme that has to invest at least 65 per cent of its total assets across large-, mid-, and small-cap stocks.
Now, before we move on to the actual numbers, let’s understand we are using this fund only as an example to explain how and where funds invest your money. It is not our recommendation.
Rs 1,000 investment in Parag Parikh Flexi Cap Fund: Industry Allocation
We will start with the industry allocation. So, if you had invested Rs 1,000 in Parag Parikh Flexi Cap Fund, about Rs 200 would go into banks, Rs 124 to debt and money market instruments, Rs 95 held by the fund in cash, Rs 91.3 to computer software and Rs 69 of Rs 1,000 invested would go to automobiles. So, there are the five prominent industries where the fund would have invested your money.
Now this allocation is as of October 31, 2025. You can easily find out the portfolio allocation of any mutual fund scheme on the website of that specific mutual fund company under ‘Monthly Portfolio Disclosures’ section. Mutual fund companies are mandated to disclose the latest scheme portfolios on a monthly basis.
Next, let’s look at the companies or stocks where Parag Parikh Flexi Cap Fund invests.
Rs 1,000 investment in Parag Parikh Flexi Cap Fund: Company Allocation
According to the latest portfolio disclosures, Rs 80 out of Rs 1,000 invested that is 8 per cent of your total investment would have gone to HDFC Bank, the largest bank of the country in terms of market capitalisation and assets. The bank holds a market cap of Rs 15.09 lakh crore, as of closing of 7th day of November 2025.
Next, Rs 60 out of Rs 1,000 invested would have been into Power Grid Corporation, followed by Rs 52 in Bajaj Holdings, Rs 50 in Coal India and so on. You can take a look at the chart below to get details of top 10 stock holdings of Parag Parikh Flexi Cap Fund as on October 31,2025..
Now, apart from Indian companies, this scheme allocates some portion of its portfolio to foreign stocks as well. So, out of Rs 1,000 investment, Rs 38 that is 3.80 per cent of the fund’s assets are invested in Alphabet, the parent company of Google.
The fund has invested in other international stocks as well namely – Meta Platforms (company that owns Facebook, WhatsApp, Instagram, Threads etc.), Microsoft Corporation and Amazon.
In all, this scheme holds 11.50 per cent of its portfolio in international stocks. Understand it like this. Out of your total investment of Rs 1,000 in this fund, Rs 115 were invested in foreign stocks.
Here we have looked at a flexi-cap fund which is an equity fund. The portfolio allocation pattern varies across mutual fund categories like other equity funds, such as large-cap funds, mid-cap funds etc., debt funds, hybrid funds and so on.
And no portfolio remains the exact same. So, to stay updated, you may track the monthly portfolio disclosures of schemes you are interested in, on the mutual fund’s website.
