Parag Parikh Flexi Cap Fund and Motilal Oswal Flexi Cap Fund represent two distinctly different investment approaches within India’s flexi cap mutual fund category. Parag Parikh follows a conservative, globally diversified strategy with significant international holdings and debt allocation, whilst Motilal Oswal adopts an extremely concentrated high-conviction approach with minimal large-cap exposure and aggressive portfolio turnover. This comprehensive comparison analyses returns, portfolio composition, expense ratios, and investment strategies to help investors understand which flexi cap fund aligns with their wealth creation objectives.
Parag Parikh Flexi Cap fund and Motilal Oswal Flexi Cap fund: Key metrics at a glance
Here is a detailed comparison of essential fund parameters as of November 2025:
| Parameter | Parag Parikh Flexi Cap Fund | Motilal Oswal Flexi Cap Fund |
|---|---|---|
| NAV (21 Nov 2025) | ₹86.44 | ₹62.28 |
| Fund Size (AUM) | ₹1,25,799.64 Cr | ₹14,319.21 Cr |
| Expense Ratio | 1.28% | 1.71% |
| Crisil Rating | ⭐⭐⭐⭐⭐ (5 Stars) | ⭐⭐⭐ (3 Stars) |
| Risk Level | Very High | Very High |
| Portfolio Turnover | 39.00% | 128.00% |
| Number of Stocks | 90 | 16 |
| Fund House | PPFAS Mutual Fund | Motilal Oswal Mutual Fund |
| Inception Date | 24-May-2013 | 28-Apr-2014 |
Parag Parikh Flexi Cap Fund commands the largest asset base amongst all Indian flexi cap funds at ₹1,25,799.64 crore—nearly nine times larger than Motilal Oswal’s ₹14,319.21 crore. The most striking contrast lies in portfolio concentration—Parag Parikh’s highly diversified 90-stock portfolio versus Motilal Oswal’s extremely concentrated 16-stock holdings. Portfolio turnover differences are equally dramatic, with Motilal Oswal’s aggressive 128% turnover dwarfing Parag Parikh’s moderate 39%. The two-star Crisil rating gap reflects their divergent recent performance trajectories.
Parag Parikh Flexi Cap fund vs Motilal Oswal Flexi Cap fund: One-year and short-term returns
Recent performance data reveals significant divergence between these funds:
| Period | Parag Parikh Returns | Motilal Oswal Returns | Category Average |
|---|---|---|---|
| 1 Week | 0.43% | -0.05% | -0.22% |
| 1 Month | -0.46% | -0.95% | -0.26% |
| 3 Months | 2.12% | 0.62% | 1.88% |
| 6 Months | 4.94% | 4.20% | 5.23% |
| YTD | 6.74% | -3.11% | 3.36% |
| 1 Year | 9.58% | 5.09% | 6.78% |
Parag Parikh Flexi Cap Fund has substantially outperformed with 9.58% one-year returns against Motilal Oswal Flexi Cap Fund’s 5.09%. The year-to-date performance gap is even more pronounced—Parag Parikh generating 6.74% whilst Motilal Oswal shows negative returns of -3.11%. Motilal Oswal’s one-year returns of 5.09% trail even the category average of 6.78%, explaining its recent Crisil rating downgrade from 5 to 3 stars.
Parag Parikh Flexi Cap fund and Motilal Oswal Flexi Cap fund: Long-term returns comparison
Long-term performance comparison reveals interesting patterns across market cycles:
| Period | Parag Parikh Annualised Returns | Motilal Oswal Annualised Returns | Category Average |
|---|---|---|---|
| 2 Years | 18.74% | 23.72% | 16.38% |
| 3 Years | 20.93% | 22.31% | 16.59% |
| 5 Years | 21.03% | 17.35% | 18.12% |
| 10 Years | 17.57% | 13.51% | 14.21% |
| Since Inception | 18.83% | 17.12% | 14.19% |
Interestingly, Motilal Oswal Flexi Cap Fund outperforms Parag Parikh over two and three-year periods with 23.72% and 22.31% annualised returns respectively, compared to Parag Parikh’s 18.74% and 20.93%. However, Parag Parikh demonstrates superior long-term consistency with 21.03% five-year returns versus Motilal Oswal’s 17.35%—a substantial 3.68 percentage point difference. Over a decade, Parag Parikh’s 17.57% returns significantly exceed Motilal Oswal’s 13.51%, highlighting the importance of consistent performance across market cycles.
Parag Parikh Flexi Cap fund vs Motilal Oswal Flexi Cap fund: SIP returns analysis
Systematic Investment Plan returns reflect real wealth creation experience for retail investors:
| SIP Period | Parag Parikh Absolute Returns | Parag Parikh Annualised | Motilal Oswal Absolute Returns | Motilal Oswal Annualised |
|---|---|---|---|---|
| 1 Year (₹12,000 invested) | 5.52% | 10.33% | 4.11% | 7.67% |
| 2 Years (₹24,000 invested) | 13.23% | 12.41% | 13.87% | 13.00% |
| 3 Years (₹36,000 invested) | 30.37% | 17.96% | 36.20% | 21.08% |
| 5 Years (₹60,000 invested) | 57.20% | 18.12% | 58.75% | 18.52% |
| 10 Years (₹1,20,000 invested) | 176.39% | 19.29% | 116.58% | 14.77% |
Parag Parikh Flexi Cap Fund delivers superior one-year SIP returns with 5.52% absolute gains versus Motilal Oswal’s 4.11%. However, over three years, Motilal Oswal edges ahead with 36.20% absolute returns and 21.08% annualised returns compared to Parag Parikh’s 30.37% and 17.96%. The 10-year SIP comparison reveals Parag Parikh’s substantial advantage—176.39% absolute returns versus Motilal Oswal’s 116.58%, demonstrating the power of consistent long-term compounding.
Parag Parikh Flexi Cap fund and Motilal Oswal Flexi Cap fund: Portfolio allocation strategy
Portfolio composition reveals fundamentally different investment approaches:
| Asset Class | Parag Parikh Flexi Cap Fund | Motilal Oswal Flexi Cap Fund |
|---|---|---|
| Total Equity | 77.47% | 89.28% |
| Domestic Equity | 65.97% | 89.28% |
| Foreign Equity | 11.50% | 0.00% |
| Debt | 11.94% | 0.00% |
| Others | 10.59% | 10.72% |
| Large Cap | 49.80% | 5.17% |
| Mid Cap | 2.29% | 7.96% |
| Small Cap | 2.84% | 6.17% |
| Other Equity | 22.54% | 69.99% |
| Number of Stocks | 90 | 16 |
The portfolio allocation differences are dramatic. Parag Parikh maintains a balanced approach with 49.80% large-cap allocation, 11.50% international equities, and 11.94% debt holdings. Motilal Oswal’s radically different approach features just 5.17% large-cap exposure with a massive 69.99% in “Other” equity categories—essentially operating as a concentrated mid and small-cap strategy despite its flexi cap classification. The 90 versus 16 stock difference represents one of the widest diversification gaps in flexi cap fund comparisons.
Parag Parikh Flexi Cap fund vs Motilal Oswal Flexi Cap fund: Top 10 holdings comparison
Stock selection philosophies differ dramatically between these funds:
| Rank | Parag Parikh Holdings | Sector | % | Motilal Oswal Holdings | Sector | % |
|---|---|---|---|---|---|---|
| 1 | HDFC Bank Ltd | Private Banking | 8.02% | Persistent Systems Ltd | IT Services | 10.06% |
| 2 | Power Grid Corporation | Power Transmission | 6.00% | Eternal Ltd | E-commerce | 8.88% |
| 3 | Bajaj Holdings & Investment | Holding Company | 5.20% | Dixon Technologies Ltd | Consumer Electronics | 8.66% |
| 4 | Coal India Ltd | Coal Mining | 5.01% | Coforge Ltd | IT Services | 8.52% |
| 5 | ITC Limited | Diversified FMCG | 4.64% | Kalyan Jewellers India | Jewellery | 8.36% |
| 6 | ICICI Bank Ltd | Private Banking | 4.63% | Polycab India Ltd | Electricals | 8.29% |
| 7 | Kotak Mahindra Bank | Private Banking | 4.04% | Trent Limited | Retail | 7.38% |
| 8 | Alphabet Inc | Technology (Foreign) | 3.75% | Cholamandalam Finance | NBFC | 6.96% |
| 9 | Maruti Suzuki India | Automobiles | 3.47% | CG Power & Industrial | Electrical Equipment | 6.17% |
| 10 | Bharti Airtel Ltd | Telecom | 3.46% | Siemens Energy India | Power Generation | 4.45% |
Parag Parikh Flexi Cap Fund demonstrates balanced exposure across banking, power, FMCG, and uniquely, international technology through Alphabet Inc (Google’s parent company). Motilal Oswal Flexi Cap Fund reveals an entirely different philosophy—extremely high-conviction positions in emerging growth companies. Each of Motilal Oswal’s top holdings commands 4-10% weightage, with the entire top 10 comprising approximately 77.73% of the portfolio. The fund focuses heavily on IT services (Persistent, Coforge), consumer discretionary (Dixon, Kalyan, Trent), and electrical manufacturing (Polycab, CG Power).
Parag Parikh Flexi Cap fund and Motilal Oswal Flexi Cap fund: Expense ratio and cost comparison
Investment costs significantly impact long-term wealth creation:
| Cost Parameter | Parag Parikh Flexi Cap Fund | Motilal Oswal Flexi Cap Fund |
|---|---|---|
| Expense Ratio | 1.28% | 1.71% |
| Category Average | 1.89% | 1.89% |
| Cost Difference | Below Average | Below Average |
| Annual Cost on ₹10 Lakh | ₹12,800 | ₹17,100 |
| 10-Year Cost Impact on ₹10 Lakh | ₹1,28,000 | ₹1,71,000 |
| Cost Savings (Parag Parikh vs Motilal) | ₹4,300/year | – |
Parag Parikh Flexi Cap Fund offers notable cost advantage with 1.28% expense ratio compared to Motilal Oswal’s 1.71%. Investors save approximately ₹4,300 annually per ₹10 lakh invested by choosing Parag Parikh. Additionally, Motilal Oswal’s extremely high portfolio turnover of 128% generates additional transaction costs not fully reflected in the expense ratio, potentially widening the effective cost gap substantially.
Parag Parikh Flexi Cap fund vs Motilal Oswal Flexi Cap fund: Risk metrics and Crisil ratings
Risk assessment reveals significant differences in fund characteristics:
| Risk Parameter | Parag Parikh Flexi Cap Fund | Motilal Oswal Flexi Cap Fund |
|---|---|---|
| Risk-O-Meter | Very High Risk | Very High Risk |
| Crisil Rating | 5 Stars | 3 Stars |
| Rating Description | Very Good Performance | Average Performance |
| Previous Rating | 5 Stars (Stable) | 5 Stars (Downgraded) |
| Portfolio Turnover | 39.00% | 128.00% |
| Number of Stocks | 90 | 16 |
| Concentration Risk | Low | Extremely High |
| Foreign Exposure | 11.50% | None |
| Debt Allocation | 11.94% | None |
The two-star Crisil rating gap—5 stars for Parag Parikh versus 3 stars for Motilal Oswal—reflects substantial differences in risk-adjusted performance. Parag Parikh’s 5-star rating has remained stable, whilst Motilal Oswal’s dramatic downgrade from 5 to 3 stars signals recent challenges. The portfolio turnover contrast (39% vs 128%) indicates fundamentally different trading philosophies, with Parag Parikh’s moderate approach generating lower friction costs compared to Motilal Oswal’s aggressive restructuring.
Parag Parikh Flexi Cap fund and Motilal Oswal Flexi Cap fund: Concentration risk analysis
The extreme concentration difference warrants detailed examination:
| Concentration Metric | Parag Parikh Flexi Cap Fund | Motilal Oswal Flexi Cap Fund |
|---|---|---|
| Total Stocks | 90 | 16 |
| Top 5 Holdings Weight | 28.87% | 44.48% |
| Top 10 Holdings Weight | 48.22% | 77.73% |
| Category Average Stocks | 63.19 | 63.19 |
| Single Stock Max Weight | 8.02% (HDFC Bank) | 10.06% (Persistent) |
| Large Cap Exposure | 49.80% | 5.17% |
| Banking Sector Weight | ~17% | 0% |
| IT/Technology Weight | ~4% (Alphabet) | ~19% |
Motilal Oswal Flexi Cap Fund runs one of the most concentrated portfolios in the entire flexi cap category with just 16 stocks against the category average of 63 stocks and Parag Parikh’s 90. The top 10 holdings constitute a massive 77.73% of Motilal Oswal’s portfolio versus Parag Parikh’s more balanced 48.22%. This extreme concentration creates significant single-stock and sector-specific risks, amplifying both upside potential and downside vulnerability.
Parag Parikh Flexi Cap fund and Motilal Oswal Flexi Cap fund: Built-in stability mechanisms comparison
Understanding risk mitigation approaches helps assess downside protection:
| Stability Mechanism | Parag Parikh Flexi Cap Fund | Motilal Oswal Flexi Cap Fund |
|---|---|---|
| Debt Allocation | 11.94% | 0.00% |
| Cash/Others Allocation | 10.59% | 10.72% |
| Total Non-Equity Buffer | ~22.53% | ~10.72% |
| Stock Diversification | 90 Stocks | 16 Stocks |
| Geographic Diversification | Yes (International) | No |
| Sector Diversification | High | Low |
| Large Cap Stability | 49.80% | 5.17% |
Parag Parikh Flexi Cap Fund maintains approximately 22.53% in non-equity holdings (debt and others), providing substantial cushion during market corrections. Motilal Oswal’s buffer stands at just 10.72% with zero debt allocation. Parag Parikh’s 49.80% large-cap allocation and 90-stock diversification across domestic and international markets contrasts sharply with Motilal Oswal’s 5.17% large-cap and 16-stock concentrated portfolio, offering significantly superior risk distribution.
Parag Parikh Flexi Cap fund and Motilal Oswal Flexi Cap fund: Sector allocation comparison
Sector distribution reveals contrasting investment convictions:
| Sector | Parag Parikh Weight | Motilal Oswal Weight |
|---|---|---|
| Private Banking | ~17% | 0% |
| IT Services & Technology | ~4% (Foreign) | ~19% |
| Consumer Electronics/Electricals | – | ~23% |
| Power/Utilities | ~6% | ~4.5% |
| FMCG | ~5% | 0% |
| Retail | – | ~7.4% |
| Jewellery | – | ~8.4% |
| NBFC/Financial Services | – | ~7% |
| Holding Companies | ~5% | 0% |
| Coal Mining | ~5% | 0% |
| Telecom | ~3.5% | 0% |
The sector allocation differences are striking. Parag Parikh maintains diversified exposure across banking (~17%), power, FMCG, holding companies, and international technology. Motilal Oswal demonstrates zero exposure to banking—the largest sector in most flexi cap funds—instead concentrating on technology (~19%), electrical/electronics manufacturing (~23%), retail, and jewellery. This divergent positioning explains their performance variations during different market phases.
Parag Parikh Flexi Cap fund and Motilal Oswal Flexi Cap fund: International diversification advantage
Parag Parikh Flexi Cap Fund’s unique international exposure provides distinctive benefits:
| International Investment Feature | Parag Parikh Flexi Cap Fund | Motilal Oswal Flexi Cap Fund |
|---|---|---|
| Foreign Equity Allocation | 11.50% | 0.00% |
| Primary International Holding | Alphabet Inc (3.75%) | None |
| Currency Diversification | USD Exposure | None |
| Global Technology Access | Google Parent Company | None |
| Geographic Diversification | India + Developed Markets | India Only |
| Currency Hedge Benefit | Rupee Depreciation Gains | None |
Parag Parikh’s 11.50% foreign equity allocation, including holdings in Alphabet Inc, provides Indian investors exposure to global technology innovation and developed market opportunities unavailable in purely domestic funds. During periods of rupee depreciation, foreign holdings potentially offer currency gains alongside capital appreciation. Motilal Oswal’s India-only focus limits such diversification benefits.
Parag Parikh Flexi Cap fund and Motilal Oswal Flexi Cap fund: Investment philosophy comparison
Understanding core investment philosophies helps investors align fund selection with their beliefs:
| Philosophy Aspect | Parag Parikh Flexi Cap Fund | Motilal Oswal Flexi Cap Fund |
|---|---|---|
| Investment Style | Value-Oriented Diversified | Concentrated High-Conviction |
| Geographic Scope | Global (India + International) | Domestic Only |
| Portfolio Approach | Highly Diversified (90 stocks) | Extremely Concentrated (16 stocks) |
| Market Cap Focus | Large Cap Dominant (50%) | Mid/Small Cap Dominant (70%+) |
| Turnover Strategy | Moderate (39%) | Very High (128%) |
| Risk Management | Conservative (High Debt/Cash) | Aggressive (No Debt) |
| Sector Focus | Balanced Diversification | Technology & Consumer |
| Track Record | 12+ Years | 11+ Years |
Parag Parikh follows a globally diversified, value-oriented approach emphasising quality companies with built-in stability through debt and international holdings. Motilal Oswal pursues an aggressive concentrated strategy betting heavily on emerging growth companies in technology and manufacturing. Parag Parikh’s philosophy suits investors seeking consistent, lower-volatility returns, whilst Motilal Oswal’s approach targets higher returns with significantly greater risk during favourable market conditions.
Parag Parikh Flexi Cap fund and Motilal Oswal Flexi Cap fund: Portfolio turnover impact
The dramatic turnover difference warrants detailed analysis:
| Turnover Aspect | Parag Parikh Flexi Cap Fund | Motilal Oswal Flexi Cap Fund |
|---|---|---|
| Portfolio Turnover Ratio | 39.00% | 128.00% |
| Category Average Turnover | 148.82% | 148.82% |
| Implied Holding Period | ~2.5 Years | ~10 Months |
| Trading Frequency | Moderate | Very High |
| Transaction Cost Impact | Lower | Higher |
| Tax Efficiency | Better | Lower |
| Investment Style | Patient Value | Active Trading |
Motilal Oswal’s 128% turnover means the fund manager essentially replaces the entire portfolio every 10 months on average, whilst Parag Parikh’s 39% turnover implies average holding periods of approximately 2.5 years. Higher turnover generates additional transaction costs and potentially lower tax efficiency. Parag Parikh’s more patient approach results in lower friction costs and better suitability for long-term wealth creation.
Parag Parikh Flexi Cap fund and Motilal Oswal Flexi Cap fund: Performance trajectory analysis
Understanding recent trends helps investors assess current momentum:
| Performance Trajectory | Parag Parikh Flexi Cap Fund | Motilal Oswal Flexi Cap Fund |
|---|---|---|
| Crisil Rating Trend | Stable (5 Stars) | Downgraded (5→3 Stars) |
| 1-Year Category Rank | 11/39 | 31/39 |
| YTD Performance vs Category | +3.38% above average | -6.47% below average |
| 6-Month Performance vs Category | -0.29% below average | -1.03% below average |
| Recent Momentum | Stable Positive | Weak/Negative |
| 2-Year vs 1-Year Performance | Consistent | Deteriorating |
The performance trajectories reveal stark contrast. Parag Parikh demonstrates stable positive momentum with consistent 5-star Crisil rating and upper-quartile category ranking (11th of 39 funds). Motilal Oswal’s trajectory shows significant deterioration—ranking 31st of 39 funds with negative year-to-date returns despite previously holding a 5-star rating. This divergence reflects the challenging environment for concentrated mid-cap strategies in recent market conditions.
Which flexi cap fund is suitable for different investor profiles
Selecting between these funds requires understanding personal investment preferences:
| Investor Profile | Recommended Fund | Reason |
|---|---|---|
| Conservative investors | Parag Parikh Flexi Cap Fund | 5-star rating, 22% non-equity buffer, 90-stock diversification |
| International diversification seekers | Parag Parikh Flexi Cap Fund | 11.50% foreign equity including Alphabet |
| High-conviction investors | Motilal Oswal Flexi Cap Fund | Concentrated 16-stock portfolio |
| Cost-conscious investors | Parag Parikh Flexi Cap Fund | Lower expense ratio (1.28% vs 1.71%) |
| Long-term wealth builders (10+ years) | Parag Parikh Flexi Cap Fund | Superior 10-year SIP returns (19.29% vs 14.77%) |
| Technology sector believers | Motilal Oswal Flexi Cap Fund | Focus on Persistent, Coforge, Dixon |
| Banking sector bulls | Parag Parikh Flexi Cap Fund | Significant private banking exposure (~17%) |
| Consumer discretionary believers | Motilal Oswal Flexi Cap Fund | Kalyan Jewellers, Trent holdings |
| Risk-averse investors | Parag Parikh Flexi Cap Fund | Diversified holdings, debt cushion |
| Aggressive growth seekers | Motilal Oswal Flexi Cap Fund | Concentrated mid/small-cap exposure |
| First-time investors | Parag Parikh Flexi Cap Fund | Established track record, stable 5-star rating |
Parag Parikh Flexi Cap fund and Motilal Oswal Flexi Cap fund: Ideal holding period
Investment horizon considerations differ significantly for these funds:
| Holding Period Consideration | Parag Parikh Flexi Cap Fund | Motilal Oswal Flexi Cap Fund |
|---|---|---|
| Minimum Recommended Period | 5 Years | 7-10 Years |
| Optimal Period | 7+ Years | 10+ Years |
| Volatility Expectation | Moderate | Very High |
| Recovery Time Post-Drawdown | Moderate | Extended |
| Suitable for Goal-Based Investing | Yes | Requires Longer Horizon |
| SIP Suitability | Excellent | Good (Long-term only) |
Given Motilal Oswal’s concentrated approach and higher volatility, investors should maintain longer investment horizons of 10+ years to navigate market cycles effectively. Parag Parikh’s diversified portfolio with built-in stability mechanisms suits moderate 5-7+ year horizons. Investors with shorter time frames or specific goal-based requirements may find Parag Parikh’s balanced approach more suitable.
Parag Parikh Flexi Cap fund and Motilal Oswal Flexi Cap fund: Fund house philosophy comparison
Understanding fund house DNA provides additional context:
| Fund House Aspect | PPFAS Mutual Fund | Motilal Oswal Mutual Fund |
|---|---|---|
| Investment Philosophy | Value Investing, Global Diversification | Growth Investing, High Conviction |
| Fund Management Style | Buy and Hold | Active Trading |
| Risk Appetite | Moderate-Conservative | Aggressive |
| Investor Communication | Transparent, Educational | Performance-Focused |
| AUM Growth | Organic, Steady | Variable |
| Flagship Fund Performance | Consistent | Cyclical |
PPFAS Mutual Fund has built its reputation on transparent, value-oriented investing with a distinctive global perspective. Motilal Oswal Mutual Fund emphasises growth investing with high-conviction concentrated bets. These philosophical differences permeate fund management decisions, explaining the divergent portfolio structures and performance patterns.
Final verdict: Parag Parikh Flexi Cap fund vs Motilal Oswal Flexi Cap fund
Parag Parikh Flexi Cap Fund and Motilal Oswal Flexi Cap Fund represent polar opposite approaches within the flexi cap universe. Parag Parikh’s stable 5-star Crisil rating, superior one-year returns of 9.58%, lower expense ratio of 1.28%, and conservative approach with 90-stock diversification, 11.50% international holdings, and 11.94% debt allocation make it suitable for investors seeking consistent, risk-adjusted returns with built-in stability mechanisms. The fund’s ₹1,25,800 crore AUM—the largest amongst flexi cap funds—demonstrates exceptional investor trust built over 12 years of consistent performance.
Motilal Oswal Flexi Cap Fund’s recent Crisil downgrade from 5 to 3 stars reflects challenging one-year performance of just 5.09%, trailing even the category average. However, its competitive two and three-year returns of 23.72% and 22.31% demonstrate potential during favourable market conditions. The fund’s extremely concentrated 16-stock portfolio, minimal 5.17% large-cap allocation, zero debt cushion, and aggressive 128% turnover ratio suit investors with very high risk tolerance, extended investment horizons of 10+ years, and conviction in the fund manager’s stock-picking abilities in technology and consumer discretionary sectors.
Investors prioritising consistency, diversification, international exposure, proven long-term track record, and risk-adjusted returns should favour Parag Parikh Flexi Cap Fund. Those comfortable with extreme concentration risk, higher volatility, longer holding periods, and conviction in emerging growth companies may consider Motilal Oswal Flexi Cap Fund, recognising its recent underperformance whilst acknowledging its potential for outperformance during growth-oriented market cycles.
Disclaimer: Mutual fund investments are subject to market risks. Past performance does not guarantee future returns. Investors should consult financial advisors before making investment decisions.
