Parag Parikh Flexi Cap Fund Raises Stake in ITC, TCS; Cuts Coal India

The Parag Parikh Flexi Cap Fund, India’s largest flexi-cap and active equity fund by assets under management (AUM), reshuffled its portfolio in January 2026.

The fund increased its exposure to ITC and Tata Consultancy Services (TCS), along with 14 different stocks, while reducing holdings in Coal India and Multi-Commodity Exchange of India (MCX).

A month after the fund expanded its holdings in ITC and several other stocks in December, the changes indicate a continuation of the fund's selective accumulation approach rather than a one-time change.

Which Stocks Did The Fund Add To Or Exit In January?

In January, the Parag Parikh Flexi Cap fund made net additions across multiple large-cap names. About 6.12 Cr. shares of ITC were added during the month, taking the fund’s holding to 20.99 Cr. shares, up from 14.87 Cr. shares in December.

The fund also increased its exposure to Tata Consultancy Services by adding 38.11 lakh shares, and raised its holding in Kotak Mahindra Bank by 9.84 Cr. shares. In total, stakes were increased in 16 stocks during the month.

On the other side of the ledger, the fund reduced exposure to Coal India and MCX. About 22.07 lakh shares of Coal India and 2,247 shares of MCX were sold, indicating a measured trimming rather than a sharp exit.

A more decisive move was seen in Bharti Airtel, where the fund made a complete exit by selling 2.11 Cr. shares from the portfolio.

Two new stocks were added during the month. The fund bought 4.62 lakh shares of CIE Automotive India and 1.99 lakh shares of CMS Info System, bringing the total number of stocks in the portfolio to 31 in January, up from 30 in December.

Exposure to the other 11 stocks remained unchanged, including holdings such as Axis Bank, ICICI Bank, and Zydus Wellness.

How Have The Portfolio Structure And AUM Changed?

The fund's AUM increased slightly from ₹1,33,308 Cr. in December to ₹1,33,969 Cr. in January 2026, solidifying its standing as the largest actively managed equity fund in the nation.

As of January, around 62.83% of the fund was invested in large-cap stocks, while mid-caps and small-caps accounted for 2.4% and 2.72%, respectively. The remaining 32.5% was classified under “others”, which includes overseas equities, cash, and related instruments.

The fund’s stated investment objective remains unchanged: to generate long-term capital growth through an actively managed portfolio spanning Indian equities, foreign equities, equity-linked instruments and selective debt exposure. The scheme is benchmarked against the NIFTY 500 TRI, reflecting its flexible mandate across market capitalisations.

Following similar changes in December, when the fund's holdings in ITC and ten other stocks increased, the January reshuffle suggests a phased strategy focused on positioning for development rather than bold short-term calls.

What Does The Fund's Performance History Indicate?

The fund’s return history has not been a straight line. Some years stood out sharply; for example, 30.10% in 2017, 33.55% in 2020, and an even stronger 46.97% in 2021. There were also quieter phases, such as 2019, when upmoves were closer to 15.34%, and a clear dip in 2022, when returns slipped 6.29% as markets turned weak.

However, that phase did not last long. The numbers swung back in the next two years, with 37.64% in 2023 and 24.81% in 2024, before cooling to 8.55% in 2025. The current year has started on a softer note, with returns at -1.07% so far in 2026, largely reflecting choppy early trading conditions.

Placed next to the January portfolio disclosure, the pattern looks familiar. Changes tend to be measured rather than abrupt. For now, the fund’s latest moves suggest continuity rather than a shift in approach.

Sources:

ET

Moneycontrol