Parag Parikh Long Term Equity Fund: India v/s International Returns 2020

Parag Parikh Long Term Equity Fund (PPLTEF) performance has topped the charts in the last 1 and 3 years. For the period ending November 2020, it has delivered 14% CAGR in the last 3 years versus Nifty’s 6.6% CAGR. Investors now ask whether it was domestic stocks or international stocks that led to such stellar performance.

So what really led to superior performance for Parag Parikh Long Term Equity Fund: India or International?

Parag Parikh Long Term Equity Fund (PPLTEF) is one of the few funds that manage Indian and international stocks as one equity portfolio. As per the fund manager, different economies track the different market and economic cycles. Constructing a portfolio using this strategy would not only smoothen the returns but also open up more investment opportunities globally.

For investors, international exposure reduces volatility in returns.

PPLTEF has completed 7.5 years. Since its inception, it has delivered a stellar 18.5% CAGR versus just a 10.5% CAGR from Nifty.

One wonders what led to superior performance for the fund. Is it India stocks or International?

We compiled the data from the monthly portfolio disclosures of Parag Parikh Long Term Equity Direct Plan (G).

We broke down the portfolio into India and International. We computed returns for each portion and then indexed it on a proportionate basis.

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