Last Updated on April 14, 2026 at 11:48 am
Investors captivated by Axis mutual funds stellar 2019 performance wonder if Axis Growth Opportunities Fund can be an alternative to Parag Parikh Long Term Equity Fund. Both funds can allocate a portion of their funds to international stocks. We compare their investment syles and portfolio allocation to understand how they differ.
The international exposure in these funds will make a difference to an investors portfolio only if they take on significant exposure. Most investor portfolios are cluttered with tens of funds and even if they buy either of these, they can manage only 5-10% exposure. This means their portfolios will have only about 5-10% of the international exposure in these funds. Therefore it is important to consider these funds only if your portfolio needs it!
It should be kept in mind that Axis Growth Opportunities Fund (AGOF) is less than 14 months old (launched in Oct 2018) while Parag Parikh Long Term Equity Fund (PPLTEF) is three months shy of its seventh birthday (launched May 2013).
🔥Secure your future with our Robo-advisory tool trusted by over 3,500 investors and advisors. From effortless retirement planning to funding your children’s biggest dreams, turn your financial goals into reality. 🔥
Subscribe for money management solutions via email! (Link takes you to our email sign-up form) Join 32,000+ readers in our community.
👉 New Tool Alert! NaviPlan: A Privacy-Focused Multi-asset Tracker and Goal Planner 👈
Thanks to Axis Bank distribution networks, AGOF already has 40% of PPLTEFs AUM (2585 Crores as on Dec 31st 2019). In this short period, it makes no sense to look at AGOF’s performance in terms of risk or reward (the featured image above shows the NAV movement since the launch of the Axis fund).
PPLTEF is a fairly established multicap fund with excellent risk-adjusted performance since inception. See Parag Parikh Long Term Equity Fund Review. Readers familiar with my yearly audits will know that this forms the core of my retirement portfolio. Its current AUM levels are still low and since it does not have an associated bank the risk of a sudden influx of funds is fairly low.
So choosing PPFLTEF over AGOF on the basis of past performance is a no-brainer. The biggest risk associated with PPFLTEF is the risk of active management. What if Rajeev Thakkar is no longer the fund manager? Will this not affect performance?
No one can say for sure but older investors may recall Rajeev Thakkar faced the prospect of jail for being involved in the accident that killed Parag Parikh and was later cleared. This worried many investors then. So it is a real risk. He could quit anytime to start on his own etc. The scheme has two other FMs for the international equity and bond segment but do they get as much attention?
As mentioned above, the biggest risks associated with AGOF is the lack of history and chances of huge influx over a short period of time via Axis Bank. With a 1% extra expense ratio in the regular plan, it is a definite possibility.
Also, how long would the recent performance of Axis funds last, is another problem. A top performer can only move down while an average performer has a lot more breathing space. It would better to give AGOF some more time to perform especially when the market falls (and the aum problem is temporarily out of the equation).
Aside from March 2016, PPLETF has also not been seriously tested during a market fall, although it has performed admirably after budget 2018 when the mid and small cap segments started falling.
Both funds have a common risk: if international markets collapse these funds can take a bigger hit than others with only Indian equity. Investors who want to “diversify their portfolio with international (read US) stocks” have to look beyond returns in the last couple of years and consider the risks of doing so.
With these remarks out of the way, let us consider some differences between these two funds. The importance of giving the AGOF fund more time can be clearly seen the graph below which shows the international equity exposure over time.
One cannot say whether AGOF will hold more or less or as many international stocks as PPLTEF. The market cap history of both the funds is shown below.
The significant midcap exposure in AGOF and the significant cash + derivatives (others) exposure in PPLTEF is striking. AGOF will tend to stay away from small cap stocks (although it has the freedom to invest), while PPLTEF has no such restrictions.
According to its scheme presentation, AGOF can invest up to 35% in international stocks (predominantly large caps), 30-35% in Indian large caps, 35-40% in Indian midcaps.
PPLTEF can also invest up to 35% in international stocks with no other restrictions related to market cap. AGOF is expected to be growth-oriented in its stock-selection style (a combination of bottom-up and top-down) as opposed to PPLTEFs focus on value investing (bottom-up stock selection with an emphasis on the long term).
Summary: Those are the key differences between these two funds. Investors opting for Axis Growth Opportunities Fund should bear in mind its lack of history and possibility of bank channel-driven AUM influx. Those who choose Parag Parikh Long Term Equity Fund based on past performance should keep in mind fund manager risk. Both funds can come under stress if international markets fall.
References:
- AGOF Scheme information document
- PPLTEF Scheme Information document
We are on Google News
Use this button to add freefincal.com as a preferred personal finance source on Google News.
Explore 1,400+ videos on YouTube!
Subscribe to get posts via email!
Join 32,000+ readers and get free money management solutions delivered to your inbox! (Link takes you to our email sign-up form)Join our WhatsApp Channel
Explore our products
🔥Join our community of 9000+ users! 🔥- Use our Robo-advisory Tool to create a complete financial plan! More than 3,500 investors and advisors use this! Use the discount code robo25 for 20% off. Plan your retirement (early, normal, before, and after), plus non-recurring financial goals (such as child education) and recurring financial goals (such as holidays and appliance purchases). The tool helps anyone aged 18 to 80 plan for retirement, plus six non-recurring and four recurring financial goals, with a detailed cash flow summary.
- Our Flagship Course! Learn to manage your portfolio like a pro to achieve your goals regardless of market conditions! More than 3,500 investors and advisors are part of our exclusive community! Get clarity on how to plan for your goals and achieve the necessary corpus no matter the market conditions! Watch the first lecture for free! One-time payment! No recurring fees! Lifelong access to videos! Reduce fear, uncertainty and doubt while investing! Learn how to plan for your goals before and after retirement with confidence.
- Join the freefincal investor circle! An exclusive space for investors, advisors, fintech employees and students to access financial planning and insurance tools, mutual fund and stock analysis tools, coding strategies and Excel macros for data extraction. 750+ members are now part of our investor circle.
- Increase your income by getting people to pay for your skills! More than 900 salaried employees, entrepreneurs and financial advisors are part of our exclusive community! Learn how to get people to pay for your skills! Whether you are a professional or small business owner seeking more clients through online visibility, or a salaried individual looking for side or passive income, we will show you how to do it by showcasing your skills and building a community that trusts and pays you. (Watch the 1st lecture for free). One-time payment! No recurring fees! Lifelong access to videos!
- Portfolio Tracker! Track your mutual funds and stock investments with our Google Sheet!
- We also publish monthly screeners for
Our Podcast: Let's Get Rich With Pattu
On Spotify: Let's Get RICH With PATTU! Every single Indian CAN grow their wealth! On Audible: Listen to the Let's Get Rich with Pattu Podcast
Listen to the Let's Get Rich With Pattu podcast on YouTube.
Now watch Let's Get Rich With Pattu தமிழில் (in Tamil)!About The Author
Dr M Pattabiraman giving a lecture
- Dr M. Pattabiraman (PhD) is the founder, managing editor and primary author of freefincal. He is an associate professor at the Indian Institute of Technology, Madras.
- He has over 14 years of experience publishing news analysis, research and financial product development. He has over 28 years of teaching and research experience. He is also a public speaker and keynote presenter.
- He is a patron and co-founder of “Fee-only India,” an organisation promoting unbiased, commission-free, AUM-independent investment advice.
- Connect with him via @pattufreefincal on X LinkedIn YouTube
- Pattabiraman has co-authored three print books.
This book helps you ask the right questions and find the right answers. It also includes nine online calculators to create custom solutions.
(2) Gamechanger: Forget Startups, Join Corporate & Still Live the Rich Life You Want. 
Both the boy and girl versions of "Chinchu Gets a Superpower".
Most investor problems stem from a lack of poor decision-making. We made bad decisions and money mistakes when we started earning, and we spent years undoing them. Why should our children go through the same pain? What is this book about? As parents, what if we had to groom one ability in our children that matters not only for money management and investing but for every aspect of life? My answer: Sound decision-making. So, in this book, we meet Chinchu, who is about to turn 10. The story follows what he wants for his birthday and how his parents plan it, while also teaching him key ideas about decision-making and money management. What readers say! 
Feedback from a young reader after reading Chinchu Gets a Superpower!
Must-read book even for adults! This is something that every parent should teach their kids right from a young age. The importance of money management and decision-making based on their wants and needs. Very nicely written in simple terms. - Arun.
About freefincal & its content policy
Freefincal is a News Media organisation dedicated to providing original analysis, reports, reviews and insights on mutual funds, stocks, investing, retirement and personal finance developments. We do so without conflict of interest and bias. Follow us on Google News. Freefincal serves more than three million readers a year (5 million page views) with articles based only on factual information and detailed analysis by its authors. All statements made will be verified with credible and knowledgeable sources before publication. Freefincal does not publish paid articles, promotions, PR, satire or opinions without data. All opinions will be inferences backed by verifiable, reproducible evidence/data. Contact Information: To get in touch, please use our contact form. (Sponsored posts or paid collaborations will not be entertained.)Our publications
- Your Ultimate Guide to Travel. This is an in-depth exploration of vacation planning, including how to find affordable flights, budget accommodations, and practical travel tips. It also examines the benefits of travelling slowly, both financially and psychologically, with links to relevant web pages and guidance at every step. Get the PDF for Rs 300 (instant download)
- How to profit from content writing: Our ebook is for those interested in getting a side income via content writing. It is available at a 50% discount for Rs. 500 only!