PPFAS Tax Saver vs Flexi Cap Fund: Same stocks but different returns. Which one performed better and why

As of 31 August 2026, Parag Parikh Flexi Cap Fund and Parag Parikh ELSS Tax Saver Fund held 38 of the same stocks. (AI-generated image used for representational purpose)AI Quick ReadParag Parikh ELSS Tax Saver Fund has emerged as the worst-performing fund among all equity mutual funds, excluding sectoral and thematic schemes, over the past year. The fund fell 9.52% during the period.

The comparison is notable because another fund from the same fund house, Parag Parikh Flexi Cap Fund, fell 2.71% over the same period. That leaves a 6.81 percentage-point gap between the two schemes.

Yet, the two funds had around 71% portfolio overlap. Their portfolios as of 31 August 2026 show that the two schemes held 38 of the same stocks. But the allocation to these common holdings was not always similar. Flexi Cap also had exposure to US equities, while ELSS had a higher overall equity allocation.

Here is what the August-end portfolio data reveals.

As of 31 August 2026, Parag Parikh Flexi Cap Fund and Parag Parikh ELSS Tax Saver Fund held 38 of the same stocks. These common holdings accounted for around 71% portfolio overlap between the two schemes.

But the overlap does not mean the two funds had similar exposure to each company. The weights assigned to several common stocks were significantly different.

Maharashtra Scooters, for instance, accounted for 5.76% of Parag Parikh ELSS Tax Saver Fund's portfolio, compared with just 0.10% in Parag Parikh Flexi Cap Fund. The stock declined 26.36% over one year.

CMS Info Systems had a 2.62% allocation in ELSS, compared with 0.16% in Flexi Cap. The stock fell around 46% over the same period.

Wipro accounted for 1.53% of the ELSS portfolio, while it did not feature in the Flexi Cap portfolio. Wipro's one-year return was around -34.82%.

Together, these three stocks represented 9.91% of the ELSS portfolio at the end of August, compared with only 0.26% in Flexi Cap.

Other common holdings also had different weights. Bajaj Holdings accounted for 7.32% in ELSS versus 5.14% in Flexi Cap. Coal India stood at 5.88% versus 5.02%, while Power Grid accounted for 6.41% versus 5.58%.

Some large common holdings had relatively similar allocations. HDFC Bank, for example, accounted for 7.29% of ELSS and 7.63% of Flexi Cap, while ICICI Bank had weights of 5.14% and 5.67%, respectively.

The data shows that substantial portfolio overlap can coexist with significant differences in individual stock weights.

The August-end portfolios also show a clear difference in overseas exposure.

Parag Parikh Flexi Cap Fund had 11.05% of its portfolio in foreign equities as of 31 August 2026. The allocation comprised four US technology companies.