PPFAS Mutual Fund assures no dramatic change in portfolio of its multi cap fund

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PPFAS Mutual Fund assures to run the Parag Parikh long Term Equity Fund in the same manner with no or little disruptions. Why is this scheme important? Parag Parikh long Term Equity Fund is a seven-year old fund which has since ever outperformed much larger and older funds in the category. “One of the advantages of running very few schemes is to navigate regulatory risk. Each mutual fund is allowed to launch one scheme per category. All other categories are open for us to reclassify to the category to run the scheme in the same way as we are running it currently. We will make sure that there are no disruptions or very little disruptions,” said Neil Parikh, CEO, PPFAS Mutual Fund during the online AGM held on October 24.

PPFAS Mutual Fund has only three schemes on offer- two equity schemes including a multi cap fund and an ELSS or tax-saving mutual fund and one liquid debt mutual fund scheme.

Parag Parikh Long Term Equity Fund has given 24% returns in the last one year. The scheme has been a consistent performer since launch. The scheme has topped the category in terms of SIP returns as well. 3-year SIP in PPFAS’s multi cap fund has given 18% annualised returns and a 5-year SIP has fetched 16% annualised returns.

The scheme manages assets worth 4,798 crore. It is managed by Rajeev Thakkar, Raunak Onkar (international equities), and Raj Mehta (debt).

On September 11, Sebi came out with a circular on ‘Asset Allocation of Multi Cap Funds’, which requires a multi cap fund to invest a minimum of 75% of its total assets in equities and equity-related instruments with minimum allocation of 25% each in large cap companies, mid cap companies and small cap companies.

At present, the rule is to invest a minimum of 65% in equities without any sub limits.

PPFAS Mutual Fund invests minimum 65% of its portfolio in domestic equities and maximum 35% in international equities.

“Close to 4 lakh investors who have invested with us on the basis of the existing strategy. Given that we have very limited number of schemes, we have option of focused fund or thematic scheme. We have a various options, we will communicate in due course. You can be comfortable in the thought that the scheme structure will not change, portfolio will not see any dramatic change. At max we can see a change in the scheme name or scheme category,” said Rajeev Thakkar, CIO & Equity Fund Manager, PPFAS Mutual Fund addressing investors during the investors’ meet .

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