Parag Parikh Mutual Fund Summary
Established on May 24, 2013, this is an Open-Ended Equity Scheme with an aim to generate long term capital growth from an actively managed portfolio of equity and equity-related securities. It has a diversified approach with the flexibility of investing a minimum 65% in Indian equities and 35% in the overseas equity/domestic debt market. This scheme is only suitable for ‘true’ long term investors.
Portfolio Diversification (as on 30th June 2020)
|Core Equity Asset||65.42%|
|Overseas Securities, IDRS and ADRs||28.91%|
|TREP incl. Cash & Cash Equivalent||5.50%|
|Fixed Deposit Receipt||0.17%|
|Internet & Technology||15.94%|
|Hotel, Resort & Recreational activities||1.50%|
|Debt & Money Market Instrument||5.67%|
Top 10 Holding (as on 30th June 2020)
|Alphabet Inc – Class C||7.91%|
|HDFC Bank Ltd.||6.93%|
|Bajaj Holdings & Investment Ltd.||6.25%|
|Hero Motocorp Ltd.||5.74%|
|ICICI Bank Ltd.||3.68%|
|Axis Bank Ltd.||3.44%|
Parag Parikh Fund Performance
This scheme has beaten its benchmark since inception (May 27, 2013).
Performance (As on 30th June, 2020)
|Period||Fund Return||Benchmark Return|
- According to the respective fund house, the scheme is not limited to market cap, sector or geography which gives a diversified approach. The operations of domestic, foreign investment and fixed income components are managed by three different managers.
- Along with the dissection of financial statements, there will also be an overlay of the study of human emotions while investing.
- The investment focuses on individual companies rather than the macro-economic situation.
- The factors considered are quality of management & sector, performance & valuation of the companies. In foreign securities, it uses currency futures to hedge the currency exposure.
The domestic equity section is managed by Mr. Rajeev Thakkar since May 13, 2013 (CA, CFA and CFP having overall 18 years experience in fund management).
The overseas securities section is managed by Mr. Raunak Onkar since May 13, 2013 (MMS Finance).
The fixed income section has been managed by Mr. Raj Mehta since Jan 27, 2016 (CA & CFA Level 3).
Important Measures (As on 30th June, 2020)
Benchmark Index: NIFTY 500 (TRI)
AUM (as on 30th June) : ₹ 3515.68 crores
Expense Ratio: Regular Plan- 1.97% & Direct Plan- 1.10%
(Including additional expenses & GST on management fees)
Entry Load: NA
2.00% (redeemed on/before 365 days)
1.00% (redeemed after 365 days but on/before 730 days)
No exit load on redemption post 730 days.
Portfolio Turnover: 61.85% (including Equity Arbitrage)
Portfolio Turnover: 4.56% (excluding Equity Arbitrage)
NAV *As per fund fact sheet 30th June, 2020
|Regular Plan||Direct Plan|
Investment Risk: Moderately High
Investment Style: Value
Market capitalization: Multi Cap Fund
Minimum Application Amount:
New Purchase- 1000 INR.
Additional Purchase- 1000 INR.
Monthly SIP- 1000 INR.
Quarterly SIP- 3000 INR.
Scheme suitable only if you are an investor-
- With a long term investment horizon.
- Where “Long term” means minimum five years.
- Who don’t look for instant satisfaction in returns by tracking the NAV of the fund daily.
- Who gets appealed by low stock price and valuation.
- Who believe in fundamental attributes with strong scope of growth.
Parag Parikh Long Term Equity Fund (PPLTEF) is one of only a handful of Indian mutual fund schemes to invest in a basket of Indian and foreign stocks. Sometimes, the Indian subsidiary of a multinational company may be very highly valued, and hence not investment-worthy. However, its parent company may be available at a much more reasonable valuation. PPFAS can now take advantage of such situations.
PPFAS employs the same time-tested principles of value investing while choosing both, Indian and foreign stocks. They reduce the risk of their investors losing due to sharp currency appreciation of the Indian rupee, by hedging approximately 80% of our foreign exposure through currency contracts.
PPFAS Asset Management Private Ltd. is the asset manager of PPFAS Mutual Fund, established back in 2012. As of the year ended 2019, the AMC had a total income of Rs. 2020.73 cr; Profit before tax: 491.87 crs. The company currently offers 3 schemes and has an asset under management of Rs. 1,961.5 Crore as on 31st March 2019.
Address: 81/82, 8th Floor, Sakhar Bhavan, Ramnath Goenka Marg, 230, Nariman Point, Mumbai – 400 021.
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