Mutual fund from PPFAS

POSTED BY Krishna Kishore Appala ON March 16, 2013 10:52 am COMMENTS (7)

Star Portfolio Manager of India “Parag Parikh” of PPFAS is introducing Mutual funds for the first time.

I clearly understand the implications and risks associated with NFO’s. But given his immense track record and being a highly respected PM in India, what is your opinion on this new fund ?

Would it be good to invest in this fund, or shall i wait for couple of years to track this fund.

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7 replies on this article “Mutual fund from PPFAS”

  1. TheZionView says:

    The Mandate says it can have about 0-35% in Debt will this have any impact on scheme being taken out of Equity MFs which enjoy 0% LTCG?

    1. Ramesh says:

      equity funds enjoy LTCG of 0% if they invest 65% or more in Indian equities. Rest 35% canbe used up in debt/ international/ cash or any other.

  2. Krishna Kishore Appala says:

    Dear Ramesh,

    You can find the scheme related document at

    http://www.sebi.gov.in/cms/sebi_data/attachdocs/1356331038553.pdf

    Thanks
    KK

  3. Krishna Kishore Appala says:

    Exactly Ramesh, you have well articulated the points. Even my policy says a big No No to NFO’s and IPO’s. But this surely is an exception.

    Another point to add is “Its having exactly the same investment strategy and style taken from Parag parikh’s 350 crore portfolio.”

    And another point is Even though SEBI mandated to charge expense ratio of 2.5% for funds below 100 Cr. This came up with only 2% as ER.

    Its still little more when compared to HDFC Top 200 (Ofcourse its because of its HUGE AUM), and much more than QLTE (who had crossed 100 Cr AUM).

    I will closely monitor it, if not immediately, I will surely invest in it if every thing goes well.

  4. Ramesh says:

    Despite my reluctance for NFOs, this is indeed a good scheme because:
    1. Atleast 65% investment in Indian, while rest canbe invested Internationally. <-- Great in my point of view (Templeton India Equity Income is the only other good option in this way). 2. Single equity scheme with Only Growth option. Doubly Great. Like Quantum's plan more or less. 3. Value Investing style. Which just means a good, solid and focused investment style. This is good too. 4. Backed by a good pedigree person. So, another good thing. I will still wait for the actual NFO, and look into the scheme information document about their workings. But overall, should be a very decent offering.

  5. He may not personally manage the money but the style of management should be influenced by him. I am looking forward to see how the PPFAS Long Term Value Fund fares.
    They claim they will not launch any more schemes. Should be interesting.

  6. Dear Krishna, in this case, respected Parag Parikh is not going to manage our money. Please take note of this & make an informed choice.

    Thanks

    Ashal

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