PPFAS Mutual Fund or (HDFC Top 200 & Franklin India blue chip).

POSTED BY Krishna Kishore Appala ON April 28, 2013 7:34 pm COMMENTS (3)

Dear Masters,

Hope you are enjoying the Sunday evening.

My Query is : 

I am doing monthly SIP’s of 20k divided as:

Franklin India Blue chip : 5000 (Total Accumilated 53k, one year old SIP)

HDFC Top 200 : 5000 (Total Accumilated 70k, One year old SIP).

Quantum Tax Fund : 10000 (Accumilated 70k).

Recently my salary got hiked and will recieve another 10k starting from next month.

As I am single and don’t have any obligations, I want to save as much as I can and so decided to invest 10k without touching it.

Now, day before yeterday I met with PPFAS team in there investors meet in Bangalore. I grew up by studing Mr. Parikh sir’s books and gaining from his videos.

Also I was disappointed when SEBI changed the entry amount of PMS to 25L from 5L, only because this move will take some more time for me to establish my relationship with PPFAS. Lucky enough they are ready to launch the Mutual fund.

So, my main question is:

As many of you always suggest, 2 funds will be sufficient and will do and Over diversification sometimes hurts.

I would like to Redeem Franklin India Blue chip and HDFC Top 200 (both are not Direct option) and invest only Quantum Tax fund and PPFAS Fund (Both are Direct option).

1) Is my decision wise to redeem all the holdings of 2 funds and buy PPFAS on NFO (units worth nearly 1.25 Lakhs) and then continue monthly SIP of :

PPFAS Fund : 20000.

Quantum Tax Fund : 10000.

Or 

2) Leave the investments in HDFC T200 and Franklin untouched for some time (till one year, so that we can skip the Exit load of 1% and STCG) . And the start a SIP with PPFAS as : PPFAS Fund : 20000

Quantum Tax Fund : 10000.

Please let me know my best course of action.

Have a Great day 🙂

Regards

Krishna Kishore Appala

3 replies on this article “PPFAS Mutual Fund or (HDFC Top 200 & Franklin India blue chip).”

  1. Krishna Kishore Appala says:

    Dear Ashal and Pattu sir, Thanks a lot for the response.

    @ Pattu sir : Yes, I agree as the disclosure says about past performance may not have any bearing on the new fund. But, apart from my immeasurable respect towards Legendary Parikh sir, the one that attracted me the most is, there decision to close there most successful PMS business and concentrate only on single fund.

    But as you both suggested, will start with additional 10k first and later will decide.

    Regards
    Krishna Kishore Appala

  2. Dear Kishore, in my opinion, test the water with the additional 10K you want to invest. Later on after 1Y or 2Y, you may decide on your own.

    Thanks

    Ashal

  3. Kishore,

    best to invest some amount of money in PPFAS fund without abandoning your existing funds

    Remember what their website says:

    Past performance of the Sponsor, PPFAS Limited may not have any bearing on the performance of PPFAS Long Term Value Fund.

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