PPFAS – SCHEME INFORMATION DOCUMENT seems very interesting.

POSTED BY sunil ON April 18, 2013 12:52 pm COMMENTS (6)

Guys,

I have just been introduced to this PPFAS Mutual Fund going to go Live in a month or so. I have just started to read the offer document and was stunned to see their asset allocation across various products…

They invest in

Indian Equity, Foreigh Equity, Dervatives, Short Selling, Debt Products, Swaps, Forwards to name a few important assets.

I feel no other Fund in the market has this type of investment strategy….

I totally agree that this scenario can lead to mre risk, but can we think it as a pot full of diversifications???

Any take on this??? For me it looks awesome. Awesome not to invest my 100% money, but for investing upto 5% of my money in this Fund.

Any Views???

6 replies on this article “PPFAS – SCHEME INFORMATION DOCUMENT seems very interesting.”

  1. Dear Sunil, I’m agree here with dear Ramesh, either full throttle from day one in this fund or not at all. If you believe that the same magic of legendary Parag Parikh can be created in this fund, invest max. to reap the benefit. if you do have doubt, do not invest at all. Sit on the side lines & let them perform.

    thanks

    Ashal

  2. Ramesh says:

    By the way, even Templeton India Equity Income does that (65% Indian, 35% foreign).
    Shorting, Swapping, Forwards do not appear to be a very often used strategy (but cannot really say).

  3. sunil says:

    Yes Manish, during a period that is swapping across 4-5 years i am expecting they will be using them….

    Ramesh, Yes i agree, but i am hesitant to test the depth with both legs IN… hence the 5% … may be i will be comfortable to play with only that amount. Once i see them over a period of time, i might get confidence to wander more into the Fund…

    My personal opinion.. 🙂

  4. Sunil

    Just keep one thing in Mind . The things mentioned are possible avenues if required. In the scheme document AMC;s make sure they put everything , so that in future they can invest in those things if they feel a need of it .

    Just because its in scheme document does not mean that from day 1 , they will start using of of them . I personally feel , its mainly going to be plain stocks , debt portfolio and Cash and then as and when situation demands they can use tools like Short Selling, Derivatives etc ! .

    However I personally feel , its a good option to invest provided their phylsophy and attitude. You can take a 5% exposure of your portfolio if you feel you are aligned with them.

    Manish

    1. Ramesh says:

      5% is meaningless.

      Either go this side or that side (a significant portion). Otherwise, wait and watch.

  5. Nothing wrong in giving it a try with a small investment. Many funds invest in 65% indian equity and international equity.

    Like they themselves state their reputation has no bearing on the performance of the fund.
    So I would expect it to give me reasonable returns over 10-15 years and not every year.

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