PPFAS Mutual Fund
Last Updated : Oct. 14, 2016, 9:39 a.m.
PPFAS Asset Management (PPFAS AMC) has been promoted by Parag Parikh Financial Advisory Services Pvt. Ltd. (PPFAS Ltd.), an exclusive investment advisory firm established in 1992. PPFAS Ltd. is known to be India's earliest SEBI Registered Portfolio Management Service (PMS) providers.
Past performance of the sponsor, PPFAS Limited, has no relevance on the expected performance of its scheme.
Are you looking for an Equity mutual fund house which manages your money using Value Investing Principles? Look for PPFAS Mutual Fund in that situation as it transcends into reality, keeping in view that the key stakeholders have invested a considerable portion of their equity investments in Parag Parikh Long Term Value Fund.
Parag Parikh Long Term Value Fund
PPFAS Mutual Fund has only one scheme in its offering which is known as Parag Parikh Long Term Value Fund.It is a diversified equity scheme where investments are not confined within the horizons of the sector, market capitalization, geography, etc. However, an average of 65% of its corpus will be invested in listed Indian equities, for the sake of deriving benefits from the favorable Capital Gains tax treatment granted to such schemes.
Plans Offered :
- Direct Plan (i.e., investments not routed through a distributor)
- Regular Plan
The Mutual Fund performance return for 1 year period of Parag Parikh Long Term Value Fund under Direct Plan is 15.34% & under Regular Plan is 14.70%.. It is available under Growth Option only. The expense ratio of such scheme is 2.22% with a recorded Assets Under Management is Rs. 687.45 crores.
Fund Managers take care of this scheme as per their own expertise level. Mr. Rajeev Thakkar diligently handles the domestic portion of the scheme whereas Mr. Raj Mehta is responsible for the 'fixed income' investment component.
The scheme is appropriate only for 'true' long-term investors only if they meet any of the following criteria:
- Who knows the risks involved in instant gratification
- For whom the term 'long-term' implies a minimum period of five years.
- Who gets excited instead of withdrawing away, when stock prices and valuations are low.
- For whom buying a stock is no different from buying a business.
Benchmark: Nifty 500
Entry Load : Not Applicable
Upfront commission shall be paid directly by the investor to the ARN Holder (AMFI registered Distributor) subject to the investors' evaluation of various factors including the service rendered by the ARN Holder.
Exit Load
Redemption
2.00 % is charged if the investment is redeemed on or before 365 days from the date of allotment of units
1.00 % is charged if the investment is redeemed after 365 days but on or before 730 days from the date of allotment of units.
No Exit Load will be borne by any investor if the investment is redeemed after 730 days from the date of allotment of units.
Switch
Not Applicable
Minimum Application Amount
- For New Purchase: Rs. 1,000 and in multiple of Re. 1 thereafter.
- For Additional Purchase: Rs. 1,000 and in multiple of Re. 1 thereafter.
- In context to monthly SIP , Rs. 1,000 and in multiple of Re. 1 thereafter.
- In context to quarterly SIP Rs. 3,000 and in multiple of Re. 1 thereafter.
Asset Allocation
Under normal conditions, the asset allocation (% of Net Assets) of the Scheme's portfolio will be as follows.
| Types of Instruments | Minimum allocations (% of net assets) | Maximum allocations (% of net assets) | Risk Profile |
|---|---|---|---|
| Equity and equity related instruments | 65 | 100 | Medium to high risk |
| Debt Securities, Money Market Securities | 0 | 35 | Low to medium risk |
| Foreign Equity and equity related instruments | 0 | 35 | Medium to high risk |
If investment in securitised debt is undertaken, then it shall not exceed 25% of the net asset of the scheme. From time to time, the Scheme may hold cash.
The Scheme may seek investment opportunity in the Foreign Securities (including ADR/ GDR/ foreign equity and equity related instruments), as per the guidelines issued by SEBI and RBI from time to time. Under normal conditions, exposure to foreign securities is dependent upon regulatory limits, which shall not be more than 35% of the Scheme's net assets.
In addition to the instruments prescribed in the table above, the Scheme may enter into repo/reverse repo as may be allowed by RBI. From time to time, the Scheme may hold cash. A certain portion of the net assets may be invested in the Collateralised Borrowing & Lending Obligations (CBLO) or repo.
In such situations where the asset allocation of the scheme should deviate from the ranges as prescribed in asset allocation table above, then the portfolio of the scheme will be rebalanced by the fund manager for the position reflected in the asset allocation table above within a maximum period of 30 working days from the date of said deviation.
Investment Style of Fund Manager
An active investment strategy is followed primarily by the fund manager which is based on fundamental research driven bottom- up stock selection approach. Since Investing requires disciplined risk management, the AMC would include safeguards attempting to control risks in the portfolio construction process. Such safeguards would involve reasonable diversification of the portfolio, which the AMC focuses to achieve by diversifying the investments over a range of industries, sectors and market capitalizations.
Investment Process of Parag Parikh Long Term Value Fund
The investment objective of the Scheme revolves around generating long-term capital growth from an actively managed portfolio consisting of equity and Equity-Related Securities.
The investment of the Scheme is made in Indian equities, foreign equities and related instruments and debt securities.
Buying securities at a discount to intrinsic value will support in creating value for the investors. The investment philosophy is to invest in such value stocks.
Here, Long Term implies an investment horizon of 5 years and more.
The following are the process about Parag Parikh Long Term Value Fund:
Recognizing Investments
- Reviewing public filings
- Periodic quantitative screens
- Tracking known businesses & industries
- Peer review of businesses
Fundamental Research
- Industry Analysis
- Competitive Analysis of business v/s Peers
- Review historical financial & operational data
- Qualitative assessment of business & management
Valuation Study
- Historical normal valuation
- Peer comparison
- Internal estimates & range of intrinsic value
Portfolio Construction
- Buy / Sell Discipline: Opportunistic
- Security Risk Control: Not more than 10% of portfolio in a single security (as per SEBI Guidelines)
- Follow portfolio guidelines
Portfolio Guidelines
| Parameter | Guideline |
|---|---|
| Ideal Market Cap | Any Market Cap |
| Max Cash in Portfolio | Opportunistic retention or use of Cash (upto 35%) |
| Max International Limits | 35% of overall portfolio |
| Max Single Position Size | 10% (as per SEBI Guidelines) |
| No of Companies held | 20-25 (in exceptional cases 25+) |
| Benchmark | NIFTY 500 |
| Our Performance Focus | Focus on absolute returns as well as beating the benchmark over the long term |
PPFAS Mutual Fund Online Login
Is paperwork giving you a headache? Try different way out. Go for an online medium for keeping a track record of all your portfolio investments under a single login.
But how to create PPFAS Mutual Fund Online Login? The answer is pretty clear. Simply fill up your details online and obtain your User ID and password, to get started experiencing seamless investing in PPFAS Asset Mutual Fund Schemes.