- Come January, Parag Parikh Mutual Fund will be launching a new large-cap scheme that will track the Nifty 100 index, with a twist
- Meanwhile, the MF has been increasing cash holdings in its popular flexi-cap scheme due to elevated entry valuations
- Detractors have been quick to point out the flaw: if large-cap valuations are deemed elevated for flexi-cap, how are they okay for the large-cap scheme?
- The latest move risks eroding investor perception of Parag Parikh MF as a truly value and active investor
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“We just launched one large-cap fund and got enough brickbats. Any more and we’ll probably get tomatoes thrown at us.”
This repartee by Neil Parikh, chief executive of Parag Parikh Financial Advisory Services (PPFAS) Fund House, at its annual unitholders’ meeting on 22 November was only half in jest. Offered in response to a question on new fund launches, it betrayed more than a back-foot play necessitated by a seemingly routine decision. All because of the exacting standards the fund house with a cult-like following is held up to.
The harsh spotlight is thanks to a new scheme, Parag Parikh Large Cap, to be launched in January 2026—just the seventh from the fund house in its over 12 years. “This is nothing but an AUM [assets under management] management solution,” said a post on social-media platform Reddit, adding that it was a clear departure from the philosophy that prioritised investor simplicity over asset gathering.
Now, why would this be a problem when the Indian mutual-fund industry is
Because PPFAS Mutual Fund is, well, different. Or at least it’s expected to be. Right from its inception by famed value investor, the late Parag Parikh, the fund house has had a philosophy of not launching many schemes. “This has given it the aura of being an investor-focused asset manager rather than a fee-chasing asset gatherer,” said a former fund manager at another fund house. They and two others declined to be named as they did not want to be seen commenting on the matter.
From just the flagship flexicap scheme in 2013 to two more equity-oriented and three debt-oriented schemes, the offerings so far have been around specific investor needs. Most have delivered strong returns.
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