PPFAS Punches Above Its Weight to Have First Active Fund at ₹1 Trillion

Hitting the Fast Lane

- ABHISHEK KUMAR

India's largest mutual fund (MF) players are typically backed by major banks, but the country's biggest actively-managed scheme comes from a relatively lesser-known fund house outside mainstream market circles.

The Parag Parikh Flexi Cap Fund, the flagship scheme of Parag Parikh Financial Advisory Services (PPFAS) MF, recently became the first active scheme to cross ₹1 trillion in assets under management (AUM).

What explains PPFAS MF's ascent? Experts point to the fund's consistent performance and a distinctive investment approach. The Parag Parikh Flexi Cap Fund is the only scheme in its category with a mandate to invest up to 35 per cent of its corpus in international stocks, while also retaining the flexibility to take large cash positions.

"This differentiation has been an advantage, especially during periods of market turmoil. For example, in 2016, the impact of demonetisation was limited for us due to international exposure. High cash holdings helped us during the 2018 turmoil and the pandemic correction in 2020," said Neil Parikh (pictured), who took over as chief executive officer (CEO) in 2015 after the death of his father, Parag Parikh, in a car accident in the US.