Parag Parikh Flexi Cap Fund to reopen for lumpsum investments from March 15

Parag Parikh Flexi Cap Fund will reopen for transactions from next week, informed Rajeev Thakkar, CIO & Director of PPFAS Mutual Fund. PPFAS Mutual Fund stopped accepting lumpsum money after Sebi asked fund houses investing in overseas stocks to stop accepting money after the industry breached the overall limit of $7 billion set by RBI.

Parag Parikh Flexi Cap Fund invests around 30% in overseas stocks, according to Value Research.

“As of now, we have no visibility on if / when and by how much the limit for overseas investments will be revised. As I write today, there is a conflict going on between Russia and Ukraine, Crude Oil prices have risen and the Indian Rupee has fallen somewhat. If and when the limits are increased, and if it is of a relatively small amount, the same will get exhausted soon. In such a scenario, having funds readily available will be advantageous rather than opening the scheme after the limit increase only to see the industry wide cap get breached again,” said Thakkar.


“While we wish for an early increase in the overseas investment limit, considering the current scenario, an early increase may not come by. We have been getting feedback from investors that they would like to benefit from lower stock prices and invest in Parag Parikh Flexi Cap Fund. Also, various investors have registered their SIPs through different platforms where the back-end for each differs. This has caused confusion among investors and partners regarding the status of their investments in Parag Parikh Flexi Cap Fund,” added Thakkar.

Rajeev Thakkar said, “we will be opening up Parag Parikh Flexi Cap Fund for acceptance of transactions with effect from Tuesday, March 15, 2022.”

He said there is no change in the overseas investment limit as of now. Because of this, fresh net inflows will have to be invested in India. It is expected that over time, the weightage of foreign stocks in Parag Parikh Flexi Cap Fund will come down.” As and when overseas investment limits are increased, we will rebalance the portfolio as per the then prevailing situation and valuations.”

As of now, investors who wish to have a higher weightage to foreign stocks will have to use the individual limits under the Liberalised Remittance Scheme (LRS) of the RBI to invest in overseas stocks / mutual funds, said Thakkar.