Parag Parikh Long Term Equity Fund completes five years

Parag Parikh Long Term Equity Fund, the flagship equity mutual fund scheme of PPFAS Mutual Fund, has completed five years on May 28. Currently, the scheme has around 22,000 investors and manages assets worth Rs 1,050 crore. The scheme has generated 18.88 per cent return since inception.

The multicap scheme is not bound by any market-capitalisation or sectoral restrictions. It can also participate in special situations/arbitrage opportunities arising in India. It also has the freedom to invest in stocks listed overseas.

"I thank everyone who has chosen our scheme and supported us during this journey. I think first five years was a start-up phase for us. We hope our track record will spur more investors and like-minded partners to associate with us," said Neil Parag Parikh, Chairman and CEO, PPFAS Mutual Fund.


He also said that the share of distributor recommended assets have increased steadily from 2 per cent to 20 per cent, since the scheme's inception. The fund house also aims to increase their penetration with the help of a mobile app, PPFAS SelfInvest.

"It has been a satisfactory journey overall. We achieved the net worth criteria of Rs 50 crore as mandated by Sebi. We also reduced our expense ratio three times in the year gone by now. It stands at 1.50 per cent for the direct and 2 per cent for the regular plan," Parikh said.

The fund house has also launched its second scheme, Parag Parikh Liquid Fund recently. This open-ended scheme aims to serve as a platform to help investors initiate investments into Parag Parikh Long Term Equity Fund through the Systematic Transfer Plan ( STP) route.