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PPFAS Mutual Fund :: Investmemt Process : Parag Parikh Long Term Value Fund

Investment Process - Parag Parikh Long Term Value Fund

Objective
The investment objective of the Scheme is to seek to generate long-term capital growth from an actively managed portfolio primarily of equity and Equity Related Securities.

Scheme shall invest in Indian equities, foreign equities and related instruments and debt securities.

Buying securities at a discount to intrinsic value will help to create value for investors. Our investment philosophy is to invest in such value stocks.

Long Term refers to an investment horizon of 5 years and more.

Process
Identifying Investments
  • Review 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 evaluation 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
Sr No Parameter Guideline
1 Ideal Market Cap Any Market Cap
2 Max Cash in Portfolio Opportunistic retention or use of Cash (upto 35%)
3 Max International Limits 35% of overall portfolio
4 Max Single Position Size 10% as per SEBI Guidelines. This is based on cost price and not market value.
5 No of Companies held 20-25 (in exceptional cases 25+)
6 Benchmark NIFTY 500
7 Our Performance Focus Focus on absolute returns as well as beating the benchmark over the long term

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