The fund has exposure to overseas securities too – Google C Class is one of its major holdings
Parag Parikh Financial Advisory Services seems to be focusing on Kerala’s NRI community for its long-term value fund, considering its response in some of the southern States.
(PLTVF) is an open-ended, equity-oriented scheme with flexibility to invest a minimum of 65 per cent in Indian equities and up to 35 per cent in overseas equity securities and domestic debt/money market securities. It was opened on May 28, 2013 and has exposure in Google.
The Long Term Value Fund is ideal for those looking for more than five years of investment, Parag Parikh, founder and Chairman, PPFAS, said.
Confident of impact
Looking at the overwhelming response from Chennai and Bengaluru, he said the company would like to build a track record.
The combined investment of the promoters, directors and staff of PPFAS in the fund comes to around 9 per cent of the value. According to him, South Indian investors (both resident and NRIs) have been very positive towards long-term value funds and prefer a conservative style of fund management. The company is confident its approach, which focuses on capital preservation and providing reasonable, inflation-beating returns, would appeal to them.
A stock market veteran, Parikh, who was in Kochi to popularise the fund, said people today are scared of investing in equity markets because of their volatility. Investors would find it difficult in understanding the behaviour of stock markets. For them, he suggested mutual funds as an investment vehicle to provide long-term returns. The MF industry, according to him, would do well in India but the challenge is to get educated and financially literate investors.
With an investor base of more than 3,500, the fund has assets of nearly ₹600 crore as on February.
PPFAS Long Term Value Fund is the first mutual fund to organise an AGM. The latest NAV of the regular plan is ₹16.30
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