Parag Parikh Long Term Equity Fund

We prefer to concentrate on stock-picking rather than forecast currency movements. However, we reduce the risk of our investors losing due to sharp currency appreciation of the Indian rupee, by hedging approximately 80% of our foreign exposure through Currency Contracts..

As the Forward rate of the Indian Rupee is usually at a premium to the Spot Rate, our investors often earn an additional yield (Currently 5-6% per annum), irrespective of how the underlying stocks perform.

Please note: This yield may or may not sustain in the future, as it depends on factors like interest rate & inflation differentials between two currencies, which cannot be predicted with much accuracy.

First of all, we prefer countries where stockmarkets are well-developed, good governance is in place, financial statements are prepared in English and stockmarkets are liquid.

Within these countries, we seek companies which are large, have operations in multiple countries and are reasonably valued.

Currently, we are focusing on companies listed mainly in the USA as we have access to a large universe of companies which possess all these attributes.

Yes. As 65% of the portfolio will be invested in Indian companies, our investors will pay a lower rate of tax, as shown in the table alongside.

% Holding of Indian Equities

Particulars	65% and above	Less than 65%
LTCG Tax	10% without indexation	20% after indexation
Qualifying period	One year	Three years