Latest news with #PPFASMutualFund
Mint
6 days ago
- Business
- Mint
Parag Parikh Mutual Fund's Rajeev Thakkar turns to debt: What's driving the shift in his personal portfolio?
Rajeev Thakkar, chief investment officer of PPFAS Mutual Fund (Parag Parikh Financial Advisory Services), oversees assets exceeding ₹1 trillion. Thakkar, 52, has built a solid track record over the years, with the Parag Parikh Flexicap Fund becoming the largest fund in its category. Incidentally, this is also the fund that Thakkar uses for his own equity investments. In this interaction with Mint for the 'Guru Portfolio series', Thakkar shares how he manages his personal investment portfolio and why his equity allocation has reduced. How has your personal investing and portfolio evolved over the past five years? Over the past five years, my portfolio has seen a shift, especially in the last one to two years. We've been cautious as a fund house, largely due to elevated valuations in the market, and this cautious approach has reflected in my personal investments as well. Most of my investments over the past 18–24 months have been in hybrid and arbitrage funds. Given my historically high exposure to equities and the fact that now am in my 50s, I have started rebalancing by allocating more to hybrids and arbitrage products. Also Read: What makes Mirae Asset's Swarup Mohanty paranoid about his retirement corpus Why have you taken a more cautious investment approach recently? Given that valuations are elevated, while stocks may deliver slightly better returns than bonds, I have opted for a more balanced approach. Within hybrids, I have allocated to a dynamic asset allocation fund. It also offers a long-term capital gains tax benefit: if the holding period is more than 24 months, capital gains are taxed at a flat 12.5%. What does your asset allocation look like? On debt allocation, it has increased significantly. It was 4-5% around 2020, but has now grown to around 12-13%. If I include the contingency and retirement funds, the fixed income component moves closer to 20%. Overall, there's been a clear rise in allocations toward hybrids and debt instruments. Gold has largely been in the form of jewellery. I haven't had explicit exposure to gold, but on auspicious days, some buying and some gifting happen for ceremonial reasons. The balance 80% is still in equities. Also Read: How Capitalmind's Deepak Shenoy covered shortfall in his son's education goalWhat did your portfolio look like five years ago? Can you give some context? Five years ago, debt was very limited. That period— around March to May 2020—coincided with the covid lows. Valuations were extremely attractive then, and even some of my debt allocation was tactically moved into equities. At that time, the portfolio was heavily tilted towards equities. How heavy was the equity allocation back then? It was quite high—equity allocation could have been around 95%. How has your portfolio performed? It has delivered 14% returns over the past year and 29% annualized returns over a five-year period. What is the current split between large-cap, mid-cap, and small-cap stocks in your equity portfolio? As a fund manager, I have publicly stated that valuations in the small- and mid-cap segments have generally been more elevated compared to large-cap companies. Because of this, the exposure to mid- and small-cap stocks in my equity portfolio, which is through the flexicap fund, is currently in the single digits (4%). The bulk of the fund's portfolio—60%—is invested in large-cap stocks. About 10% is in international stocks, and the balance is in cash. Also Read: Inside Edelweiss MF CEO Radhika Gupta's plan to build over ₹10-crore—and how she's investing to get there How has your international exposure changed? This allocation has been coming down over the years due to the RBI-imposed limits on mutual fund investments abroad. Recently, Parag Parikh Financial Services (PPFAS) set up a subsidiary in the Gift City, which will offer both inbound funds, as well as outbound funds for Indian residents to invest in global stocks. So, hopefully, I will be able to use that and invest some additional money internationally. What has been your approach to insurance? Now that my savings have built up adequately, there's no longer a need to continue term insurance coverage. I am in the last three years of my term cover. Even my health insurance coverage is slightly lower than the typical amount. Given this scenario, I've been building an emergency corpus—particularly for health or unexpected needs in post-retirement period—again through hybrids and arbitrage funds. How much coverage do you want to build for this post-retirement emergency fund? I have reached the basic target to meet my post-retirement lifestlyle needs. But I also need to build a post-retirement contingency fund as my personal medical cover is small in size. I have employer cover, but that would not come in handy in post-retirement period. For this emergency fund, which I am planning for health and other contingencies post-retirement, my goal is to accumulate a corpus of around ₹10 crore. How much is your family involved in investment decisions? My wife is also a finance professional working in the mutual fund industry, but is on the risk-management side. My family is very well aware of what is happening in my investment portfolio, but any investment decisions are largely left to me. My daughter, who is now 20, has also become a keen investor and manages a small portfolio of her own. Since a young age, she has been a regular at our annual general meetings with unitholders. She is an avid reader and also watches investment-related content we put out on YouTube regularly. She has already been to Berkshire Hathaway meetings multiple times, where she has had the opportunity to listen to investing greats such as Warren Buffet and Charlie Munger.
Economic Times
15-05-2025
- Business
- Economic Times
Mutual funds use inflows to stuff another Rs 17,300 crore in their cash bag
Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Amid rise in equity markets and slowing equity inflows, the cash pile of mutual funds has increased by Rs 17,361 crore on a monthly basis to Rs 2.23 lakh crore in April from Rs 2.05 lakh crore in cash allocation as a % of total AUM was 5.86% in March which went up to 6.12% in April. The total equity AUM in April was recorded at Rs 36.48 lakh the 44 fund houses, seven had over Rs 10,000 cash in their portfolios. SBI Mutual Fund , the largest fund house, had the highest cash allocation in its portfolio in April of Rs 38,043 crore which was 5.47% of the total Prudential Mutual Fund had Rs 30,591 crore cash in its portfolio, followed by HDFC Mutual Fund had Rs 25,697 crore cash in its portfolio which was 6.68% of the total AUM. PPFAS Mutual Fund had Rs 24,426 crore cash in its portfolio which was 23.57% of the total AUM. Axis Mutual Fund and Motilal Oswal Mutual Fund had Rs 15,826 crore and Rs 12,683 crore cash in their respective portfolios. Quant Mutual Fund had Rs 10,862 crore in its portfolio which was 13.05% of its total AUM. The fund house in its monthly release mentioned that, 'The high cash levels in most of the schemes have been deployed in select small caps and their portfolio remains tilted towards large and mega large caps and overall liquidity of the portfolio is good.'Kotak Mutual Fund had around Rs 6,804 crore cash in its portfolio, followed by Franklin Templeton Mutual Fund which had Rs 5,876 crore cash in its portfolio. Mirae Asset Mutual Fund had around Rs 1,591 crore cash in its portfolio which was 1.06% of the total Mutual Fund had Rs 1,055 crore cash in its portfolio, followed by Mahindra Manulife Mutual Fund which had Rs 850 crore cash in its Bhattacharya of Edelweiss Mutual Fund told ET Now that the rally in the market which has happened from roughly about Jan, Feb, mid to now, broadly reflects coming out of macro uncertainty and still kind of lower than all-time highs.'We have held very little cash in our portfolios. But we think that the macro-based rally is broadly done. Going forward, it will be closely related with regards to earnings estimates coming back and forth which we think will take a couple of quarters more, broadly by the second half of fiscal year 26 when earnings start to kick in gear,' he 21 AMCs had less than Rs 1,000 crore cash in its portfolio in the said period, of which six had less than Rs 100 crore cash including two AMCs which had less than Rs 10 crore cash in their on cash as a percentage of AUM, PPFAS Mutual Fund had 23.57% cash as a percentage of AUM, followed by Motilal Oswal Mutual Fund which had 14.50% cash as a percentage of cash in Quant Mutual Fund's portfolio was 13.05% as a percentage of AUM. SBI Mutual Fund had the highest equity AUM of Rs 6.57 lakh crore in April, followed by ICICI Prudential Mutual Fund and HDFC Mutual Fund which had Rs 4.02 lakh crore and Rs 3.59 lakh crore equity AUM managers are allowed to keep a part of their portfolio in cash to meet events like redemptions or make investments when they see a possible opportunity in the is experiencing high volatility due to global cues such as geo politics and trade tariffs, slowing earnings cycles, valuations coming off from highs etc. and the valuations have cooled-off in the last few months, although still remains high, according to a release by ICICI Prudential Mutual fund house believes that strong fundamentals coupled with high valuations creates a strong case for investing in Hybrid and Multi asset allocation schemes and they prefer large-caps over mid and smallcap schemes due to reasonable valuations plus possibility of FPIs making a comeback which may result in outperformance.: Recommendations, suggestions, views, and opinions given by experts are their own. These do not represent the views of the Economic Times)
Time of India
15-05-2025
- Business
- Time of India
Mutual funds use inflows to stuff another Rs 17,300 crore in their cash bag
Live Events Amid rise in equity markets and slowing equity inflows, the cash pile of mutual funds has increased by Rs 17,361 crore on a monthly basis to Rs 2.23 lakh crore in April from Rs 2.05 lakh crore in cash allocation as a % of total AUM was 5.86% in March which went up to 6.12% in April. The total equity AUM in April was recorded at Rs 36.48 lakh the 44 fund houses, seven had over Rs 10,000 cash in their portfolios. SBI Mutual Fund , the largest fund house, had the highest cash allocation in its portfolio in April of Rs 38,043 crore which was 5.47% of the total Prudential Mutual Fund had Rs 30,591 crore cash in its portfolio, followed by HDFC Mutual Fund had Rs 25,697 crore cash in its portfolio which was 6.68% of the total AUM. PPFAS Mutual Fund had Rs 24,426 crore cash in its portfolio which was 23.57% of the total AUM. Axis Mutual Fund and Motilal Oswal Mutual Fund had Rs 15,826 crore and Rs 12,683 crore cash in their respective portfolios. Quant Mutual Fund had Rs 10,862 crore in its portfolio which was 13.05% of its total AUM. The fund house in its monthly release mentioned that, 'The high cash levels in most of the schemes have been deployed in select small caps and their portfolio remains tilted towards large and mega large caps and overall liquidity of the portfolio is good.'Kotak Mutual Fund had around Rs 6,804 crore cash in its portfolio, followed by Franklin Templeton Mutual Fund which had Rs 5,876 crore cash in its portfolio. Mirae Asset Mutual Fund had around Rs 1,591 crore cash in its portfolio which was 1.06% of the total Mutual Fund had Rs 1,055 crore cash in its portfolio, followed by Mahindra Manulife Mutual Fund which had Rs 850 crore cash in its Bhattacharya of Edelweiss Mutual Fund told ET Now that the rally in the market which has happened from roughly about Jan, Feb, mid to now, broadly reflects coming out of macro uncertainty and still kind of lower than all-time highs.'We have held very little cash in our portfolios. But we think that the macro-based rally is broadly done. Going forward, it will be closely related with regards to earnings estimates coming back and forth which we think will take a couple of quarters more, broadly by the second half of fiscal year 26 when earnings start to kick in gear,' he 21 AMCs had less than Rs 1,000 crore cash in its portfolio in the said period, of which six had less than Rs 100 crore cash including two AMCs which had less than Rs 10 crore cash in their on cash as a percentage of AUM, PPFAS Mutual Fund had 23.57% cash as a percentage of AUM, followed by Motilal Oswal Mutual Fund which had 14.50% cash as a percentage of cash in Quant Mutual Fund's portfolio was 13.05% as a percentage of AUM. SBI Mutual Fund had the highest equity AUM of Rs 6.57 lakh crore in April, followed by ICICI Prudential Mutual Fund and HDFC Mutual Fund which had Rs 4.02 lakh crore and Rs 3.59 lakh crore equity AUM managers are allowed to keep a part of their portfolio in cash to meet events like redemptions or make investments when they see a possible opportunity in the is experiencing high volatility due to global cues such as geo politics and trade tariffs, slowing earnings cycles, valuations coming off from highs etc. and the valuations have cooled-off in the last few months, although still remains high, according to a release by ICICI Prudential Mutual fund house believes that strong fundamentals coupled with high valuations creates a strong case for investing in Hybrid and Multi asset allocation schemes and they prefer large-caps over mid and smallcap schemes due to reasonable valuations plus possibility of FPIs making a comeback which may result in outperformance.: Recommendations, suggestions, views, and opinions given by experts are their own. These do not represent the views of the Economic Times)
