PPFAS Asset Management Private Ltd. is the asset manager of PPFAS Mutual Fund, established back in 2012. The AMC is registered as a trust under the Indian Trust Act, 1882. It is registered with SEBI vide registration code MF/069/12.

As of March 2022, the AMC offers more than six schemes and has an asset under management of Rs. 23113.6 Crore.

PPFAS AMC abides by the “Law of the Farm”. The law relates to farming, where a farmer can only reap fruitful produce slowly and steadily while practising with effort and discipline. The company has relatively prolonged holding periods, a reflection of this law.

The AMC prides itself of having a different and unique approach to asset management than other companies.

For instance, the company only offers 1 equity scheme. It believes that they can invest in a plethora of areas through this single product. They refrain from launching more schemes as it might create confusion among clients and become perplexing when choosing a fund to invest in.

Secondly, it does not have a sales team. The company does not subscribe to attracting investors by heavily promoting its products. It has a small team of Relationship Managers who seek to establish a robust and long-term relation with the clients. They do not conclude their services once an investor completes the purchase. The official will clear any queries and doubts that their clients have, anytime.

The company boasts of its investment management team and maintains that their approach to performance and asset management is the ideal way to market and sell their products.

Thirdly, it does not utilise the modern factors like algorithms, technical analysis, and momentum to curate a portfolio. Instead, the company uses age-old factors like low debt, cash flow, etc. PPFAS does not seek to attract investors that look for fund managers who have an aggressive approach to the market.

Fourthly, the mutual fund does not accept one-time investments during bullish times. It says that investing during such time may return high profits but it can also backfire.

Fifthly, PPFAS AMC believes that the interest of clients should be similar to those of their employees and management. Hence, their workforce also invests a considerable amount of their investable surplus in the company’s equity fund.

The only two PPFAS Mutual Funds available are:

I. Parag Parikh Long Term Equity Fund

Parag Parikh Long Term Equity Fund is an open-ended equity fund for those looking for an investment horizon of at least 5 years.

The scheme was launched in 24 May 2013 and has an asset under management of Rs. 1,896.65 Crore as of 31 May 2019.

Industry allocation

• 15.28% in banks
• 14.36% in internet and technology
• 13.44% in arbitrage and special situation
• 10.17% in auto
• 8.63% in debt and money market instruments
• 7.84% in finance
• 7.29% in software
• 5.57% in auto ancillaries
• 5.25% in pharmaceuticals
• 2.77% in consumer non-durables
• 2.69% in packaged foods
• 2.27% in consumer services
• 1.77% in industrial conglomerates
• 1.46% in hotels, resorts, etc.
• 1.21% in gas

Portfolio disclosure

• Core equity

HDFC Bank Ltd. holds the majority portion of the net assets with 8.57%. Bajaj Holdings & Investment Ltd. has 6.82%, Hero Motocorp Ltd. 5.12%, Persistent Systems Ltd. 4.62%, and Axis Bank Ltd. 3.58%.

Other firms with the core equity of this scheme are ICICI Bank Ltd., Indraprastha Gas Ltd., Zydus Wellness Ltd., Sun Pharmaceuticals Industries Ltd., etc.

• Arbitrage

4.74% of the net assets belong to HDFC, 2.41% by Tata Steel, 2.35% by Maruti Suzuki India Ltd., 1.85% by Century Textiles Ltd., 1.46% by State Bank Of India Ltd., and 0.63% by Yes Bank Ltd.

• Overseas securities, IDRS and ADRs

Alphabet Inc. holds 9.33% of the net assets while 5.05% goes towards Suzuki Motor Corp, 5.03% to Facebook Inc., 2.69% to Nestle SA, 2.27% to Amazon Inc., and 1.77 to 3M Co.

• <Debt and money market instruments

6.57% of the net assets of the Parag Parikh Long Term Equity Fund are invested in TREPS including cash and cash equivalent.

II. Parag Parikh Liquid Fund

Parag Parikh Liquid Fund is an open-ended liquid scheme offering low risk and high liquidity by investing in debt and money market instruments.

This scheme was launched in 11 May 2008 and has an asset under management worth Rs. 268.20 Crore as of 31 May 2019.

As of 31 May 2019, the net asset value of this scheme is:

• Growth – Rs. 1068.40 through direct plan and Rs. 1067.15 through regular plan.
• Daily dividend – Rs. 1000.20 through direct and regular plan.
• Weekly dividend – Rs. 1001.65 through direct plan and Rs. 1001.64 through regular plan.
• Monthly dividend – Rs. 1003.65 through direct plan and Rs. 1003.64 through regular plan.

Asset allocation

59.16% of the net assets are invested in treasury bills, 25.97% in collateralized borrowing and lending obligation (CBLO), fixed deposit, net receivables, net payables, 7.46% in government securities, and 7.41% in commercial papers.

Portfolio disclosure

• Debt and money market instruments

Sovereign 91 days treasury bills have the majority potion of the nest assets in this section. 182 days and 364 days greasy bills are the other instruments.

Government securities

Sovereign 7.86% RAJASTHAN SDL and 07.28% GOVT STOCK are the two government securities, each with 3.73% net assets.

• Commercial papers and certificate of deposits

A1+ commercial papers and certificate of deposits belong to Indian Oil Corporation Ltd., HDFC Ltd., NTPC LTD., and NABARD.

• TREPS and other receivables and payables

25.22% of the nets assets of Parag Parikh Liquid Fund is invested in TREPS including net receivables/payables.

• Fixed deposits

0.38% of the net assets are invested in 7.40% HDFC fixed deposit and 0.37% in 6.25% HDFC fixed deposit.

PPFAS Asset Management Private Ltd. is a wholly-owned subsidiary of Parag Parikh Financial Advisory Services Private Ltd. (PPFAS). PPFAS provides portfolio management and financial advisory services.

Key Information