Now Reading: PPFAS CIO Rajeev Thakkar: No FD-like returns in equities
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PPFAS CIO Rajeev Thakkar: No FD-like returns in equities
PPFAS Asset Management CIO Rajeev Thakkar said investors who want guaranteed returns like a bank fixed deposit should simply make an FD, as equity returns come with unavoidable volatility. He made the…
The Story in Brief
PPFAS Asset Management CIO Rajeev Thakkar said investors who want guaranteed returns like a bank fixed deposit should simply make an FD, as equity returns come with unavoidable volatility. He made the remark amid scrutiny of the Parag Parikh Flexi Cap Fund's recent underperformance. Thakkar said periods of market weakness are not signs that equity investing has stopped working. The fund's cash allocation has fallen from about 25% to 14-15% as valuations moderated. He also dismissed the argument that the fund's large size is behind its underperformance, adding that PPFAS continues to favour diversified technology companies over pure-play AI stocks and focuses on valuations over chasing popular themes.
The Indian Opinion
The narrative that equity mutual funds have failed because they are underperforming fixed deposits misses the point. Investors who bought into the flexi-cap fund during the 2024 euphoria are now learning that volatility is the price of potential long-term gains, not a bug. Thakkar's frankness is refreshing, but the real test will come when the market cycle turns: will the fund's cash allocation continue to fall, and will its value picks finally outperform the broader indices? That is the number to watch.
Source: businesstoday.in
This story was synthesised by AI from the source linked above.
