Now Reading: PPFAS CIO warns equity investors seeking FD-like certainty
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PPFAS CIO warns equity investors seeking FD-like certainty
PPFAS Asset Management CIO Rajeev Thakkar has told unitholders that investors seeking fixed-deposit-like certainty from equity investments should reconsider their expectations. "The only way to guarantee a bank FD return is to…
The Story in Brief
PPFAS Asset Management CIO Rajeev Thakkar has told unitholders that investors seeking fixed-deposit-like certainty from equity investments should reconsider their expectations. "The only way to guarantee a bank FD return is to make a bank FD," Thakkar said in a note, as he addressed concerns over the recent subdued performance of the Parag Parikh Flexi Cap Fund.
Thakkar pointed out that equity returns come with volatility and that the possibility of higher returns is tied to accepting that uncertainty. He noted that the fund's cash allocation, which had peaked at around 25% during market exuberance in 2024, has fallen to about 14-15% as valuations moderate in parts of the market. PPFAS expects to deploy more cash as attractive opportunities emerge.
The Indian Opinion
The narrative that mutual fund managers should beat bank FDs every quarter is lazy and ahistorical. Thakkar's note is a useful corrective, but the real test is whether PPFAS can put its 14-15% cash pile to work at sensible valuations, not just talk about opportunities. Investors who were happy with the fund's 25-30% years cannot now demand FD-like stability. The question for unitholders is simple: do you have a three-year horizon, or three months?
Sources (2): businesstoday.in, livemint.com
This story was synthesised by AI from the 2 sources linked above.
Updated: this story now draws on 2 sources.
