The PPFAS AMC or the PPFAS Asset Management has been actively promoting the Parag Parikh Services of Financial Advisory Pvt. Ltd – a boutique firm dedicated to investment advisory. The fund was incorporated in 1992 and is now one of the earliest providers of the Indian SEBI Registered Portfolio Management Service (PMS).
Their mission is to help the client achieve their long-term financial goals via prudent fund management. The company is guided by the ‘Law Of The Farm’ which states that productivity takes time and if one chooses to hasten the process. it will end up being counterproductive.
“We believe that investing should not be a complicated process. Hence we strive for simplicity in our scheme design, investing process, and operations. While investing involves individuals, we give more importance to the process of investing as compared to the personalities.”
3 Reasons Why Parag Parikh Mutual Fund is Best For Long-Term Wealth
Here are 3 reasons why an investor must invest in Parag Parikh long term equity fund growth –
- Time-tested
The Parag Parikh long term equity fund growth is a scheme based on the time-tested value of an investment that includes companies that have low debt, investor-friendly management, high cash flows, etc.
- Multifunctional – Parag Parikh Long Term Equity Fund Growth
The Parag Parikh long term equity fund growth is a multifunctional gadget that includes multiple tools to use. An investor can easily invest in Indian and foreign companies irrespective of market capitalization and sectors through the Parag Parikh mutual fund.
- Tax-efficient – Parag Parikh Long Term Equity Fund Growth
Stating facts, about 65% of the corpus is invested in Indian equities. This means the investors of the Parag Parikh long term equity fund growth can enjoy similar tax benefits as compared to other Indian equity mutual fund schemes, despite having the investment freedom in foreign stocks.
Who Should Invest in the Parag Parikh Flexi Cap Mutual Fund?
In simple words, the scheme is broadly suitable and best for ‘true’ long-term investors. Having said this, it is only true if you are an investor;
- Who is well aware of the perils that are involved in instant gratification
- For whom the term ‘long term’ equals to at least a minimum period of five years
- Who is rather excited and not repelled if and when the prices of the stock are high and the valuations are low
- For whom the stock purchase is no less than purchasing a business
Note – The Parag Parikh mutual fund follows a simple process of investment, does not pay mere lip service to value investing, and will often mean purchasing businesses through a painful, unloved, yet tiring phase. Having said that, although tedious, each scheme will blossom at different points, therefore with the help of the extended periods, the damage will not be felt.
The fund manager will anyhow try their best to profit from the multiple cognitive and emotional biases that are displayed by the companies and market participants. In other words, even with the dissection of financial statements, there will be a presence of human emotions.
Having strong conviction in the compounding principles, the scheme will try to offer the investors a ‘Growth Option” and not the ‘Dividend Option.’
Considering investing in the Parag Parikh mutual fund would equate to an open-ended scheme, and its ability to invest during bear markets depends on the investor’s behaviour. This means, if the investors desert the scheme, then there are chances for the prices to drop low and naturally constrain the ability to make investments.
On the Flip Side: Who Should Avoid Investing In Parag Parikh Mutual Fund?
You, as an investor, must skip investing in the Parag Parikh mutual fund if;
- You track the mutual fund every day as Net Asset Values
- For you, the term ‘Long Term” is only a year or two
- Investing for you should be ‘exciting’
- You believe that the fund managers are, in fact, magicians
- You prefer investing in mutual funds that are complex rather than the simple ones
- You fear the volatility of the stock market
- You believe that you can time the market
- Depend on the periodic income as mutual fund dividends
If either of the above said sounds like you, it is likely that you must avoid investing in the Parag Parikh Mutual Fund.
To Sum It All Up:
Although the Parag Parikh mutual fund has its pros and cons attached, being an equity mutual fund scheme cannot guarantee the number of returns that an investor can guarantee.
Nevertheless, having said that, what is assured of is that they can help manage your money prudently to help you inch closer to achieving your long-term financial goals.
FAQs: Why is Parag Parikh Mutual Fund the Best to Build Long-Term Wealth?
- What is Parag Parikh Mutual Fund’s mission?
Their mission is to help the client achieve their long-term financial goals via prudent fund management. The company is guided by the ‘Law Of The Farm’ which states that productivity takes time and if one chooses to hasten the process. it will end up being counterproductive.
- How do I know if the Parag Parikh Mutual Fund is suitable for me?
The Parag Parikh scheme is broadly suitable for ‘true’ long-term investors. Having said this, it is only true if you are an investor;
- Who is well aware of the perils that are involved in instant gratification
- For whom the term ‘long term’ equals to at least a minimum period of five years
- Who is rather excited and not repelled if and when the prices of the stock are high and the valuations are low
- For whom the stock purchase is no less than purchasing a business
- Is Parag Parikh Mutual Fund good for SIP?
Keeping the risk profile in mind, the investment funds are good that can be added to your future SIPs in Parag Parikh Flexi Cap and UTI Nifty Index Fund.
- How can I achieve Rs 7 crore at 12% per annum?
With 18,000 per month and an increase in the SIP amount by 10% every year after 25 years, an investor can achieve their goal of Rs 7crore at a 12% return per annum.
