Rajeev Thakkar of PPFAS Mutual Fund dismisses recent dip in the Parag Parikh Flexi Cap Fund as a typical market cycle, emphasising a disciplined, valuation-led investment approach amid sustained optimism from industry analysts.
Rajeev Thakkar, chief investment officer and director at PPFAS Mutual Fund, said the recent weak spell in the Parag Parikh Flexi Cap Fund was not unusual, arguing that both the length and depth of the decline were modest. In a note to unit holders, he said the fund can go through stretches when its holdings lag or fall because it often owns businesses and sectors that are temporarily out of favour with the market.
Thakkar also said the fund’s cash position has eased to about 14% to 15% from a peak of roughly 25%, suggesting the portfolio has become more invested as opportunities improved. He said the firm’s view on a group of four private sector banks in the portfolio, including HDFC Bank, remains unchanged, underlining PPFAS’s preference for sticking with existing convictions rather than reacting sharply to short-term market moves.
That approach is consistent with how the fund is usually presented to investors. Market analysts have continued to recommend the scheme despite recent underperformance, pointing to its long-term, risk-adjusted track record and a disciplined large-cap bias. They have also urged investors to judge funds across full market cycles rather than by the latest winners in the category.
Thakkar, who joined PPFAS in 2001, has become one of the best-known names in Indian fund management and oversees assets of more than ₹1 trillion, according to recent reporting by Mint. The Parag Parikh Flexi Cap Fund is now the largest fund in its category, and the manager’s cautious, valuation-led style remains central to its identity. Separately, industry comparisons have noted that PPFAS tends to keep meaningful cash on hand and invest selectively, a contrast with more aggressive peers that deploy capital more fully into large-cap and technology stocks.
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