Rajeev Thakkar, CIO of PPFAS Asset Management, emphasises that equities do not guarantee fixed returns and investors should be prepared for market fluctuations, especially amid recent turbulence and fund scrutiny.
Rajeev Thakkar has told investors disappointed by recent share-market swings that they should stop expecting equity to behave like a bank fixed deposit. The chief investment officer at PPFAS Asset Management argued that stocks do not offer assured returns and that anyone seeking certainty should place money in an FD instead. His message comes after a turbulent few years in which many mutual fund and equity investors have seen profits shrink or remain muted.
Thakkar’s point is a simple one: volatility is part of the bargain in equities. Unlike a fixed deposit, where the interest rate is known in advance, stock returns depend on company performance, valuations, the economy, sentiment and broader market conditions. He said investors cannot reasonably expect the upside of equities without accepting periods of weak performance and uncertainty.
His comments also arrive as PPFAS’s own flagship fund has faced scrutiny over recent results, cash levels and exposure to HDFC Bank. According to the company’s disclosures and recent interviews, the firm’s cash position rose to about 25% during the market rally in 2024 but has since fallen to roughly 14%-15% as valuations eased, with more room to deploy capital if attractive opportunities emerge. Thakkar has also said the latest issues at HDFC Bank do not resemble the kind of widespread governance failures that would force the fund to abandon its position.
The broader investment philosophy has remained consistent. PPFAS has described itself as a value-oriented house that prefers long-term, bottom-up stock selection over market timing. In a recent interview, Thakkar said short-term events such as wars or ceasefires matter little to long-term investors, and that volatility can create opportunities for disciplined capital deployment. The firm has also said weakness in IT services shares may offer selective openings, rather than a signal to chase every theme linked to artificial intelligence.
Disclaimer: This article is intended to inform and educate, not to recommend or endorse any financial product, investment or strategy. Please consider your own financial circumstances and seek professional advice where appropriate before making financial decisions.
