Parag Parikh Large Cap Fund opens for subscription. Who should invest?

Parag Parikh Large Cap Fund, a new fund offer (NFO) by PPFAS Mutual Fund, is open for subscription and will close on January 30, 2026. The scheme will reopen for continuous sale and repurchase on February 6. This scheme will be the seventh offering by the fund house since its inception.

The investment objective of the fund is to generate long-term capital appreciation and income distribution to investors by predominantly investing in equity and equity-related instruments of large-cap companies.

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The scheme seeks to provide cost-efficient, broad large-cap exposure with an implementation approach designed to manage trading and impact costs, while keeping portfolio positioning close to the scheme’s benchmark over time, using efficient instruments and maintaining a small active share.

The minimum investment shall be Rs 1,000 and in multiples of Re 1 thereafter. There will not be any entry or exit load. Both Direct and Regular Plans will offer Growth and Income Distribution cum Capital Withdrawal options.

The performance will be benchmarked against the Nifty 100 TRI and will be managed by Rajeev Thakkar, Raunak Onkar, Raj Mehta, Rukun Tarachandani, Tejas Soman and Aishwarya Dhar.

“Many investors seek large-cap exposure that is transparent, low-cost, and consistent. This fund has been launched to meet that need by focusing on smart execution and cost efficiency, the benefits of which will be passed to the end investor,” said Neil Parag Parikh, Chairman and CEO, PPFAS Mutual Fund.Rukun Tarachandani, EVP and Fund Manager, PPFAS Mutual Fund, explained, “The scheme may deploy five strategies to get exposure in a cost-efficient manner. Firstly, single-stock futures at a discount, which means that when a stock’s near-month futures trade below the cash price, we may use such futures aiming to obtain exposure more efficiently, subject to limits and regulations.

Secondly, index futures at a discount, which means similarly, if index futures trade below index levels, we may use such futures to obtain exposure efficiently. Thirdly, merger-related arbitrage, which means that when a company in an index is merging with another firm, the scheme may buy the stock which is at a discount to the announced merger ratio up to permissible limits.

Fourth is smarter rebalancing, which means that when the Nifty 100 constituents change, we may rebalance gradually rather than on the exact index date to seek better execution. Lastly, small opportunistic active share, which means that around corporate actions such as demergers and special situations, we may phase entries and exits to manage liquidity and impact costs. The aim is to keep the overall active share low, below 10%.”

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Who should invest?

PPFAS Mutual Fund said that this large-cap fund is suitable for investors who seek broad exposure to India’s top 100 companies by market capitalisation and prefer lower costs compared to typical active funds.

Investors who value a strategy that aims to deliver index-like returns, have a long-term investment horizon of five years or more, understand that equity investments can be volatile, and value tactical efficiency in implementation can consider investing in this fund.

Who should avoid investing in this fund?

According to the fund house, investors who seek to significantly outperform the index and want concentrated bets on specific stocks or sectors should avoid investing in this fund.

Investors who prefer active stock selection based on fundamentals, have a short-term investment horizon, cannot tolerate equity market volatility, and expect the fund to avoid overvalued stocks should also avoid investing in this largecap fund.