scorecardresearchParag Parikh Flexi Cap Fund to resume accepting lumpsum investment. But there's a catch

Parag Parikh Flexi Cap Fund to resume accepting lumpsum investment. But there's a catch

Updated: 11 Mar 2022, 10:44 AM IST
TL;DR.

The fund discontinued accepting lumpsum money after Sebi’s diktat following the breach of industry’s overall limit of $7 billion prescribed by RBI

As per Value Research data, Parag Parikh Flexi Cap Fund invests around 30 percent in overseas stocks.

As per Value Research data, Parag Parikh Flexi Cap Fund invests around 30 percent in overseas stocks.

Parag Parikh Flexi Cap Fund will reopen for transactions from next week, informed Rajeev Thakkar, CIO & Director of PPFAS Mutual Fund, reported Economic Times. PPFAS Mutual Fund discontinued accepting lumpsum money after market regulator Securities Exchange Board of India’s (Sebi) diktat following the breach of overall limit of $7 billion prescribed by RBI.

As per Value Research data, Parag Parikh Flexi Cap Fund invests around 30% in overseas stocks, wrote ET

“As of now, we have no visibility on if / when and by how much the limit for overseas investments will be revised. As I write today, there is a conflict going on between Russia and Ukraine, Crude Oil prices have risen and the Indian Rupee has fallen somewhat. In such a scenario, having funds readily available will be advantageous rather than opening the scheme after the limit increase only to see the industry wide cap get breached again,” said Thakkar on company's website here.

He said in the statement, “we will be opening up Parag Parikh Flexi Cap Fund for acceptance of transactions with effect from Tuesday, March 15, 2022.”

“We have been getting feedback from investors that they would like to benefit from lower stock prices and invest in Parag Parikh Flexi Cap Fund. Also, various investors have registered their SIPs through different platforms where the back-end for each differs. This has caused confusion among investors and partners regarding the status of their investments in Parag Parikh Flexi Cap Fund,” added Thakkar.

He said there is no change in the overseas investment limit as of now. Because of this, fresh net inflows will have to be invested in India. It is expected that over time, the weightage of foreign stocks in Parag Parikh Flexi Cap Fund will come down. “As and when overseas investment limits are increased, we will rebalance the portfolio as per the then prevailing situation and valuations,” he added

As of now, investors who wish to have a higher weightage to foreign stocks will have to use the individual limits under the Liberalised Remittance Scheme (LRS) of the RBI to invest in overseas stocks or mutual funds.

 

First Published: 11 Mar 2022, 10:40 AM IST