PPFAS unveils Parag Parikh Large Cap Fund with no exit load, focused on long-term returns

The Parag Parikh Large Cap Fund (PPLCF), a new open-ended equity scheme from PPFAS Mutual Fund, has been launched with a clear goal — to provide long-term capital appreciation by investing mainly in large-cap companies. The fund will be benchmarked against the Nifty 100 Total Return Index (TRI), aligning its strategy with the performance of India’s largest listed firms.

Unlike many peers, PPLCF carries no exit load, making it suitable for investors pursuing wealth creation through long-term participation in quality businesses. The fund is managed by an experienced team comprising Rajeev Thakkar, Raunak Onkar, Raj Mehta, Rukun Tarachandani, Tejas Soman, and Aishwarya Dhar, who bring a value-oriented yet pragmatic approach to portfolio construction.

Investment objective

The fund’s primary investment mandate involves deploying 80–100% of its corpus in equities and equity-related securities of large-cap companies, as defined by SEBI. It also allows 0–20% allocation to other equities — including mid-cap, small-cap, and overseas securities — and 0–20% in debt and money market instruments, ensuring diversification.

Additionally, the scheme may invest up to 10% in REITs and InvITs for steady income potential and up to US$100 million in foreign securities within SEBI’s overseas investment limit. The fund may also invest up to US$30 million in overseas ETFs, broadening its exposure to global growth themes.

PPLCF’s allocation strategy seeks to balance growth and stability, focusing on India’s blue-chip companies while maintaining tactical flexibility. The fund house said the approach would remain disciplined yet dynamic, adjusting exposure based on valuations, sector trends, and macroeconomic conditions.

Portfolio management

The fund may engage in equity derivatives such as futures and options to enhance efficiency and manage risk. It may also participate in stock lending to generate incremental income. The investment process will combine bottom-up stock selection with a top-down assessment of economic and interest rate trends.

The fund offers Direct and Regular Plans, each with Growth and Income Distribution cum Capital Withdrawal (IDCW) options. The Direct Plan with Growth Option will be the default choice.

Investors can start with a minimum investment of Rs 1,000 for a lump sum or a monthly SIP, with quarterly SIPs starting at Rs 3,000. Both initial and additional investments can be made in multiples of Re 1. The absence of any entry or exit load enhances flexibility, encouraging investors to stay invested through market cycles.

Taxation and suitability

For taxation, long-term capital gains (LTCG) above Rs 1.25 lakh will be taxed at 12.5%, while short-term capital gains (STCG) will attract a 20% tax. The fund is positioned for investors seeking steady long-term growth with exposure to large, stable companies.

The fund house noted that PPLCF aims to blend Parag Parikh’s value-driven philosophy with India’s large-cap resilience, offering investors a high-conviction approach backed by experienced fund managers.

Peer comparison and market context

Large-cap equity funds have historically proven to be reliable wealth creators, demonstrating resilience through market volatility. Top-performing peers such as ICICI Prudential Bluechip Fund, HDFC Top 100 Fund, and SBI Bluechip Fund have consistently delivered 14–18% annualized returns over five years, aided by exposure to industry leaders like Reliance Industries, HDFC Bank, Infosys, and ICICI Bank.

Despite market fluctuations, these funds have benefited from prudent sector allocation — particularly in banking, IT, and energy — while maintaining low churn and disciplined stock selection. Their track record highlights how large-cap exposure offers a balance between growth potential and capital stability.

Top 5 Equity Large Cap Funds

=== 1 Month ===
1. ICICI Prudential BHARAT 22 FOF - Direct Plan - 2.74%
2. BHARAT 22 ETF - 2.55%
3. Bajaj Finserv Large Cap Fund - Direct Plan - 2.31%
4. Taurus Large Cap Fund - Direct Plan - 2.03%
5. UTI BSE Sensex Next 50 ETF - 2.0%

=== 6 Months ===
1. Bank of India Large Cap Fund - Direct Plan - 12.76%
2. Quant Large Cap Fund - Direct Plan - 12.69%
3. DSP BSE Sensex Next 30 ETF - 12.38%
4. DSP BSE Sensex Next 30 Index Fund - Direct Plan - 12.19%
5. UTI Nifty Next 50 Exchange Traded Fund - 12.06%

=== 1 Year ===
1. Motilal Oswal Large Cap Fund - Direct Plan - 13.34%
2. WhiteOak Capital Large Cap Fund - Direct Plan - 8.27%
3. PGIM India Large Cap Fund - Direct Plan - 8.18%
4. ICICI Prudential Large Cap Fund - Direct Plan - 7.77%
5. Nippon India Large Cap Fund - Direct Plan - 7.68%

=== 3 Years ===
1. BHARAT 22 ETF - 27.23%
2. ICICI Prudential BHARAT 22 FOF - Direct Plan - 26.95%
3. UTI BSE Sensex Next 50 ETF - 21.36%
4. SBI BSE Sensex Next 50 ETF - 21.29%
5. Nippon India ETF BSE Sensex Next 50 - 21.07%

=== 5 Years ===
1. BHARAT 22 ETF - 33.41%
2. ICICI Prudential BHARAT 22 FOF - Direct Plan - 33.13%
3. Nippon India Large Cap Fund - Direct Plan - 23.92%
4. SBI BSE Sensex Next 50 ETF - 23.57%
5. UTI BSE Sensex Next 50 ETF - 23.57%

Outlook

In this context, the Parag Parikh Large Cap Fund enters a competitive but opportunity-rich segment. Its no-exit-load structure, diversified flexibility, and experienced management could appeal to investors who prefer consistency over speculation.

For investors seeking long-term wealth creation through quality businesses, PPLCF may offer a disciplined route to participate in India’s corporate growth story — combining stability, transparency, and professional oversight.