According to Value Research Online, the move indicates PPFAS’s intention to extend its established investment process — known for long-term, value-oriented stock selection — into a segment that is typically more benchmark-driven and competitive.
Large-cap mutual funds invest predominantly in well-established companies and are generally perceived to offer relatively stable returns compared to mid- or small-cap funds. However, generating consistent outperformance, or alpha, in this space has become difficult in recent years due to high market efficiency and limited valuation gaps.
PPFAS currently manages a compact product range that includes its flagship Parag Parikh Flexi Cap Fund, which has built a reputation for consistent performance and long-term investment discipline.
The large-cap fund will be the first major product addition by the fund house in several years.
Details such as the new fund offer (NFO) period, benchmark index, expense ratio, and portfolio allocation have not yet been announced. The fund will be subject to the same regulatory norms applicable to large-cap schemes under SEBI’s mutual fund categorisation framework.
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