New Parag Parikh Large Cap Fund Opens for Subscription from January 19 to 30

After months of waiting, PPFAS Mutual Fund has announced the launch of its new equity scheme, the Parag Parikh Large Cap Fund. The New Fund Offer (NFO) will open on January 19 and continue until January 30, allowing investors to subscribe to units at the launch price during this period.

After the NFO period, the scheme will be available for regular purchase and redemption from February 6; from then onwards, investors will be able to buy or redeem units at the prevailing Net Asset Value (NAV).

Benchmark and Investment Strategy
The fund will track the Nifty 100 Total Return Index (TRI) as its benchmark, which is made up of the 100 large-cap companies in India by market capitalisation.

The goal is to give investors returns similar to this benchmark while keeping costs low and not picking stocks too aggressively.

The scheme will be managed by a team of seasoned professionals – Rajeev Thakkar, Raunak Onkar, Raj Mehta, Rukun Tarachandani, Tejas Soman, and Aishwarya Dhar. Their approach will focus on maintaining a low "active share," allowing the fund's portfolio to not deviate much from the index, according to reports. The strategy helps reduce the risk of underperformance due to poor stock selection.

Fund For Whom?
According to the reports, the Parag Parikh Large Cap Fund will be suitable for investors who are less aggressive and preferably looking for stable returns for the long term – typically five years or more. The fund will not be preferable for investors who are willing to take high risks and seek more returns.

Plans, Options, and Tax Treatment
There will be both Direct and Regular plans for the scheme, and there will be Growth and IDCW (Income Distribution cum Capital Withdrawal) choices. Tax-wise, this fund is an equity-orientated scheme because it would put at least 65% of its assets into Indian stocks. This means that long-term capital gains (LTCG) of up to Rs. 1.25 lakh in a financial year are not taxed. Tax deducted at source (TDS) will apply to dividends over Rs. 10,000 in a year, along with any relevant surcharges and cess, as per current tax regulations.

Fifth Fund in the PPFAS Lineup

Once launched, the Parag Parikh Large Cap Fund will be the fifth mutual fund offer from PPFAS. The fund house is already running its flagship Parag Parikh Flexi Cap Fund, which has a strong follower base of long-term investors.

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