The investment objective of the Scheme is to seek to generate long-term capital growth from an actively managed portfolio primarily of equity and Equity Related Securities.
Parag Parikh Long Term Equity Fund-Reg(G):
The fund main objective is to achieve long term capital appreciation by primarily investing in equity and equity related instruments. The fund does not have any limitations and restrictions on its investment universe. The fund follows the multi-cap strategy. It can invest across all sectors, all market capitalizations, and any geography. The fund invests up to 65% of its corpus in Indian listed equities to get benefit from the favorable capital gains tax treatment and up to 35% of its corpus will be invested in foreign equities.
The fund is managed by three fund managers. Mr. Rajeev Thakkar manages the Indian equity portfolio. He has over 16 years of experience in the financial services industry. Mr. Raunak Onkar manages the overseas securities and Mr. Raj Mehta manages debt portfolio in the fund.
The fund purely follows the principles of value investing. The fund invests in stocks with a long term outlook, quality management and also considers the valuation of companies and quality of sector and business-like ROC, entry barriers, capital intensity, growth prospects, etc. the fund has foreign giants like Alphabet Inc(Google), Facebook Inc, Suzuki Motors Corp (ADR), IBM, Amazon.com, etc.
Investing in this fund gives an opportunity to the investor to diversify portfolio not only in India but also outside India. Beta, which signifies the market risk & volatility of the portfolio, is very low for this fund compares to other funds in this category.
The fund has a track record of around 6 years and has AUM of Rs. 1,738 crores as on 31 March 2019. The fund has generated a return of 17% whereas the benchmark Nifty 500 has given a return of 13.9% since inception.
An investor can start Investing in this fund with a minimum one-time investment of Rs. 1,000 or Monthly SIP Rs. 1000 with a minimum of 6 installments. This fund is suitable for investors who want to park their money for long term goals with an investment horizon of more than 5 years.