PPFAS Mutual Fund Launches Parag Parikh Conservative Hybrid Fund
   May 07, 2021

PPFAS Mutual Fund has launched a new open ended hybrid scheme - Parag Parikh Conservative Hybrid Fund.

Classified as a Conservative Hybrid Fund, the scheme is mandated to invest predominantly in debt instruments, along with small portion in equity and equity related securities.

The investment objective of the scheme is to generate regular income through investments predominantly in debt and money market instruments. The Scheme also seeks to generate long term capital appreciation from the portion of equity investments under the scheme.

However, there is no assurance that the investment objective of the Scheme will be realized.

Under normal circumstances, 75% to 90% of the funds portfolio will be invested in Debt securities (including securitized debt) & Money Market instruments. It can invest 10% to 25% of its assets in Equity & Equity related instruments. Upto 10% of its assets can be invested in Units issued by REITs and InvITs

As per the Scheme Information Document (SID), the total assets of Parag Parikh Conservative Hybrid Fund will be invested primarily in Debt and Money market instruments. The Scheme seeks to generate regular income through investments predominantly in debt and money market instruments. The Scheme also seeks to generate long term capital appreciation from the portion of equity investments under the scheme. The aim of equity strategy will be to build a portfolio of companies diversified across major industries, economic sectors and market capitalization that offer an acceptable risk reward balance.

The Scheme will retain the flexibility to invest in the entire range of debt securities (including securitised debt) and money market instruments. Investment in Debt securities and Money Market Instruments will be as per the limits in the asset allocation table of the Scheme, subject to permissible limits laid under SEBI (MF) Regulations. Investment in debt securities will be guided by credit quality, liquidity, interest rates and their outlook. The Scheme may also invest in the hybrid securities viz. Units of REITs and InvITs for diversification and subject to necessary stipulations by SEBI from time to time.

Subject to the Regulations and the applicable guidelines, the Scheme may engage in Stock Lending activities. The Scheme may also invest in the schemes of Mutual Funds.

The fund manager will seek to play out the yield curve and exploit anomalies if any in portfolio construction after analysing the macro-economic environment including future course of system liquidity, interest rates and inflation along with other considerations in the economy and markets.

The investment team of the AMC will, as a mitigation and risk control procedure, carry out rigorous credit evaluation of the issuer company proposed to be invested in. The credit evaluation will analyse the operating environment of the issuer, business model, management, governance practices, quality of the financials, the past track record as well as the future prospects of the issuer and the financial health of the issuer.

Parag Parikh Conservative Hybrid Fund’s performance will be benchmarked against CRISIL Hybrid 85+15-Conservative Index TRI.

The fund will be managed by Mr Rajeev Thakkar (Equity), Mr Raunak Onkar (Equity) and Mr Raj Mehta (Debt).

The NFO opens for subscription on May 07, 2021, and closes on May 21, 2021. The scheme will reopen for continuous Sale and Repurchase on May 28, 2021.

The fund’s NAV is priced at Rs 10/- per unit during the NFO period. The minimum subscription amount is Rs 5,000 and in multiples of Re 1 thereafter.

The fund offers Regular Plan and Direct Plan having Growth Option and Income Distribution cum capital withdrawal (IDCW) Option.

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