Parag Parikh Flexicap Fund will reopen for new subscription tomorrow

The flagship fund of Parag Parikh MF will now accept new investments beginning tomorrow. Continue reading to learn more.

The flagship fund of Parag Parikh Financial Advisory Services (PPFAS), the Parag Parikh Flexicap Fund, had ceased taking new investments. This was done because the industry had achieved the industry-wide limit of seven billion dollars for investing in foreign securities.

Neil Parag Parikh, Chairman and CEO of PPFAS Mutual Fund, told us in an exclusive interview, “Logically, the limits should have already been increased and I am not sure why it is taking so long. The last limit increase was done 14 years ago when MFs were in a nascent stage. Things are much different today and I hope the limits are increased soon. Currently, our flexi-cap fund is closed for new subscriptions – lump sum as well as SIPs. Only existing SIPs and STPs registered before February 2, 2022, are going on. We have not seen any unusual redemption. In fact, people are waiting for the fund to open to make their investments.”

Also Read: In conversation with Neil Parag Parikh Chairman and CEO, PPFAS Mutual Fund

We highlighted the alternative flexi-cap funds that you might explore in addition to the Parag Parikh Flexicap Fund in our post on the suspension of new investments in the same fund. However, in a letter to unitholders dated March 10, 2022, Rajeev Thakkar - CIO & Director, PPFAS Mutual Fund indicated that its flagship fund, the Parag Parikh Flexicap Fund, will reopen for new investments on March 15, 2021.

Also Read: Parag Parikh Flexi Cap Fund no longer accepts new transactions. Where should you invest?

He remarked that “As of now we have no visibility on if/when and by how much the limit for overseas investments will be revised. As I write today, there is a conflict going on between Russia and Ukraine, Crude Oil prices have risen and the Indian Rupee has fallen somewhat. If and when the limits are increased, and if it is of a relatively small amount, the same will get exhausted soon. In such a scenario, having funds readily available will be advantageous rather than opening the scheme after the limit increase only to see the industry-wide cap get breached again.”

Also Read: Parag Parikh Flexi Cap Fund: A stable wealth creator?

Even if it accepts new investments, it will not be channelled as it was previously. They will not be allowed to invest in foreign securities this time, and any money invested following the re-opening will be invested solely in the domestic market. As a consequence, the overall exposure to foreign securities would be reduced till the limit is raised.