Parag Parikh Asset Management was launched on 10th October 2012 an is promoted by arag Parikh Financial Advisory Services Pvt. Ltd, a financial advisory firm incorporated in 1992. The mission of this mutual fund is to provide prudent fund management so that investors can attain their long-term financial goals.
The tagline of the company is 'There's only one right way'. They believe in simplifying the process of investing for their clients and that is their main motive.
It provides a host of mutual funds to investors and they also invest in various schemes across different market capitalization.Their simplistic way of managing funds and providing transparent service to investors makes them popular in the mutual fund industry.
If you are saving for very short-term goals like a vacation or buying an automobile, then this category is ideal for gains within one year. It is also an excellent resort to park your money until you decide where to invest or spend next. Returns are taxed as per your income tax slab if sold before three years and have negligible tax post that period.
Purpose: Invest here for your short term goals like a vacation, buying a bike, jewelry or expensive gadget.
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Fund Performance: This fund has consistently beaten its benchmark in Liquid segment and provided -100% annualized returns in the last 3 years. In the last 1 year, it gave 6.45% returns.
Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided 6.45% returns in the last 1 year. Groww rated this fund as 3 Star. This is one of the best Debt mutual fund in India.
Fund Manager: Raj Mehta
|Launch Date||29 Jun 2018|
|Min Investment Amt||₹5,000|
— Registered with SEBI, AMFI & BSE
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Suppose a mutual fund invests in ten stocks and total current market value of these stocks is 1.1 Crore. Out of this, the AMC deducts say, 0.1 Crore for operating the fund (this is known as the expense ratio). So the net value is 1 crore. Now the AMC will divide this 1 Crore into say, 10,000 parts. These parts are known as units. The cost of one unit is 1Cr/10,000 = Rs. 1000. This is known as the Net Asset Value (NAV) of the mutual fund. Suppose the AMC has set a minimum investment requirement of Rs. 500. Then if you pay Rs. 500, you will get 0.5 units of the fund. Remember that the cost of one unit is the cost when you made the purchase. Suppose after one year, the NAV has fallen to Rs. 700 per unit and you wish to exit the fund (also known as redemption), then you sell your 0.5 units back to the AMC and get 0.5 x Rs. 700 = Rs. 350 back. Yes, you invested Rs. 500 and got back Rs. 350 – a loss of 150 over a year. The point is, that you buy units at current NAV and sell units (fully or partially) at current NAV. This is what investing in mutual fund actually means.
One of the best ways to hedge against the small-cap volatility is to adopt a phased approach, also known as Systematic Investment Plan (SIP) approach. We are sure that you must be aware of SIP and its benefits. Buying in small quantity but buying regularly provides you with faster growth. On Groww.in, all transactions to and from AMC is done via BSE. When you decide to invest in a large cap mutual fund of your choice, you choose that mutual fund on the website and click ‘invest’. Following that, you are redirected to the BSE page where you make the payment. BSE then directs your money to the AMC managing your mutual fund. To be assured at your end, you can visit the individual AMC website after the payment. You would be able to see all your purchased units against your folio number.
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