PPFAS - A Journey Guided by Philosophy
What makes the fund-house? And what gives it the loyal fan-following among investors?
In the second part of our study on Parag Parikh Financial Advisory Services’, fondly called PPFAS, recent concall with the distributors, we give you a glimpse of their journey and what gives them a loyal fanbase among the investment community.
The Journey
PPFAS has been in the equity mutual fund space since 2013, but as a group, they have an experience of more than 40 years. Founded by the Late Shri Parag Parikh, PPFAS started as a brokerage in 1990 and was one of the few to survive the Harshad Mehta scam of 1992.
With the entry of FIIs post-liberalisation in the late 90s, Paragbhai famously refused to onboard any of these institutions until the issue of fake share circulation and bad deliveries following the 1992 scam was sorted out. Moreover, there were several opportunities to give in to the then fad of providing quick money-making stock tips to these institutions. Paragbhai's team stuck to their long-term investment ideas at the cost of making zero money for eight months!
Even after they started their PMS in 1996, they developed a relationship with their clients by having the doors of communication open. And it's refreshing to see the firm's ethos of 'client first' with upfront transparency still continuing in today's growth-at-any- cost world. The fund house has held regular AGMs since its inception in 2013, where the retail investors can have 2-way communication with the tremendously experienced and competent team.
The Philosophy
Let's have a look at what separates this fund house from the rest -
1 . Skin in the Game
On their website, you can find a tab of the same name where in all the disclosures regarding the fund house, its promoters and employees have been invested in the products that they manage.
This clearly signifies that everyone directly associated with the functioning of the fund house believes in linking their success to that of the investors. This prompts the fund to work extra hard to preserve that trust and refrain from making reckless decisions.
2. The Swiss Knife
The fund house operates only four schemes. They strongly believe in the mantra - “The fewer, the better!” The CEO, Mr Neil Parikh, believes that these four products are sufficient to provide everything they need from an investment.
Their Flexi Cap fund takes care of the Long-term financial goals, Hybrid Fund is apt for short-mid term goals and gives exposure to the debt asset class, their ELSS fund takes care of tax saving and the liquid fund helps with the Systematic Transfer Plan (STPs) a the time of rebalancing. Just like a swiss-knife, these four schemes are sufficient to solve every investment purpose for an investor. Plus, it obviously adds value, given how the competency of the team, which has decades of collective experience.
We at Zen Nivesh are inspired by PPFAS' mantra of keeping things simple. We are trying to simplify personal finance for investors. Please read, subscribe and share.
Photo Credits on the Infographics -
'Timeless' Memoir, @PPFAS Website, Unitholder Meet - PPFAS Facebook Page.
Skin in the Game Rocket Boy Image - https://sproutsschools.com/skin-in-the-game/