Parag Parikh puts skin in game; new fund mops up Rs 64cr

Moneycontrol Bureau

PPFAS Mutual Fund's equity diversified scheme, Long Term Value Fund has mopped up Rs 64 crore in the initial subscription period, according to a person associated with the fund.

In a unique move, the sponsor of the mutual fund, promoter Parag Parikh and his senior employees have invested roughly Rs 13 crore in the fund. (More details)

The fund will invest up to 65 percent in Indian equities and the rest in debt instruments and foreign equities.

The mutual fund has said that Long Term Value would be the only scheme to be launched in the foreseeable future.

And in another unusual move, the fund has made it clear that investors without a long-term view are unwelcome.

"This scheme is not for you if you track mutual fund Net Asset Values everyday, and the term 'Long Term' is merely a year or two," mentions the fund's website.

Domestic mutual funds have been net sellers of around Rs 23,000 crore worth of shares over the last one years, as many investors who had bought near the peak of the 2007-08 bull run have been redeeming their investments as soon as it reached break even levels.