PPFAS sets January NFO dates for Parag Parikh Large Cap Fund

Parag Parikh

• Parag Parikh Large Cap Fund NFO opens Jan 19, 2026, closes Jan 30, 2026
• Fund aims to mimic index portfolio with active execution and low expense ratio
• Scheme will invest mainly in large-cap stocks, capped at 10 percent per stock

Did our AI summary help?

PPFAS Mutual Fund has announced new fund offer (NFO) dates for the Parag Parikh Large Cap Fund, providing the first concrete timeline for the launch of its much-anticipated large-cap equity scheme.

According to the fund house, the NFO will open for subscription on January 19 and close on January 30. The scheme will reopen for continuous purchase and redemption from February 6. The fund will be benchmarked against the Nifty 100 Total Return Index (TRI).

The launch of the Parag Parikh Large Cap Fund was first announced in November 2025, when Parag Parikh Financial Advisory Services (PPFAS) shared plans to introduce an actively managed large-cap fund in early 2026. The scheme marks a notable expansion of PPFAS’s equity product lineup, being its first new equity launch in nearly five years and only the third equity scheme after the Parag Parikh Flexi Cap Fund and the Parag Parikh ELSS Tax Saver Fund.

Strategy and positioning

The Parag Parikh Large Cap Fund is designed to behave like a low-cost index-style portfolio with an active execution layer, the fund house said. While the portfolio is expected to hold most Nifty 100 stocks in largely index-like weights, exposure to a stock will be capped at 10 percent.

Unlike index funds that rebalance mechanically, the scheme will not be compelled to buy or sell stocks strictly on index change dates. Instead, it will seek to execute trades more efficiently and avoid paying up during temporary price spikes caused by index inclusions or exclusions.

The expense ratio is expected to be in the 10-30 basis point range, making it competitive with existing Nifty 100 index funds, despite the scheme being actively managed.

Portfolio construction and fund management

According to the draft scheme information document, the fund will invest 80-100 percent of the corpus in large-cap equities. Up to 20 percent may be allocated to non-large-cap stocks, debt instruments, REITs and InvITs, providing limited flexibility beyond large-cap equities.

The equity portion will be managed by PPFAS’s core investment team of Rajeev Thakkar, Raunak Onkar, Raj Mehta and Rukun Tarachandani. Tejas Soman and Aishwarya Dhar will oversee the debt component.

PPFAS chairman and CEO Neil Parikh has described the fund as an actively managed product that aims to function like an index fund. The goal is to capture incremental returns through “smart execution", says the fund house.

Tarachandani said this includes opportunities arising from cash-futures mispricing, index rebalancing flows, merger-related swap inefficiencies and volatility-driven pricing gaps.