Invest Wisely: Ppfa Mutual Funds Guide

PPFAS Mutual Fund is an investment option for those looking to grow their capital over the long term. The fund has a global focus but invests primarily in Indian equities, foreign equities, and related instruments and debt securities. The minimum application amount for the Parag Parikh Flexi Cap Fund is ₹1,000 for new purchases, additional purchases, and monthly SIP, while it is ₹3,000 for quarterly SIP. The fund also offers a tax-saving option with the Parag Parikh ELSS Tax Saver Fund, which has a statutory lock-in period of 3 years. Before investing, it is important to carefully read all scheme-related documents and be aware that mutual fund investments are subject to market risks.

Understanding the different types of funds offered by PPFAS Mutual Fund

PPFAS Mutual Fund is an asset management company (AMC) that offers a range of mutual fund schemes to help investors grow their wealth through professionally managed portfolios. The company has a unique approach to asset management, focusing on long-term growth and a disciplined investment strategy.

Parag Parikh Flexi Cap Fund (formerly known as Parag Parikh Long Term Equity Fund)

This fund seeks to generate long-term capital growth from an actively managed portfolio of equity and equity-related securities. It is an open-ended dynamic equity scheme investing across large-cap, mid-cap, and small-cap stocks. The fund has a minimum application amount of ₹1,000 for new purchases, additional purchases, and monthly SIPs, while the quarterly SIP amount is ₹3,000.

Parag Parikh Liquid Fund

The Parag Parikh Liquid Fund is an open-ended liquid scheme that offers low risk and high liquidity. It achieves this by investing in debt and money market instruments. As of May 31, 2019, the net asset value of this scheme was:

• Growth – Rs. 1068.40 (direct plan) and Rs. 1067.15 (regular plan)
• Daily dividend – Rs. 1000.20 (direct and regular plan)
• Weekly dividend – Rs. 1001.65 (direct plan) and Rs. 1001.64 (regular plan)
• Monthly dividend – Rs. 1003.65 (direct plan) and Rs. 1003.64 (regular plan)

Parag Parikh ELSS Tax Saver Fund

The Parag Parikh ELSS Tax Saver Fund is an open-ended equity-linked saving scheme with a statutory lock-in period of 3 years and tax benefits. At least 80% of the fund's corpus is invested in equities of small, medium, and large-sized companies based in India. This fund is ideal for investors seeking long-term investments and simple investment solutions.

Parag Parikh Conservative Hybrid Fund

The Parag Parikh Conservative Hybrid Fund is a hybrid fund that combines investments in equity and debt instruments. This fund is suitable for investors seeking a balance between equity and debt exposure.

Parag Parikh Arbitrage Fund

The Parag Parikh Arbitrage Fund is another hybrid fund offered by PPFAS Mutual Fund, providing investors with an opportunity to profit from price differences in securities across markets.

Parag Parikh Dynamic Asset Allocation Fund

The Parag Parikh Dynamic Asset Allocation Fund is a hybrid fund that dynamically allocates assets across equity, debt, and money market instruments based on market conditions.

PPFAS Mutual Fund offers a range of funds catering to different investment goals, horizons, and risk appetites. It is important for investors to carefully consider their financial objectives and risk tolerance before choosing a fund that aligns with their investment strategy.

How to register for Systematic Investment Plans (SIPs)

To register for Systematic Investment Plans (SIPs) with PPFAS, you can follow these steps:

Firstly, it is important to understand what a Systematic Investment Plan (SIP) is and how it works. A SIP is a plan where investors make regular, fixed payments into a mutual fund, such as the PPFAS Mutual Fund. This allows investors to save consistently, even with smaller amounts of money, and benefit from long-term advantages such as dollar-cost averaging (DCA). With DCA, you buy investments using periodic transfers of the same amount, building wealth over time.

The PPFAS Mutual Fund offers various schemes for investors, such as the Parag Parikh Flexi Cap Fund, Parag Parikh Liquid Fund, and Parag Parikh ELSS Tax Saver Fund. The ELSS Tax Saver Fund, for example, is an open-ended equity-linked savings scheme with a three-year statutory lock-in and tax benefits.

To register for a SIP with PPFAS, you can refer to their website for application forms and further information. You will need to choose the specific scheme you want to invest in and decide on the amount and frequency of your investments. The minimum investment amount for the Parag Parikh Flexi Cap Fund, for instance, is ₹1,000 for a new purchase, additional purchase, or monthly SIP.

Once you have decided on the details of your SIP, you can submit an application form to initiate the auto-debit process. You will need to provide bank account details from which the fixed amounts will be automatically debited and invested in your chosen mutual fund at predetermined intervals.

It is important to note that SIPs often require long-term commitments, and there may be sales charges or penalties for early withdrawal or missed payments. Therefore, it is recommended to consult a financial advisor to determine the best investment strategy for your goals and circumstances.

How to view your PPFAS Mutual Fund investments online

To view your PPFAS Mutual Fund investments online, you can use the PPFAS SelfInvest platform, which is available as both a mobile and web app. This platform allows you to view your Account Statement online 24/7. To use this feature, you need to have a folio, which you can register for on the PPFAS Mutual Fund website.

Additionally, you can also receive your Account Statement via a missed call. This feature is available on the PPFAS Mutual Fund website, where you can also check your KYC status.

It is important to note that mutual fund investments are subject to market risks, and it is recommended to read all scheme-related documents carefully before investing.

The minimum investment amount for the Parag Parikh Flexi Cap Fund

The Parag Parikh Flexi Cap Fund is an open-ended dynamic equity scheme that invests across large-cap, mid-cap, and small-cap stocks. It is a flexi-cap fund, which means the fund management team has complete freedom to invest in companies of different sizes, depending on where they expect maximum gains.

The fund has a very high-risk rating and aims to achieve long-term capital appreciation by investing primarily in equity and equity-related instruments. It is suitable for investors looking for high returns and who are willing to invest for at least 3-4 years.

It is important to note that investors should not invest in this fund if they need to redeem their investment in less than five years.

How to protect yourself from online frauds when investing in PPFAS Mutual Fund

Investing in a mutual fund like PPFAS involves market risks, and it is important to be aware of potential online frauds to protect your money. Here are some ways to protect yourself from online frauds when investing in the PPFAS Mutual Fund:

Telephone Scams

Never disclose sensitive financial information such as your PAN, Aadhaar Number, Bank Account Number, OTP, etc., over the phone, even if the caller claims to be from a reputable organisation. Genuine service providers will never ask for such information over the phone.

Email Scams

Always carefully scrutinise the email address of the sender. Ensure that the domain name matches the organisation it claims to be from. For instance, genuine emails from PPFAS will only come from an address ending with '@ppfas.com'. Do not click on links within emails, as they may redirect you to a fake website. Instead, visit websites directly by typing the URL into your browser.

Website and Phishing Scams

Phishing sites often closely resemble genuine websites, and you may be directed to them via emails, SMS, or search engines. Always double-check the website address to ensure it is authentic. Verify the security certificate by clicking on the 'lock icon' next to the website address. Opt for two-factor authentication (2FA) for logging in, if available, and regularly change your passwords.

SMS Scams

Since SMS messages can originate from various IDs, it may not always be possible to verify their authenticity. Therefore, avoid clicking on links in SMS messages. Instead, visit websites directly by typing the URL.

Additionally, PPFAS Mutual Fund has provided the following assurances:

• They will never seek financially sensitive information via any means, be it written or oral.
• Their communications will never contain payment links. They only accept payments through the 'PPFAS SelfInvest' Mobile and Web Apps.

If you experience or suspect a phishing attack in PPFAS's name, contact them immediately.

Frequently asked questions