1 day ago
PPFAS Funds Gain Permission to Invest in Gold, Silver ETFs
Several Parag Parikh funds have changed the rules describing what they are allowed to buy.
Some funds can now invest part of their money in gold and silver ETFs.
ETFs are investment products that track the price of assets such as gold or silver.
The Flexi Cap Fund can still put 65-100% of its money into equities.
The Large Cap Fund will put 80-100% into large-company equities.
Other funds, including the ELSS Tax Saver Fund, Conservative Hybrid Fund and Arbitrage Fund, also have revised investment limits.
These changes give the fund managers more choices.
However, permission to buy an asset does not mean the funds will definitely buy it.
Actual investments will depend on each fund’s strategy and market conditions.
Parag Parikh Flexi Cap Fund can allocate 0-35% to money-market and liquid instruments, including gold and silver ETFs and InvITs.
The Flexi Cap Fund may also invest 0-35% in foreign equity, overseas ETFs and mutual funds.
Parag Parikh Large Cap Fund will keep 80-100% in large-cap equities, with its remaining allocation able to include gold and silver ETFs and other permitted assets.
The ELSS Tax Saver, Conservative Hybrid and Arbitrage funds also received revised allocation frameworks involving commodities and other instruments.
The changes expand what the schemes may invest in but do not mean their actual gold or silver exposure will immediately increase.
- Who
- The Parag Parikh Flexi Cap, Large Cap, ELSS Tax Saver, Conservative Hybrid and Arbitrage funds.
- What
- Their investment frameworks were revised to permit broader use of gold and silver ETFs, overseas investments, liquid instruments and other assets.
- Where
- The changes apply to the investment portfolios of the named Parag Parikh funds; no specific location is given.
- When
- The article does not specify when all of the revised frameworks took effect.
- Why
- To expand the range of instruments the schemes are permitted to use while retaining their stated allocation limits.
Key facts
- Flexi Cap equity allocation
- 65-100% in equity and equity-related instruments.
- Flexi Cap additional allocation
- 0-35% may go to money-market and liquid instruments, including gold and silver ETFs and InvITs.
- Flexi Cap foreign allocation
- 0-35% may be invested in foreign equity and related investments, including overseas ETFs and mutual funds.
- Large Cap equity allocation
- 80-100% in equity and related securities of large-cap companies.
- Large Cap additional allocation
- 0-20% may include other-company equities, foreign companies, overseas funds and ETFs, money-market instruments, gold and silver ETFs, InvITs and other liquid instruments.
- Conservative Hybrid allocation
- 75-90% in debt and money-market instruments, 10-25% in equity-related instruments, and 0-10% in gold and silver ETFs, ETCDs and InvITs.
- Arbitrage allocation
- Under normal conditions, 65-100% may be invested in hedged equities and derivatives; under defensive conditions, that range can fall to 0-65%.
Sources
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