Archive · 9 Aug 2026
Rajeev Thakkar on Range-Bound Markets: What Investors Should Know
Imagine you put your money in a big basket of company shares called a mutual fund, hoping it grows.
For about two years, the stock market has mostly stayed in the same place instead of going up.
Some people started to worry, so the person in charge of the fund, Rajeev Thakkar, wrote them a letter to explain.
He said sideways markets are normal and can last a while.
The fund kept some of its money as cash instead of buying shares, which can protect it when prices fall.
Now the fund is finding more good companies to buy, so it is using some of that cash.
He thinks the future looks better because shares have become cheaper.
He also said artificial intelligence, computer programs that can write code, will not end the need for teams to build software.
The fund still believes in its private-sector bank shares, like HDFC Bank.
He reminded everyone that investing goes up and down, and that is how it can earn more than a savings account.
PPFAS Mutual Fund CIO Rajeev Thakkar addressed unitholder concerns about roughly two years of range-bound equity markets in a fund note.
Cash levels in the Parag Parikh Flexi Cap Fund peaked at about 25% and have since fallen to around 14-15%.
Thakkar described the IT services sell-off as an opportunity, arguing that AI implementation work will not disappear.
PPFAS retained its basket of four private-sector banks with no change in outlook, including for HDFC Bank.
Thakkar cited Nifty 100 at a P/E of 20.8 versus 30.7 for the Nifty Midcap 150 and 34.6 for the Nifty Smallcap 250.
- Who
- Rajeev Thakkar, CIO and director at PPFAS Mutual Fund, communicated the message in a note to the fund's unitholders.
- What
- Thakkar addressed concerns about two years of range-bound equity markets and PPFAS scheme performance, covering cash levels, AI, IT services, private-sector banks and small- and mid-caps.
- When
- The exact date is not stated; the note cites market valuation data from 4 August.
- Where
- India, where PPFAS Mutual Fund operates and where the Nifty indices and HDFC Bank are based.
- Why
- To answer questions about fund performance, valuations and the market outlook after roughly two years of sideways equity markets.
- Fund
- Parag Parikh Flexi Cap Fund (PPFAS Mutual Fund)
- Peak cash level
- About 25%
- Current cash level
- Around 14-15%
- Nifty 100 P/E ratio
- 20.8 (4 August data)
- Nifty Midcap 150 P/E ratio
- 30.7
- Nifty Smallcap 250 P/E ratio
- 34.6
- Private-sector bank holdings
- Four banks, including HDFC Bank
- Indian Energy Exchange position
- Sub-1% of portfolio