Archive · 27 Jul 2025
Financial Planner Addresses Concerns about PPFAS Fund's Size
Imagine a fund like a big piggy bank (PPFAS) getting a lot of money.
Some people worry if it gets too big, it won't earn as much.
Kirtan Shah, a financial planner, says it's not that simple.
He explains that the risk isn't just how big the piggy bank is, but more about how the company managing all the piggy banks (AMCs) works.
If the company has lots of piggy banks putting money into the same few small businesses, that's a problem.
But PPFAS is different; it adjusts by buying more companies to avoid problems as it grows.
Shah suggests it's not just the size that matters, it's how it's managed.
He thinks PPFAS, despite its size, is doing okay because of smart choices.
Financial planner Kirtan Shah discusses the impact of Parag Parikh Flexicap Fund's (PPFAS) growing assets under management (AUM).
Shah argues that rising AUM doesn't automatically lead to underperformance and that AMC-level risk is more significant.
The main constraint of a large AUM is exposure to small-cap stocks, where concentrated positions become challenging.
PPFAS has adjusted its portfolio, increasing the number of stocks held, while small-cap holdings remain modest.
Shah believes performance pressure is most visible in small-cap categories, not diversified flexicap schemes like PPFAS.
- Who
- Kirtan Shah, a financial planner, provides his perspective on the fund's size and performance.
- What
- Analysis of whether the growing size of the Parag Parikh Flexicap Fund (PPFAS) could affect future performance.
- When
- The article discusses the current state of PPFAS and its AUM.
- Where
- The discussion is centered around the financial market and the performance of PPFAS.
- Why
- To clarify whether the large size of PPFAS is a concern for its investors.
Concern
Reassurance
Impact of AUM size on performance
Concern
Growing AUM could weigh on future performance, especially in small-cap allocations.
Reassurance
Rising AUM does not automatically equate to underperformance.
- Fund
- Parag Parikh Flexicap Fund (PPFAS)
- AUM
- ₹1 lakh crore
- Small-cap holdings
- 3.77%
- Mid-cap holdings
- 2.39%
- Large-cap holdings
- 52.95%
- Portfolio size
- 72 to 87 stocks