Banking on WebNotes

HDFC Bank at PPFCF

Sat, 16 May 2026 00:00:00 +0000

Lead

HDFC Bank Limited has been the most enduring domestic anchor holding of the Parag Parikh Flexi Cap Fund (PPFCF) and emerged as the single largest equity position in the April 2026 factsheet at 7.94 per cent of net assets. The position has been built over many years and through multiple cycles, including the July 2023 reverse-merger with parent company Housing Development Finance Corporation Limited (HDFC Ltd) and the subsequent integration period.

ICICI Bank at PPFCF

Sat, 16 May 2026 00:00:00 +0000

Lead

ICICI Bank Limited has been a long-running domestic holding of the Parag Parikh Flexi Cap Fund (PPFCF) and one of the two large private-sector bank anchors in the scheme. The position has run alongside HDFC Bank at PPFCF as a paired exposure to the high-quality private-banking thesis that has been a recurring theme in PPFAS’s domestic-equity allocation.

For PPFAS Mutual Fund and the fund management team led by Rajeev Thakkar , Raunak Onkar and Rukun Tarachandani , ICICI Bank represented one of the cleanest turnaround narratives in Indian financial services. After a difficult period of corporate-loan stress and governance controversy in the 2016 to 2018 cycle, the bank was reshaped under Sandeep Bakhshi (who became MD and CEO in October 2018) into a higher-quality, retail-focused, technology-driven franchise. The turnaround offered the kind of contrarian, multi-year accumulation opportunity consistent with the PPFAS investment philosophy and PPFAS contrarian investing .

SIP vs recurring deposit (RD)

Tue, 12 May 2026 00:00:00 +0000

A Systematic Investment Plan (SIP) and a Recurring Deposit (RD) are both monthly savings mechanisms that require the investor to commit a fixed amount periodically. A SIP invests in mutual fund units at the prevailing NAV, while an RD is a bank deposit product earning interest at a predetermined rate. The two instruments differ fundamentally in risk profile, return potential, and tax treatment.

Definitions

SIP in a mutual fund

A SIP is an instruction to invest a fixed amount (minimum typically Rs 100-500) at a recurring date in a specified mutual fund scheme. The amount is debited via NACH or UPI AutoPay and invested in units of the scheme at the NAV on the execution date. SIPs are available for equity, debt, hybrid, and other fund categories.

Yes Bank AT1 bond writedown impact on mutual funds

Tue, 12 May 2026 00:00:00 +0000

The Yes Bank AT1 bond writedown of March 2020 was a regulatory action by the Reserve Bank of India under a Yes Bank crisis resolution scheme that reduced the value of approximately Rs 8,415 crore of Yes Bank’s Additional Tier 1 (AT1) bonds to zero. For Indian mutual fund schemes and other institutional investors that held these instruments, the writedown caused immediate, total, and permanent NAV losses on that exposure. The episode raised fundamental questions about the risk classification, disclosure, and distribution of AT1 instruments in Indian markets and prompted the Securities and Exchange Board of India to impose new restrictions on mutual fund holdings of AT1 and Tier 2 bank bonds.