Value Investing on WebNotes

Contrarian investing at PPFAS

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

Contrarian investing at PPFAS is the deliberate willingness of the PPFAS Mutual Fund investment team to build and hold portfolio positions in sectors and securities subject to negative broader-market sentiment, when the disciplined fundamental analysis and intrinsic-value estimation supports the underlying business thesis. The doctrine is closely related to, but conceptually distinct from, the margin of safety discipline and the owner-mindset doctrine: contrarian positioning is the specific behavioural willingness to act against prevailing sentiment when the analysis supports doing so, with attendant tolerance for extended periods of category-relative underperformance and willingness to accept the discomfort of holding out-of-favour positions through their sentiment cycle.

Margin of safety doctrine at PPFAS

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

The margin of safety doctrine at PPFAS is the foundational risk-management and entry-discipline principle that governs portfolio construction at PPFAS Mutual Fund across its scheme range, beginning with the flagship Parag Parikh Flexi Cap Fund launched on 24 May 2013. The doctrine, articulated by Benjamin Graham in Security Analysis (1934) and The Intelligent Investor (1949) as “the central concept of investment,” requires that any commitment of capital be made only at a price providing a meaningful discount to estimated intrinsic value, with the discount sized to absorb errors in valuation, deterioration in business fundamentals, and adverse market dynamics. At PPFAS, the doctrine is explicitly codified in the documented investment process published at amc.ppfas.com/schemes/investment-process/, articulated in monthly factsheet commentary by Chief Investment Officer Rajeev Thakkar , and operationalised through entry-point discipline across the Parag Parikh Flexi Cap Fund , the Parag Parikh ELSS Tax Saver Fund , the Parag Parikh Conservative Hybrid Fund , and (with category-specific adaptations) the Parag Parikh Arbitrage Fund and the Parag Parikh Liquid Fund .

Owner-mindset doctrine at PPFAS

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

The owner-mindset doctrine at PPFAS is the foundational orientation through which the investment team at PPFAS Mutual Fund treats equity ownership as fractional ownership of underlying businesses rather than as trading in tradable financial securities. The doctrine, articulated by Benjamin Graham in The Intelligent Investor (1949) and developed by Warren Buffett at Berkshire Hathaway from 1965 onwards, requires that every investment decision be assessed on the basis of the underlying business’s competitive position, capital allocation, management quality, and cash-flow generation, rather than on price-action signals, momentum indicators, or short-term market sentiment. At PPFAS, the doctrine is operationalised through long holding periods, willingness to tolerate short-term price volatility, active monitoring of portfolio-company management, and deliberate avoidance of decisions driven by chart patterns or short-duration price movements.

PPFAS investment philosophy

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

The PPFAS investment philosophy is the distinctive value-investing and behavioural-finance framework that guides portfolio construction and management at PPFAS Mutual Fund . The philosophy was articulated by founder Parag Parikh through his two books, Stocks to Riches (2005) and Value Investing and Behavioral Finance (2009), and through his client letters and media writings during his career at Parag Parikh Financial Advisory Services Limited. Following Parag Parikh’s death in the 3 May 2015 Omaha road accident, the philosophy has been continuously developed and codified by Chief Investment Officer Rajeev Thakkar (the lead fund manager of the Parag Parikh Flexi Cap Fund since launch on 24 May 2013), Head of Research Raunak Onkar, and the broader PPFAS investment team, with continuing oversight from Chairman and CEO Neil Parikh .

Value investing at PPFAS

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

Value investing at PPFAS is the foundational investment doctrine of PPFAS Mutual Fund , a SEBI-registered asset management company whose entire scheme range, beginning with the Parag Parikh Flexi Cap Fund launched on 24 May 2013, has been constructed around the value-investing framework codified by Benjamin Graham in Security Analysis (1934) and The Intelligent Investor (1949), and subsequently developed by Warren Buffett and Charlie Munger at Berkshire Hathaway. The doctrine, as practised at PPFAS, treats equity ownership as fractional ownership of underlying businesses, demands an estimate of intrinsic value before any commitment of capital, requires a meaningful margin of safety between estimated intrinsic value and market price at the point of entry, and tolerates extended holding periods and material cash balances rather than forcing capital deployment at uncompelling valuations.