Parag Parikh Large Cap Fund

The Parag Parikh Large Cap Fund is an open-ended equity scheme of PPFAS Mutual Fund (SEBI registration MF/069/12/01) in the SEBI large cap category, required to keep at least 80 per cent of its assets in the 100 largest listed Indian companies by full market capitalisation and benchmarked to the Nifty 100 Total Return Index. Units were allotted on 4 February 2026 after a New Fund Offer that ran from 19 to 30 January 2026, which makes it the seventh and newest PPFAS scheme.

The fund held Rs 866.24 crore at 30 September 2026, according to the PPFAS factsheet for that month, which is 0.22 per cent of the Rs 3,90,384.40 crore that AMFI reported across 35 large cap schemes on the same date. It is small beside the Parag Parikh Flexi Cap Fund , which held Rs 1,45,070.50 crore that month.

Its scheme information document , dated 10 December 2025, calls it “an actively managed equity scheme”. The investor material PPFAS published in October 2026 describes something narrower: a portfolio weighted by free-float market capitalisation, kept within 10 per cent active share of the Nifty 100, and run with what PPFAS calls smart execution strategies, which change how and when the fund trades, not what it owns.

The flyer states the aim as low-cost, broad large cap exposure with trading and impact costs managed and returns kept close to the index. The base expense ratio is 0.14 per cent on the direct plan and 0.48 per cent on the regular plan from 1 April 2026, and there is no exit load. Six fund managers are named, headed by Rajeev Thakkar , the AMC’s Chief Investment Officer for equity.

Launch and New Fund Offer

The Parag Parikh Large Cap Fund was approved by the trustees of PPFAS Mutual Fund on 20 June 2025 and launched through a New Fund Offer from 19 to 30 January 2026 at Rs 10 a unit, according to the scheme information document of 10 December 2025, which carries the scheme code PPFA/O/E/LCF/25/11/0007. The document was signed by Priya Hariani, Chief Compliance Officer and Company Secretary.

Table: Parag Parikh Large Cap Fund launch timeline, compiled by webnotes.in from the PPFAS scheme information document, factsheets and notices.

The twelve-day offer period sat inside the SID’s own limits of at least three working days and at most 15 calendar days. The earliest published asset figure is the February 2026 factsheet’s Rs 404.89 crore at 27 February 2026. The scheme had more than doubled to Rs 866.24 crore by 30 September 2026, a 2.14 times increase that includes net inflows and market movement. Each PPFAS scheme’s offer window is listed in the PPFAS scheme launch timeline .

Investment mandate and asset allocation

The Parag Parikh Large Cap Fund’s stated objective is “to generate long term capital appreciation and income distribution to investors by predominantly investing in equity and equity related instruments of large cap companies”, with no assurance that it will be achieved, according to its scheme information document. It must hold 80 to 100 per cent of its net assets in equity and equity-related securities of large cap companies, under the asset allocation table in its scheme information document of 10 December 2025. The SID defines the large cap universe as the 1st to 100th company by full market capitalisation, using the list AMFI publishes, and requires the portfolio to be rebalanced within one month of each update to that list. The 80 per cent floor is the large cap category rule SEBI set in circular SEBI/HO/IMD/DF3/CIR/P/2017/114 of 6 October 2017 (SEBI scheme rationalisation circular 2017 ), since consolidated into SEBI’s master circulars for mutual funds.

Table: Parag Parikh Large Cap Fund asset allocation, from the scheme information document dated 10 December 2025, as a percentage of net assets.

Four further limits in the same document bound the strategy:

• Foreign securities: up to USD 100 million, and up to USD 30 million in overseas ETFs, inside the PPFAS-wide limit of USD 1 billion; the SID cites the SEBI master circular of 27 June 2024 for these limits, which SEBI replaced with the master circular of 20 March 2026 (see SEBI’s overseas investment cap for mutual funds ). The scheme held no foreign equity at 30 September 2026.
• Derivatives: up to 100 per cent of total assets for hedging, and up to 50 per cent of the scheme’s equity assets in equity derivatives for non-hedging purposes. Stock and index futures are part of the execution approach described below.
• Securities lending: up to 20 per cent of net assets, with no more than 5 per cent of the equity portfolio’s market value placed through a single intermediary.
• Other mutual funds: the scheme may not invest in a fund of funds, and inter-scheme investment across PPFAS is capped at 5 per cent of the fund house’s net asset value.

SEBI reclassified REITs as equity-related instruments from 1 January 2026, by circular HO/24/13/12(1)2025-IMD-POD-2/I/157/2025 of 28 November 2025, which PPFAS implemented by an addendum of 24 December 2025. The SID’s separate REIT and InvIT row predates that change. The large cap category’s wider rules are covered in large cap mutual funds in India .

Strategy and smart execution strategies

The Parag Parikh Large Cap Fund aims at large cap returns close to the Nifty 100 at low cost, with the fund managers deciding how to build the position, not which stocks to back. The investor flyer PPFAS dated 9 October 2026 says stock selection is “rules driven” from the Nifty 100 TRI, that each stock’s weight is “based on stock’s free float market capitalization”, that “weight of any holding [is] capped at 10%”, and that the fund aims to keep “overall active share low (under 10%)”.

PPFAS groups the active part under the label smart execution strategies. The same flyer lists five:

1. Single-stock futures: when a stock’s near-month futures trade below the cash price, the fund may hold the exposure through futures instead.
2. Index futures: the same trade at index level, when Nifty futures trade below the index.
3. Merger arbitrage: when an index company is merging, the fund may buy the stock at a discount to the swap ratio.
4. Smarter rebalancing: when the Nifty 100 changes, the fund may rebalance over days rather than on the index date.
5. Opportunistic active share: around demergers and special situations, entries and exits may be phased to limit impact cost, with active share kept under 10 per cent.

The September 2026 factsheet records the fourth in use. The Nifty 100 was rebalanced on 29 September, and the fund “executed the rebalancing trades gradually over 15 to 20 days, rather than on a single day, to mitigate the impact cost that is typically seen on rebalancing day”. Its asset mix that month shows the other instruments at the margin: 0.15 per cent in special situations and 0.06 per cent in mutual fund units, beside 99.36 per cent in core equity.

The scheme information document’s own strategy text is broader than the flyer. It describes a “disciplined yet flexible long term approach” across large caps “without any sector bias”, with room for mid and small caps, foreign shares and debt. The SID is the binding document; the flyer describes how PPFAS currently uses the room it gives. The reasoning PPFAS gave for launching a near-index large cap fund is examined in PPFAS Large Cap Fund rationale .

Semi-passive label

“Semi-passive” does not appear in the scheme information document. Earlier versions of this page used it, along with a description of smart execution strategies as valuation and quality overlays that tilt weights towards cheaper or better companies. Neither matches the PPFAS documents: the flyer describes weights set by free-float market capitalisation, and the execution tactics listed above, not a stock-picking overlay. SEBI classes the scheme as a large cap fund and its SID calls it actively managed, which is how it is regulated and how its returns are disclosed.

Fund managers

Six fund managers run the Parag Parikh Large Cap Fund, all of them since inception on 4 February 2026, according to the PPFAS factsheet for September 2026. Four are equity managers and two are debt managers, the same team, minus Mansi Kariya, that manages the Parag Parikh Flexi Cap Fund .

Table: Parag Parikh Large Cap Fund managers, from the PPFAS factsheet for September 2026 and the scheme information document dated 10 December 2025.

Raj Mehta is an equity manager on this scheme. Some pages, including an earlier version of this one, list him as a debt manager; the SID records his appointment as Fund Manager, Equity, with effect from 1 September 2025. The two debt managers cover the money market and debt sleeve the scheme may hold up to 20 per cent, which stood at 0.43 per cent of net assets in TREPS, receivables and payables at 30 September 2026.

Assets under management

The Parag Parikh Large Cap Fund held Rs 866.24 crore at 30 September 2026 and averaged Rs 865.59 crore over September, according to the PPFAS factsheet. AMFI’s monthly report for September 2026 put the large cap category at Rs 3,90,384.40 crore across 35 schemes, so the PPFAS fund held 0.22 per cent of category assets, against an average of Rs 11,153.84 crore a scheme.

Table: Parag Parikh Large Cap Fund assets against the SEBI large cap category. The two calculated rows divide the PPFAS and AMFI figures for 30 September 2026.

Its share of the PPFAS fund house was about half a per cent of the Rs 1,65,302.16 crore sum of month-end scheme AUM at 30 September 2026 shown in the PPFAS Mutual Fund entry.

Portfolio

The Parag Parikh Large Cap Fund’s portfolio at 30 September 2026 was 99.36 per cent core equity, led by private sector banks, and its top 10 holdings made up 42.24 per cent of net assets.

Table: Parag Parikh Large Cap Fund top 10 equity holdings at 30 September 2026, from the PPFAS factsheet. The total is a webnotes.in sum.

By sector, banks were 24.99 per cent, followed by petroleum products at 7.04 per cent, IT software at 6.68 per cent, finance at 6.34 per cent and automobiles at 6.17 per cent. The largest September additions were BSE Limited (0.88 per cent of AUM), Vedanta Aluminium Metal (0.44 per cent) and HDFC Bank (0.41 per cent); it exited Indian Hotels, REC, Lodha Developers, United Spirits and Shree Cement in the same month.

Returns and risk measures

The Parag Parikh Large Cap Fund’s direct plan was down 8.91 per cent from allotment to 30 September 2026, against a fall of 9.26 per cent in the Nifty 100 TRI over the same period, according to the PPFAS factsheet. The direct growth NAV was Rs 9.1090 and the regular growth NAV Rs 9.0857, both below the Rs 10 offer price.

Table: Parag Parikh Large Cap Fund returns, from the PPFAS factsheet for September 2026. The since-allotment figures equal the change in each plan’s NAV from Rs 10.

The six-month figures show what near-index construction costs and saves. The direct plan trailed the benchmark by 0.03 percentage points over six months and the regular plan by 0.24 points. The 0.21 point gap between the two plans is somewhat more than the 0.17 points that half a year of the 0.34 point base expense ratio difference would produce. Since allotment both plans were ahead of the index, the direct plan by 0.35 points and the regular plan by 0.12 points.

The factsheet’s risk measures for September 2026 were a beta of 0.99, a standard deviation of 22.28 per cent, a Sharpe ratio of -0.75 and an information ratio of -1.31, with the risk-free rate taken as 5.00 per cent. A beta of 0.99 is what a portfolio close to its index should show. All four figures rest on less than eight months of data. Background on these measures is in beta , Sharpe ratio and standard deviation .

Expense ratio, loads and investment limits

The Parag Parikh Large Cap Fund charges a base expense ratio of 0.14 per cent a year on the direct plan and 0.48 per cent on the regular plan, effective 1 April 2026, according to a PPFAS notice dated 24 March 2026. The notice set the rates under Regulation 66 of the SEBI (Mutual Funds) Regulations 2026 , replacing 0.13 and 0.47 per cent set under the 1996 regulations. The September 2026 factsheet shows both rates unchanged.

Table: Parag Parikh Large Cap Fund base expense ratio, from the PPFAS notice for change in base expense ratio dated 24 March 2026.

Under the 2026 regulations brokerage and transaction costs are charged above the base expense ratio and capped separately, so the base rate is not the whole cost; the mutual fund TER entry sets out the slabs. In February 2026, under the 1996 regulations, the factsheet’s month-end total expense ratio was 0.56 per cent for the regular plan and 0.16 per cent for the direct plan. That 0.40 point gap, 0.34 points on the base ratio from 1 April 2026, is mainly the distributor commission in the regular plan, explained in regular versus direct plans .

Other terms, from the scheme information document of 10 December 2025:

Table: Parag Parikh Large Cap Fund investment terms, from the scheme information document dated 10 December 2025 and the September 2026 factsheet.

A nil exit load sets it apart from the PPFAS flagship, whose units carry 2 per cent up to 365 days and 1 per cent from 366 to 730 days. The SID’s default rules also protect investors who fill in forms incorrectly: a Regular Plan application with no distributor code, or with an invalid ARN, is processed in the Direct Plan.

Taxation under the Income-tax Act 2025

The Parag Parikh Large Cap Fund is an equity oriented fund for capital gains tax, because it keeps at least 65 per cent in listed Indian equity shares, and the PPFAS Tax Reckoner for 2026-27 classifies it in the same group as the Flexi Cap and ELSS Tax Saver funds. Since 1 April 2026 the Income-tax Act 2025 (Act 30 of 2025) governs gains on redemption, in place of the Income-tax Act 1961 .

Table: tax on redemption of Parag Parikh Large Cap Fund units, Income-tax Act 2025 and PPFAS Tax Reckoner 2026-27. The 12-month threshold is in section 2(101) and the equity oriented fund definition in section 198(8). Surcharge and 4 per cent health and education cess apply on top.

Two other charges apply. Securities transaction tax of 0.001 per cent is levied on the seller when units of an equity oriented fund are redeemed with the mutual fund, according to the Tax Reckoner. IDCW payouts are taxed at the investor’s slab rate, with tax deducted at source under section 393. The wider rules, including set-off of losses, are in capital gains tax in India and equity mutual fund taxation .

How to invest

Units of the Parag Parikh Large Cap Fund are bought directly from PPFAS Mutual Fund or through a distributor, and the two routes lead to the Direct and Regular plans respectively. The October 2026 flyer lists paper applications at PPFAS offices or the nearest CAMS service centre, and online purchase through MF Utilities, NSE MFSS, BSE StAR MF and myCAMS.

Table: parties to the Parag Parikh Large Cap Fund, from the PPFAS investor flyer dated 9 October 2026.

A systematic investment plan is available monthly from Rs 1,000 or quarterly from Rs 3,000, under the same SID limits as lump sums.

The September 2026 factsheet rates both the scheme and its Nifty 100 TRI benchmark Very High on the riskometer . Complaints go first to PPFAS, through the grievance policy published at amc.ppfas.com and the investor helpline, and, if unresolved, to SEBI through SCORES .

Comparison with Nifty 100 index funds and active large cap funds

The Parag Parikh Large Cap Fund sits between a Nifty 100 index fund and a conventional active large cap fund: it is built to hold close to the index’s stocks and weights, but is regulated and disclosed as an active scheme and is free to deviate in timing and instrument. The trade-off for an investor is cost against tracking certainty.

Table: Parag Parikh Large Cap Fund against a Nifty 100 index fund, compiled by webnotes.in from the PPFAS SID, factsheet and flyer and the SEBI index fund category.

The PPFAS case rests on the execution tactics recovering more than they cost. Over its first eight months the direct plan was 0.35 percentage points ahead of the Nifty 100 TRI since allotment and 0.03 points behind over six months, too short a record to settle it either way. A head-to-head on cost and tracking is in PPFAS Large Cap Fund versus Nifty 100 index funds , and the general argument in large cap fund versus index fund and active versus passive equity in India .

Against the Parag Parikh Flexi Cap Fund , the difference lies in the mandate; the team is almost the same. The flagship picks about 37 positions across market capitalisations and up to 35 per cent abroad; the Large Cap Fund is built to hold the Nifty 100 at close to index weights. The SID lists only the Flexi Cap and ELSS Tax Saver funds as existing PPFAS equity schemes it must be distinguished from.

Skin in the game

PPFAS insiders held Rs 6.45 crore in the Parag Parikh Large Cap Fund at 30 September 2026, according to the factsheet for that month. Separately, the units held by designated employees under SEBI’s rule aligning their interests with unitholders, now in the master circular of 20 March 2026, were 6,136.65 direct plan units worth Rs 55,388.82. The fund house’s wider practice is described in PPFAS sponsor commitment and skin in the game .

See also

• PPFAS Mutual Fund
• Parag Parikh Flexi Cap Fund
• Parag Parikh ELSS Tax Saver Fund
• Parag Parikh Liquid Fund
• Parag Parikh Conservative Hybrid Fund
• Parag Parikh Arbitrage Fund
• Parag Parikh Dynamic Asset Allocation Fund
• PPFAS Large Cap Fund rationale
• PPFAS Large Cap Fund versus Nifty 100 index funds
• PPFAS scheme launch timeline
• PPFAS investment philosophy
• PPFAS Asset Management Private Limited
• PPFAS Trustee Company Private Limited
• Parag Parikh Financial Advisory Services Limited
• PPFAS sponsor commitment and skin in the game
• Rajeev Thakkar
• Raunak Onkar
• Raj Mehta
• Rukun Tarachandani
• Tejas Soman
• Aishwarya Dhar
• Large cap mutual funds in India
• Large cap fund versus index fund
• Active versus passive equity in India
• Nifty 100 index fund
• Index funds in India
• Active share
• Tracking error
• Information ratio
• Beta in mutual funds
• Sharpe ratio
• Standard deviation of a mutual fund
• Mutual fund riskometer
• Mutual fund TER in India
• Total expense ratio
• Mutual fund exit load
• Regular versus direct plan
• IDCW
• SIP mutual funds in India
• New Fund Offer
• Scheme information document
• SEBI (Mutual Funds) Regulations 2026
• SEBI master circular for mutual funds 2026
• SEBI scheme rationalisation circular 2017
• SEBI overseas investment cap for mutual funds
• Income-tax Act 2025
• Capital gains tax in India
• Equity mutual fund taxation
• Section 112A
• Section 111A
• Securities transaction tax
• CAMS
• Nifty 50
• National Stock Exchange

External references

• PPFAS Mutual Fund, Parag Parikh Large Cap Fund scheme page: https://amc.ppfas.com/schemes/parag-parikh-large-cap-fund/
• PPFAS Mutual Fund, Scheme Information Document, Parag Parikh Large Cap Fund: https://amc.ppfas.com/pplcf/pdf/SID_Parag_Parikh_Large_Cap_Fund.pdf
• PPFAS Mutual Fund, monthly factsheets: https://amc.ppfas.com/downloads/factsheet/
• PPFAS Mutual Fund, total expense ratio disclosure: https://amc.ppfas.com/statutory-disclosures/total-expense-ratio-TER/
• AMFI, monthly reports: https://www.amfiindia.com/research-information/amfi-monthly
• SEBI, Categorization and Rationalization of Mutual Fund Schemes, 6 October 2017: https://www.sebi.gov.in/legal/circulars/oct-2017/categorization-and-rationalization-of-mutual-fund-schemes_36199.html
• NSE Indices, Nifty 100: https://www.niftyindices.com/

References

1. PPFAS Mutual Fund, Scheme Information Document, Parag Parikh Large Cap Fund, dated 10 December 2025 (scheme code PPFA/O/E/LCF/25/11/0007): type, objective, asset allocation, strategy, fund managers, loads and minimums.
2. PPFAS Mutual Fund, Factsheet for September 2026: AUM, NAV, returns, holdings, sectors, risk measures, fund manager designations, insider holdings.
3. PPFAS Mutual Fund, Factsheet for February 2026: AUM at 27 February 2026 and month-end total expense ratio.
4. PPFAS Mutual Fund, Notice for change in the base expense ratio, 24 March 2026, effective 1 April 2026 under Regulation 66 of the SEBI (Mutual Funds) Regulations 2026.
5. PPFAS Mutual Fund, Parag Parikh Large Cap Fund investor flyer, dated 9 October 2026: smart execution strategies, weighting rules, active share, parties to the scheme.
6. PPFAS Mutual Fund, Tax Reckoner 2026-27: equity oriented classification, rates and securities transaction tax.
7. AMFI, Monthly report for September 2026: large cap fund category, 35 schemes, net AUM Rs 3,90,384.40 crore.
8. SEBI, circular SEBI/HO/IMD/DF3/CIR/P/2017/114, Categorization and Rationalization of Mutual Fund Schemes, 6 October 2017.
9. Income-tax Act 2025 (Act 30 of 2025), sections 2(101), 196, 198 and 393, Gazette of India.
10. SEBI, circular HO/24/13/12(1)2025-IMD-POD-2/I/157/2025, 28 November 2025, reclassifying REITs as equity-related instruments from 1 January 2026.