SEBI Overseas Cap on WebNotes

International diversification at PPFAS

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

International diversification is the single most distinctive doctrine of the PPFAS Mutual Fund investment philosophy and the structural feature that differentiates the Parag Parikh Flexi Cap Fund (PPFCF) and the Parag Parikh ELSS Tax Saver Fund from the substantial majority of Indian equity-oriented mutual fund schemes. The doctrine permits PPFCF and the ELSS Tax Saver Fund to allocate up to 35 per cent of corpus to overseas equity, principally US-listed mega-cap technology and financial companies, providing Indian retail investors with exposure to global business franchises unavailable on Indian exchanges.

PPFAS SEBI overseas investment cap incident (January to June 2022)

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

The PPFAS SEBI overseas-investment-cap incident of January to June 2022 was the most operationally consequential regulatory event affecting PPFAS Mutual Fund since the launch of the Parag Parikh Flexi Cap Fund (PPFCF) in May 2013. The incident occurred when aggregate Indian mutual-fund overseas-investment positions approached the USD 7 billion industry-wide cap under the broader SEBI MF overseas investment cap framework. As PPFCF held approximately Rs 5,588 crore (around 28 per cent of AUM) in foreign securities at the time, PPFAS was directly affected.

PPFCF vs international FoFs for global exposure

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

The Parag Parikh Flexi Cap Fund (PPFCF) and international Fund-of-Funds (FoFs) are two structurally different vehicles available to Indian investors seeking global equity exposure within the regulated mutual fund wrapper. PPFCF, the flagship scheme of PPFAS Mutual Fund , embeds up to 35 per cent overseas-listed equity allocation within a single Indian equity-oriented flexi cap scheme. International FoFs, such as the various S&P 500 FoF and Nasdaq 100 FoF products offered by AMCs including Motilal Oswal Mutual Fund , ICICI Prudential Mutual Fund , Mirae Asset Mutual Fund , Kotak Mahindra Mutual Fund and others, invest in underlying overseas index ETFs to provide pure international exposure.