Tax-aware portfolio management at PPFAS

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

Tax-aware portfolio management at PPFAS is the operational discipline through which the PPFAS Mutual Fund investment team explicitly considers the post-tax compounding effect on unitholder returns when making portfolio decisions, principally through maintenance of portfolio turnover ratios materially below the Indian flexi-cap category median. The principal manifestation of the discipline is the Parag Parikh Flexi Cap Fund portfolio turnover, which has typically been below 25 per cent annually across the May 2013 to May 2026 period, compared to peer Indian flexi-cap funds operating with portfolio turnover of 40 to 100 per cent. The low-turnover discipline produces three compounding benefits to unitholders: deferred realisation of long-term capital gains (LTCG) under Section 112A of the Income Tax Act, 1961, reduced transaction costs (brokerage and Securities Transaction Tax), and reinforced long-term-business-ownership orientation that flows from the broader PPFAS investment philosophy .

Tax Aware Portfolio on WebNotes

Tax-aware portfolio management at PPFAS