Value Investing on WebNotes

Bajaj Holdings at PPFCF

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

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Bajaj Holdings and Investment Limited is among the long-running domestic equity anchors of the Parag Parikh Flexi Cap Fund (PPFCF). The position has appeared in PPFCF factsheets across multiple cycles and is widely cited as one of the textbook expressions of the PPFAS value investing approach to holding-company structures. Bajaj Holdings owns large stakes in Bajaj Auto Limited and Bajaj Finserv Limited (the holding parent of Bajaj Finance and the Bajaj insurance businesses) and trades at a structural discount to the underlying intrinsic value of those stakes.

Berkshire Hathaway class B at PPFCF (historic)

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

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Berkshire Hathaway Inc. class B shares have appeared periodically in the foreign-equity sleeve of the Parag Parikh Flexi Cap Fund (PPFCF) over the scheme’s history. Unlike the four continuously held technology anchors, Alphabet at PPFCF , Microsoft at PPFCF , Amazon at PPFCF and Meta Platforms at PPFCF , Berkshire has been a periodic rather than continuous holding. The position has appeared and disappeared from various factsheets depending on valuation, currency considerations and the relative attractiveness of other foreign opportunities.

Cash holdings as portfolio tool at PPFAS

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

The cash holdings doctrine at PPFAS is the deliberate willingness of the PPFAS Mutual Fund investment team to hold material cash and cash-equivalent positions in the Parag Parikh Flexi Cap Fund and related equity schemes when management has assessed equity valuations as broadly uncompelling. The doctrine has been operationalised during the 2024 to 2026 period through PPFCF cash levels of approximately 18 to 25 per cent of corpus, materially higher than the near-fully-invested positioning of peer Indian flexi-cap funds where cash levels are typically below 5 per cent. The willingness to hold material cash is one of the most structurally distinctive features of PPFAS within the Indian mutual fund industry , and is a direct application of the value-investing principle that capital should not be deployed where the margin of safety threshold cannot be established at the entry point.

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.

Focused portfolio approach at PPFAS

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

The focused portfolio approach at PPFAS is the deliberate portfolio-construction discipline through which the Parag Parikh Flexi Cap Fund and related schemes at PPFAS Mutual Fund maintain a compact portfolio of typically 25 to 37 stocks across Indian and international holdings, materially more concentrated than the 50 to 80 stocks typical of peer Indian flexi-cap funds. The approach is anchored in the focused-investing tradition articulated by Charlie Munger at Berkshire Hathaway, by Philip Fisher in Common Stocks and Uncommon Profits (1958), and by Robert Hagstrom in The Warren Buffett Portfolio: Mastering the Power of the Focus Investment Strategy (1999, Wiley), and it operationalises the principle that meaningful portfolio outperformance requires that each holding be a material contributor to performance rather than a diversification-driven dilution of the highest-conviction views.

Infosys at PPFCF

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

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Infosys Limited is among the periodic Indian-IT-services holdings of the Parag Parikh Flexi Cap Fund (PPFCF). The position has appeared in PPFCF factsheet portfolio listings across multiple cycles, alongside other technology-sector holdings such as TCS at PPFCF , HCL Technologies at PPFCF and Persistent Systems at PPFCF .

The Infosys thesis combines several elements of the broader PPFAS investment philosophy . First, business-quality: Infosys is among the world’s largest IT services companies, with a diversified client base, strong delivery capability, deep digital and cloud transformation expertise and dollar-revenue exposure that provides natural rupee-depreciation hedging. Second, cyclical valuation-driven entry: the team has typically built or added to the position during cyclical compression windows when valuations have moved below long-term averages.

Intrinsic value estimation methodology at PPFAS

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

The intrinsic value estimation methodology at PPFAS is the systematic framework through which the investment team at PPFAS Mutual Fund estimates the fundamental value of equity securities considered for inclusion in the Parag Parikh Flexi Cap Fund and the broader scheme range. The methodology operationalises the value-investing principle that price and value are distinct concepts, with intrinsic value derived from the discounted stream of future cash flows that the underlying business is expected to generate. The methodology is documented at amc.ppfas.com/schemes/investment-process/ and is operationalised by Chief Investment Officer (Equity) Rajeev Thakkar , Head of Research Raunak Onkar , equity fund manager Rukun Tarachandani, and the broader PPFAS research team.

Low portfolio turnover discipline at PPFAS

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

The low portfolio turnover discipline at PPFAS Mutual Fund is a structural operational characteristic of the Parag Parikh Flexi Cap Fund and the AMC’s other equity-oriented schemes, under which annual portfolio turnover is typically maintained substantially below 25 per cent. The discipline is one of the most distinctive operational features of PPFAS within the Indian flexi-cap and broader active-equity mutual fund category, where peer-fund turnover ratios typically range between 60 per cent and 200 per cent annually, with the higher end found in momentum-and-quantitative strategies.

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 .

Maruti Suzuki at PPFCF

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

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Maruti Suzuki India Limited is among the recurring domestic equity holdings of the Parag Parikh Flexi Cap Fund (PPFCF). The position has appeared in PPFCF factsheet portfolio listings across multiple disclosure cycles, alongside ICICI Bank at PPFCF , Mahindra and Mahindra at PPFCF , Hero MotoCorp, Bajaj Holdings at PPFCF and other long-running Indian anchors that the PPFAS Mutual Fund team has held through multiple cycles.

The Maruti Suzuki thesis combines several elements of the broader PPFAS investment philosophy . First, market-share leadership: Maruti Suzuki has been the largest passenger-vehicle manufacturer in India by volume since the mid-1980s, with current market share of approximately 40 to 42 per cent. Second, dealer-network scale: the company’s distribution and service footprint is the deepest in India, providing a structural moat that newer entrants struggle to replicate. Third, disciplined valuation-driven entry: the PPFAS team has typically built or added to the position during periods of cyclical weakness when valuations have compressed below long-term averages.

Neil Parikh

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

Neil Parag Parikh is the Chairman and Chief Executive Officer of PPFAS Asset Management Private Limited, the asset management company of PPFAS Mutual Fund . The son of the late founder Parag Parikh and the second-generation leader of the broader PPFAS group, Neil Parikh succeeded his father as Chairman and CEO following the latter’s death in a road accident in Omaha, Nebraska on 3 May 2015. Under Neil Parikh’s leadership through 2015 to 2026, PPFAS Mutual Fund has substantially expanded its scheme portfolio from a single equity scheme to seven active schemes, and the AMC’s assets under management have grown from approximately Rs 5,000 crore in 2018 to over Rs 1.4 lakh crore by mid-2026.

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.

Parag Parikh ELSS Tax Saver Fund

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

The Parag Parikh ELSS Tax Saver Fund is an open-ended equity-linked savings scheme of PPFAS Mutual Fund , launched on 4 July 2019 by PPFAS Asset Management Private Limited as the third open-ended scheme in the AMC’s product line, after the flagship Parag Parikh Flexi Cap Fund (24 May 2013) and the Parag Parikh Liquid Fund (9 May 2018). It was originally launched as the Parag Parikh Tax Saver Fund and subsequently renamed to Parag Parikh ELSS Tax Saver Fund to align with the AMFI and SEBI directive that all equity-linked savings schemes carry the standardised “ELSS” prefix in scheme nomenclature. The scheme is benchmarked to the Nifty 500 Total Return Index (Nifty 500 TRI ).

Parag Parikh Flexi Cap Fund

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

The Parag Parikh Flexi Cap Fund (commonly PPFCF) is the flagship equity mutual fund scheme of PPFAS Mutual Fund , formally an open-ended equity-oriented mutual fund scheme of the Flexi Cap category under the SEBI Mutual Funds Regulations 1996 framework. PPFCF was launched on 24 May 2013 by PPFAS Asset Management Private Limited and has been continuously managed by Rajeev Thakkar (Chief Investment Officer of PPFAS Mutual Fund) since its launch, with Raunak Onkar (Head of Research) and Raj Mehta (debt and overseas allocation) as co-fund managers.

PPFAS approach to IPOs and new listings

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

The PPFAS approach to IPOs and new listings is the body of policy and discipline through which PPFAS Mutual Fund approaches Indian equity initial public offerings (IPOs) and other primary-market new-listings opportunities. The approach is characterised by a substantively cautious overall stance, a structural preference for established public-market track records over recent listings, the deliberate avoidance of grey-market-premium-driven and IPO-allotment-flipping speculation, and periodic participation in selected IPOs where the value-investing framework , the margin of safety discipline and the focused portfolio construction principles are satisfied.

PPFAS approach to small-cap and micro-cap allocation

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

The PPFAS approach to small-cap and micro-cap allocation is the body of policy and operational practice through which PPFAS Mutual Fund , at the Parag Parikh Flexi Cap Fund and related schemes, addresses the small-cap (typically the 251st to 500th by market capitalisation) and micro-cap (typically below the 500th by market capitalisation) segments of the Indian listed equity universe. The approach is characterised by theoretical permission within the Flexi Cap regulatory framework combined with practical structural constraints that limit small-cap and micro-cap exposure to materially below the percentages typically observed at peer Flexi Cap and Multi-Cap funds.

PPFAS foreign core rationale: Alphabet, Microsoft, Meta, Amazon

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

The PPFAS foreign core rationale is the body of investment reasoning through which PPFAS Mutual Fund has concentrated the overseas equity allocation of the Parag Parikh Flexi Cap Fund in a tightly limited core of US-listed mega-cap technology and consumer-digital franchises, principally Alphabet Inc. , Microsoft Corporation , Amazon.com Inc. and Meta Platforms Inc. , with Berkshire Hathaway Class B appearing as an additional core holding through earlier periods. The foreign core rationale is structurally consistent with the broader PPFAS investment philosophy of value investing , margin of safety , focused portfolio construction and the owner mindset framework, and it has been continuously articulated by Chief Investment Officer Rajeev Thakkar , Head of Research Raunak Onkar and Chairman and CEO Neil Parikh since the May 2013 launch of the scheme.

PPFAS Mutual Fund

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

PPFAS Mutual Fund is an Indian asset management company , formally constituted as PPFAS Asset Management Private Limited (the AMC) and sponsored by Parag Parikh Financial Advisory Services Limited (PPFAS Ltd, the sponsor). The fund house is among the most distinctively positioned AMCs in India, operating a deliberately small scheme portfolio of seven active funds anchored by the Parag Parikh Flexi Cap Fund (PPFCF), a globally diversified equity scheme that combines Indian equities with a substantial allocation to international stocks (predominantly US-listed mega-cap technology and financial companies) alongside a cash and arbitrage overlay.

PPFAS stance on derivatives, futures and options

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

The PPFAS stance on derivatives, futures and options is the deliberate doctrinal position adopted at PPFAS Mutual Fund that the equity-oriented schemes do not use directional futures or options for portfolio positioning, leverage, or speculative purposes. The stance is publicly articulated on the official philosophy page at www.ppfas.com/about/our-philosophy/ and is operationalised across the Parag Parikh Flexi Cap Fund , the Parag Parikh ELSS Tax Saver Fund , the Parag Parikh Conservative Hybrid Fund , and the recently launched Parag Parikh Large Cap Fund. The doctrine is structurally tied to the broader PPFAS investment philosophy of value-investing and long-duration business ownership, and reflects the principle that equity investing should be direct fractional ownership of underlying businesses rather than synthetic exposure through derivative contracts.

Rajeev Thakkar

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

Rajeev Thakkar is the Chief Investment Officer (Equity) and a Director of PPFAS Asset Management Private Limited (the AMC of PPFAS Mutual Fund ), and the lead fund manager of the Parag Parikh Flexi Cap Fund (PPFCF) since its launch on 24 May 2013. Rajeev Thakkar has been associated with the broader PPFAS group since 2001, predating the mutual fund launch by approximately 12 years, and has been the principal continuity figure of PPFAS’s investment process through the May 2015 transition following the death of founder Parag Parikh.

Stocks to Riches (2005) by Parag Parikh

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

Stocks to Riches: Insights on Investor Behaviour is a 2005 book authored by Parag Parikh , the founder of PPFAS Mutual Fund and of Parag Parikh Financial Advisory Services Limited. The book was published by Tata McGraw-Hill Education (the Indian subsidiary of McGraw-Hill Education at the time, later restructured as McGraw Hill India). It is the first of two books written by Parag Parikh, the second being Value Investing and Behavioral Finance: Insights into Indian Stock Market Realities (2009), also published by Tata McGraw-Hill. Both books are referenced on the PPFAS investor education programme Knowledge Centre at amc.ppfas.com/knowledge-center/parags-views/books/ .

Value Investing and Behavioral Finance (2009) by Parag Parikh

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

Value Investing and Behavioral Finance: Insights into Indian Stock Market Realities is a book by Parag Parikh , the founder of PPFAS Mutual Fund , first published in 2009 by Tata McGraw-Hill Education with ISBN 978-0-07-007763-8. The book is one of the two principal published works of the founder, the other being the earlier Stocks to Riches: Insights on Investor Behaviour (2005, also Tata McGraw-Hill). Value Investing and Behavioral Finance is the more substantive of the two volumes, applying the international behavioural-finance literature to Indian stock market conditions and articulating a value-investing framework that has remained foundational to the PPFAS investment philosophy and to the Indian value-investing community.

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.

Quantum Mutual Fund

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

Quantum Mutual Fund is an Indian asset management company, formally incorporated as Quantum Asset Management Company Private Limited, founded by Ajit Dayal and sponsored by Quantum Advisors Private Limited. The fund house is distinguished in Indian mutual fund history for having pioneered the no-commission, direct-plan model well before SEBI mandated direct plans industry-wide in 2013. Quantum MF launched its schemes in 2006 as direct-only products without distributor commissions, operating on the principle that investors should not bear the cost of distribution within the scheme’s expense ratio.

Sankaran Naren

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

Sankaran Naren (commonly referred to as S. Naren) is the Executive Director and Chief Investment Officer of ICICI Prudential Asset Management Company , one of India’s two largest mutual fund houses by assets under management. He is widely regarded as one of the most consistently articulate advocates of value and contrarian investing within the Indian mutual fund industry. Naren is the lead fund manager or co-manager of several of ICICI Prudential AMC’s largest schemes, including ICICI Prudential Value Discovery Fund, ICICI Prudential Balanced Advantage Fund, and ICICI Prudential Multicap Fund. His philosophy of buying assets when they are unloved and avoiding assets when they are euphoric has made him a reference point for value-oriented investors in India across multiple market cycles.

Value mutual fund

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

A value mutual fund in India is an open-ended equity scheme that must follow a value investment strategy – selecting stocks that are trading at a discount to their estimated intrinsic value – and maintain a minimum of 65% of its total assets in equity and equity-related instruments. SEBI ’s October 2017 scheme categorisation circular mandated that value funds be distinct from growth, blend, or other investment-style funds, requiring AMCs to specify and adhere to a value investment philosophy in their scheme information documents. Each AMC may operate only one value fund or one contra fund (but not both).