In April 2020, when covid hit India and the country went into lockdown, Mint spoke to industry leaders in the financial services space to understand the impact of the pandemic on their personal investment portfolios. With the passage of a year, we are going back to our respondents to see how things have panned out and whether there are any lessons for investors. In the sixth part of the series, we talk to Neil Parikh, chief executive officer, PPFAS Mutual Fund.
Parikh keeps 90% of his portfolio in equities and the balance in debt. He has stayed put throughout the covid crisis despite a soaring stock market that has caused many successive months of mutual fund redemptions.
All of his MF investments are in his own schemes (PPFAS MF). The fund house’s flagship Parag Parikh Long Term Equity (now Parag Parikh Flexicap) has delivered 73.30% over the past year (beating 68.29% given by the S&P BSE 500 and 59.28% category average) and a CAGR (compound annual growth rate) of 19.70% since it was launched in May 2013, as of 16 April 2021.
“My high equity allocation is because I’m young. I’m below 40 and have 30 or more years to go before retirement,” Parikh explained.
Parikh, who invests in debt allocation in Parag Parikh Liquid Fund, plans to shift about 40% of it to Parag Parikh Conservative Hybrid Fund, a scheme that the fund house is planning to launch soon.
“I have continued and increased my SIP (systematic investment plan) commitments as well as opportunistically deployed lump sum investments on market drops,” Parikh told Mint.
“I am conservative with my investment choices but aggressive in my allocation,” Parikh added, explaining the massive tilt towards equity taken through his asset management company’s own funds.
Parikh’s personal investment portfolio offers a template for an aggressive investor who does not time the market, staying in equity through its ups and downs.
PPFAS MF has historically invested up to 35% of its corpus in international equities (mainly US tech stocks) and that has both enhanced returns and diversified away some risk.
Parikh does not invest in gold.