In its FY26 Annual Report, Neil Parag Parikh, Chairman & CEO of PPFAS Mutual Fund, said the fund's decision to maintain a higher cash allocation due to expensive market valuations helped cushion downside during the market correction.
The flagship Parag Parikh Flexi Cap Fund declined only 0.63% in FY26, outperforming broader market indices during the correction. As valuations became more reasonable, the fund gradually started deploying its cash reserves.
PPFAS Mutual Fund continued to witness strong investor confidence, with its investor base growing 46.7% during FY26—from 49.1 lakh to 72.0 lakh investors—while Assets Under Management (AUM) increased from ₹1.06 lakh crore to ₹1.48 lakh crore.
The management reiterated its value investing philosophy, emphasizing capital preservation, disciplined stock selection, and patience over remaining fully invested during periods of elevated valuations.
The annual report highlights PPFAS' continued focus on long-term wealth creation, even if that means temporarily holding cash when attractive investment opportunities are limited.
