PPFAS CIO Rajeev Thakkar defended the fund's investment approach amid concerns over recent underperformance, noting that periods of weaker relative returns are normal for a value-oriented strategy that often invests in out-of-favour stocks and sectors.
After maintaining elevated cash levels during the market exuberance of 2024, Parag Parikh Flexi Cap Fund's cash allocation has declined to around 14–15% from a peak of about 25%, indicating that the fund is finding more attractive opportunities.
Thakkar believes the broader market outlook is improving after nearly two years of time correction, alongside price corrections in some segments. He expects cash levels could eventually move into single digits as more opportunities emerge.
On AI and technology, PPFAS continues to view the sell-off in IT services as a potential opportunity, while avoiding direct exposure to pure-play AI model companies such as OpenAI and Anthropic.
