Parag Parikh Financial Advisory Services, or PPFAS, one of the most popular mutual fund houses, has announced the introduction of three new overseas equity funds. All three funds will be Fund of Funds (FoFs), focusing on global markets.
PPFAS GIFT website also mentions the launch of Parag Parikh India Flexi Cap Fund, which is likely to be a feeder fund into the existing Parag Parikh India Flexi Cap Fund. This inbound fund will target NRIs and foreigners looking to invest in India. This fund will allow them to invest in dollars without the hassles of KYC, taxation, currency risk, and repatriation of gains.
Currently, PPFAS has two equity funds in its portfolio – The Parag Parikh Flexi Cap Fund and Parag Parikh ELSS Tax Saver Fund, catering to Indian investors.
According to the PPFAS GIFT website, the three outbound funds to be launched include,
- Parag Parikh IFSC S&P 500 FOF,
- Parag Parikh IFSC Nasdaq 100 FOF and
- Active
PPFAS GIFT City Funds
The 3 new foreign funds and the Parag Parikh India Flexi Cap Fund will be offered by PPFAS Alternate Asset Managers IFSC Private Limited which is a subsidiary of Parag Parikh Financial Advisory Services Limited (PPFAS).
GIFT City IFSC
GIFT City or the Gujarat International Financial-Tec City, is India’s first IFSC, or International Financial Services Centre. It is approved and regulated by the government under the Special Economic Zones Act, 2005.
Fund of Funds
A Fund of Fund (FoF) is a diversified investment portfolio managed by experts by pooling investors’ money in a collection of mutual funds or ETFs.
There are several ETF’s listed abroad that track the S&P 500 and Nasdaq 100 indices.
The SPDR S&P 500 ETF, often known as the SPY ETF, is an ETF that tracks the S&P 500 index, which is a collection of large-cap US companies in eleven main industries. It is regarded as the best indicator of large-cap US equities. The iShares Core S&P 500 ETF and Vanguard S&P 500 ETF also track the S&P 500 index.
Invesco QQQ Trust (QQQ) is an ETF that provides access to all 100 Nasdaq businesses with a single investment, based on the Nasdaq 100 Index. QQQ’s top holdings include Apple, Microsoft, Nvidia, Amazon, Meta, and Tesla.
The full details of the four Parag Parikh IFSC offerings are still not published.