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Over the years, mutual funds have become a popular investment tool. Although they come with inherent risks, mutual fund investments are arguably safer than investing in stocks since they are managed by investment experts. Parag Parikh, a popular Asset Management Company, has come up with a new fund through an NFO. The Parag Parikh Dynamic Asset Allocation Fund. In this blog, we will learn more about the Parag Parikh NFO and its open-ended asset allocation fund.

Parag Parikh Dynamic Asset Allocation Fund NFO: highlights 

- The new fund offer (NFO) is open for subscription until February 22 and will re-open for continuous sale and repurchase on February 28.

- The scheme's investment objective is to generate income/long-term capital appreciation through investments in equity, equity derivatives, and fixed-income instruments, with dynamic allocation to manage downside risk.

- The scheme will be benchmarked against the CRISIL Hybrid 50+50 Moderate Index.

- Fund managers include Rajeev Thakkar, Raunak Onkar, Raj Mehta, Rukun Tarachandani, and Mansi Kariya.

- Asset allocation: 0-100% in equity and equity derivatives, 0-100% in debt securities, and money market instruments including units of debt-oriented mutual fund schemes.

How much can you invest in the PPFAS NFO?

- Minimum application amount: Rs 5,000, with subsequent investments in multiples thereof. Minimum additional purchase amount: Rs 500.

- Minimum application amount for monthly SIP: Rs 1,000; for quarterly SIP: Rs 3,000.

- Direct and regular plans available, with growth and IDCW options.

Parag Parikh Dynamic Asset Allocation Fund: investment strategy

- Equity portfolio: Bottom-up approach to identify companies with sustainable competitive advantages.

- Debt portfolio: Yield curve exploitation based on macroeconomic analysis including liquidity, interest rates, and inflation.

Risk profile

- Moderate risk profile according to the scheme's riskometer.

- Provides indexation benefits if held for more than three years.

- Equity allocation ranges between 35% and 65% for indexation benefits, but the fund aims to maintain it around 35-40%.

Conclusion

Parag Parikh Dynamic Asset Allocation Fund offers investors a tax-efficient, dynamically managed portfolio aiming for income and long-term capital appreciation while actively managing downside risk. If you wish to invest in mutual funds, research is crucial. Though this blog provides information on the Parag Parikh Dynamic Asset Allocation Fund NFO, it is not financial advice. Consult with your financial advisor before investing in mutual funds.

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