Parag Parikh Flexi-Cap Fund stops accepting fresh investments

Parag Parikh Flexi-Cap Fund stops accepting fresh investments

by 5paisa Research Team Last Updated: Jan 31, 2022, 01:35 PM IST

PPFAS Mutual Fund recently released a notice cum addendum wherein Parag Parikh Flexi Cap Fund would temporarily be suspending the acceptance of fresh transactions. Read on to find out more.

The Securities and Exchange Board of India (SEBI) has advised mutual funds investing in overseas securities to stop any further investments in foreign stocks to avoid infringement of industry-wide overseas limit. As per the SEBI’s circular dated June 3, 2021, mutual funds can make overseas investments up to one billion US dollars per mutual fund. However, the overall industry capping has been set to seven billion US dollars. This is the maximum limit allowed by the Reserve Bank of India (RBI) as well.

On this front, PPFAS Asset Management Private Limited has decided to temporarily suspend the transactions with effect from February 02, 2022, in Parag Parikh Flexi Cap Fund. Therefore, any transactions in this fund received post the cut-off timing of February 1, 2022, will not be accepted and processed. As of December 2021, Parag Parikh Flexi Cap Fund has almost 29% of its portfolio invested in foreign securities.

The below table would help you understand the impact of this decision on the transactions in the Parag Parikh Flexi Cap Fund.

Sr. 
No. 

Particulars 

Impact 

Lumpsum subscription 

Shall not be accepted effective February 2, 2022 

Fresh Systematic Registration (including systematic transfer plan into the designated scheme) 

Shall not be accepted effective February 2, 2022 

Installments of Systematic Investment / Transfer Plans existing as on February 1, 2022 

Existing SIPs / STPs instalments will continue 

Switch-out or instalments of Systematic Transfer Plan existing as on February 1, 2022 

No trigger of any switch-out transactions or systematic transfer out instalments effective February 2, 2022. However, units may be allotted where the switch out transaction or the systematic transfer out leg was 
processed prior to February 2, 2022 

Investments to be made by designated employees in line with SEBI circular dated April 28, 2021 and September 20, 2021 (on 
alignment of interest of designated employees of the asset management companies with unitholders of mutual fund schemes) 

Effective February 2, 2022, investments shall be made in units of those schemes whose risk value as per the risk-o-meter is equivalent or higher than the designated schemes. 

Intra-Scheme (Regular to Direct and vice versa) switches 

No impact 

Switch-out, redemptions, registration of fresh systematic withdrawal plan, and instalments of existing systematic withdrawal plan (where the designated scheme is the source scheme) 

No impact 

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SENSEX
52,792.23
-1,416.30 (-2.61%)
Nifty 50
15,809.40
-430.90 (-2.65%)
Nifty Bank
33,315.65
-848.05 (-2.48%)

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