Why Parag Parikh Long Term Equity is the best investment option


Parag Parikh Long Term Equity Fund is an equity diversification scheme. Its investment universe is not limited by any regional, market capitalization, geography, self-imposed limitations, etc. However, an average of 65 per cent of its funds will be invested in listed Indian equities to benefit from the tax treatment favourable to the capital gains given to such schemes.

Investment goals — to produce long-term capital growth from actively managed portfolios of equity and equity-linked securities. The scheme will invest in Indian equity, international and related instruments, and debt securities.

Parag Parikh Long Term Equity Fund essential details

  • Type of the scheme: It is an Open-Ended Equity Scheme
  • Date of Allotment: May 24, 2013
  • AUM (₹ Crores): 2,783.54 as of January 31, 2020
  • NAV (Direct plan): 27.1963 as on Feb 28, 2020
  • NAV (Regular plan): 26.1526 as on Feb 28, 2020
  • Insider holdings: 4.80 % as on January 31, 2020

Minimum Application Amount in Parag Parikh Long Term Equity Fund

  • New Purchase: ₹ 1,000;
  • Additional Purchase: ₹ 1,000;
  • Monthly SIP: ₹ 1,000;
  • Quarterly SIP: ₹ 3,000;

Exit load in Parag Parikh Long Term Equity Fund

If the unit is redeemed within or after 365 days of the allocation date, then exit load -2.00%.

1.00% will be charged on redeeming of investment 365 days after the date of allotment of units or before 730 days.

No exit load will be charged if the investment is redeemed after 730 days from the date of allocation of units.

Fund managers:

Mr. Rajeev Thakkar will manage the domestic portion of the scheme while Raunak Onkar will manage the foreign investment portion. Raj Mehta is responsible for the investment portion of a ‘fixed income.’

This scheme is ideal only for long term ‘real’ investors

If you are an investor, however:

  • Who knows the risk of instant gratification?
  • For whom the term ‘long term’ means a minimum period of 5 years.
  • If stock prices and valuations are small, they get excited rather than repeat.
  • For whom buying stock is no different than buying a business.
  • Investors looking for high returns should invest at least 3-4 years. At the same time, these investors should also be prepared for their risk of moderate loss in their investment.

It is well known that to be successful in investing; one must invest at a time when others are afraid and greedy of others. Nevertheless, given that the Parag Parikh Long Term Equity Fund is an open-ended scheme, the ability to invest in bear markets will depend on your investor behaviour.

Parag Parikh Long Term Equity Fund is not for you if-

  • You track the mutual fund net asset value daily.
  • For you, the term ‘long term’ is only one or two years old.
  • You believe that investment should be ‘exciting.’
  • You fear the uncertainty of the stock market rather than welcoming it.
  • You believe that you have the ability to time the market.
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