Neil Parikh (Left), Chief Executive Officer, PPFAS Mutual Fund and Rajeev Thakkar, Chief Investment Officer and Director of PPFAS Mutual Fund.
PPFAS Mutual Fund has received regulatory approval to launch two new passive GIFT City outbound funds – Parag Parikh IFSC S&P 500 FoF and Parag Parikh IFSC Nasdaq 100 FoF, offering Indian investors direct exposure to US equities.
Both funds will follow a passive investment strategy, investing in UCITS-compliant S&P 500 and Nasdaq index funds. According to the fund house, both schemes are designed for investment by Indian resident individuals, corporates, trusts, partnership firms, and other eligible persons. They are benchmarked against the S&P 500 Net Total Return Index (TRI) and Nasdaq 100 Notional Net TRI, respectively. The face value of each unit is US$ 100, with the Net Asset Value (NAV) computed on a daily basis. The scheme has no lock-in period and does not levy any exit load. The fund offers two classes of units: Class A (Direct) with a minimum initial investment of US$ 5,000 and minimum top-ups of US$ 500, carrying a total expense ratio (TER) of 0.30%, and Class B (Regular) with similar investment requirements but a higher TER of 0.60%.
PPFAS added that the fund structure offers several advantages for investors. There are no inheritance tax implications, and tax compliance is simplified since taxes are paid at the fund level. Additionally, the OPI route is permitted only through a GIFT City–based pooled vehicle, ensuring regulatory alignment. Investors also benefit from optimized costs, particularly in terms of foreign exchange conversion and transaction expenses. Overall, the framework provides strong compliance and robust governance standards.
Last month at the Moneycontrol Mutual Fund Summit in Bangalore, PPFAS’ Neil Parikh had said that they were set to launch three new international equity FoFs, aimed at helping investors diversify their portfolios towards global offerings. The third offering is an active fund.
Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.