PPFAS Mutual Fund plans to come out with liquid fund, ELSS

As part of its expansion plan, PPFAS Mutual Fund is planning to launch a liquid fund and an equity-linked saving scheme (ELSS) in the near future.
However, the fledgling fund house, whose current assets under management (AUM) stood at Rs 750 crore, will continue to run its diversified equity scheme Parag Parikh Long Term Value Fund as it flagship plan.
"We are contemplating to come out with a liquid fund and an ELSS in the near future. Currently, we are at the planning stage and shall share their details with you soon," PPFAS MF chief executive Neil Parag Parikh told PTI today.

"However, the liquid plan will be more of a facility for parking fund for our investors," he added.
Talking about the proposed ELSS, he said, "Its going to be some time down the line once we reach a particular size of AUM and a larger customer base."
The company is focusing more on its digital offerings and has already launched 'Self Invest', a mobile application. It will launch its web app soon.

The MF player is likely to open branches in Bengaluru, Chennai and Delhi. Currently, it has got only one office - in Mumbai.
The expense ratio of the company is currently at 1.80 per cent a year for direct plan and at 2.30 per cent a year for regular plan, which are exclusive of service tax.

Parikh said, "We plan to bring down expense ratio for direct plan to 1.5 per cent and 2 per cent for regular plan when the AUM crosses Rs 1,000 crore."
The expense ratio is a measure of what it costs an investment company to operate a mutual fund.
Meanwhile, the fund house, which completed four years of its existence on May 28, achieved a networth of Rs 50 crore in December from Rs 10 crore in 2013.
Three years back, the Sebi had come out with a norm that stipulated all the 44 fund houses to achieve a minimum net worth of Rs 50 crore in three years' time.

"We achieved the Rs 50 crore networth level well in advance," Parikh said.
"We ploughed back around Rs 10 crore of the company's profit into the AMC business during the past three years to increase networth and bring it at the regulatory required level," he said.