The grief and shock after the passing away of Parag Parikh, Founder of PPFAS, which is the sponsor company for PPFAS Mutual Fund, is yet to diminish. However, many of you may have doubts about what to do with your investments in the ‘single fund’ run by the AMC – PPFAS Long Term Equity fund.
There are few things that you may need to take note of before your decision. First, the passing away of a key person in a fund house does not mean the AMC will not operate. The AMC is a separate body governed by a trust and not by individuals.
Second, while Parag Parikh was not managing the fund, Rajeev Thakkar, the fund manager who manages the fund (and who was driving the vehicle at the time of accident) has been charged by the Nebraska police of misdemeanour motor vehicle homicide. Rajeev is an Indian citizen and at this point in time, we do not know the implication of the US law. We have, since the posting of this article, received an update that the fund manager of PPFAS Long Term Equity, Rajeev Thakkar has no charges held against him and is returning back to India. Of course, PPFAS may choose to have another fund manager – temporarily or otherwise – run the fund as will be required by SEBI.
As to what you should do now, we think a wait and watch would be an appropriate approach at this stage. We suggest that you wait for the next course of action by PPFAS Mutual. This way you will neither unnecessarily disturb your portfolio nor contribute to a scenario of redemption pressure for the fund.
We shall, at the appropriate time, let you know if any action is required on this fund holding.