PPFAS Financial Opportunities Forum

21

KIE analysis sounds fair.
In times like these, Its good to be defensive and be extremely picky about the small cap stocks you keep in your portfolio. Regardless of the quality of the stock, its valuation (low/high PE), there will be draw downs, but as long as there’s conviction in business model, one can use it as an opportunity and keep adding. There’s a time to take risks and a time to be defensive, one can’t always allocate 75% PF to small caps, its okay to rebalance.

P/E ratios are not particularly useful for cyclical companies, look at the business momentum and try to think 2-3 quarters ahead. During a crash, markets won’t spare low P/E companies either.

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22

Out of curiosity I compared few small cap funds against their index. Rolling returns over 7 years - https://bit.ly/3ScWHr4

Here I have compared few flexi cap funds. Excluded Axis and ICICI since they are only few years old. And included PPFAS Flexi cap fund. - https://bit.ly/3Spq8GB

From historic data, small caps are doing much better than the flexi cap funds.

Since small cap funds tend to go down during a market crash as compared to Mid and Large caps, wondering if it would be a good idea to get into some of these funds during the next major crash.

Update 2 hours after posting: Came across this, published just two days ago! - Is there any proof small cap mutual funds would outperform in the long term?

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23

Any update on unit holder meeting of ppfas . I think it used to happen in month of October

24

Happening on Dec 2. https://amc.ppfas.com/knowledge-center/notes-by-rajeev-thakkar/2023/letter-from-cio-rajeev-thakkar-unitholders-meet-2023.pdf?09112023_2

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25

The good guys at PPFAS are focusing on AI in the FOF.

In October 2023, Rajeev Thakkar, made the first presentation, of a two part series.

It’s a deep primer on AI…and over time, this base should prove useful in helping you navigate the AI investment landscape…

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26

Unitholders’ Meet 2023

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27

I don’t agree mala fide interest of PPFAS. You can have such cautious guidance from other well know small cap fund managers (The reasons why Pankaj Tibrewal of Kotak Mahindra AMC is cautious on small and micro cap stocks)
Veteran Fund Manager S Naren asks investors to exercise caution as market hits all-time high

I have seen most of new investors are blindly investing in small caps without proper diversification. For these investors when tide turns they might lose money seriously as they might not have patience to remain invested during the serious correction cycle. I think this is the message are being given by all reputed fund houses/fund managers focusing on new /non-experienced investors.

Disc - I have investment in PPFAS Flexicap, Axis Small Cap and SBI Small Cap MF

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28

my biggest concern of PPFAS fund is the 48000 crore AUM.

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29

I think, Thakkar has addressed this concern by saying that, many fund houses have different funds but they have same research team which buys different stocks to be included in different scheme. So if they break it up their scheme into 10 different funds like midcap , smallcap or value or any theme then per scheme aum will be just 4000 cr and then you might feel comfortable with that scheme. But nothing has changed really .just the packaging.

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