Parag Parikh Financial Advisory Services Launches Parag Parikh Large Cap Fund with Active Twist on Index Investing

Parag Parikh Financial Advisory Services (PPFAS) is introducing the Parag Parikh Large Cap Fund in January 2026. Designed to track the Nifty 100 index actively, this fund aims to provide broad market exposure with smart execution strategies and a lower expense ratio similar to that of passive funds. 

What Sets Parag Parikh Large Cap Fund Apart? 

Unlike traditional index funds that follow a passive strategy, the Parag Parikh Large Cap Fund is actively managed. Although the fund mirrors the Nifty 100 in composition and relative weights, fund managers will have the flexibility to strategically time trades, avoiding index-based rebalancing pressures. This allows them to potentially buy stocks at more favourable prices and sidestep peak demand during index entries or exits. 

The scheme limits exposure to any single stock at 10% of the portfolio. With exposure to the top 100 listed Indian companies, the fund offers access to nearly 70% of the market's capitalisation and profit pool, distinguishing it from narrower indices like Sensex. 

Why Has PPFAS Launched a Large Cap Fund? 

PPFAS, known for a limited suite of actively managed schemes, is launching this fund based on investor demand and a clear differentiation in strategy. Its current flagship flexi-cap and ELSS funds already focus largely on large-cap equities. However, this new scheme aims to offer a low-cost, simplified large-cap exposure while seeking marginal gains through active execution. 

The fund seeks to offer an index-like experience with additional value by avoiding crowd-driven curbs that passive products face. 

Read More: Parag Parikh Mutual Fund Announces Nifty 100-Based Large Cap Fund Launch by January 2026! 

Target Investors and Cost Efficiency 

The fund aims to appeal to those looking for broad-based exposure to established Indian companies, who prefer long-term equity plans with efficient cost structures. The expense ratio is targeted between 10-30 basis points, competitive with existing index products. PPFAS intends to reduce this further as assets under management rise. 

However, this is not a suitable option for those looking to beat the index significantly, take concentrated bets, or seek fundamental-driven stock picks. 

Conclusion 

The Parag Parikh Large Cap Fund offers a distinct hybrid between passive and active management. With thoughtful trade execution and a focus on cost-effectiveness, it seeks to provide index-like returns without the rigid limits faced by passive investors. 

Disclaimer: This blog has been written exclusively for educational purposes. The securities or companies mentioned are only examples and not recommendations. This does not constitute a personal recommendation or investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Mutual Fund investments are subject to market risks, read all scheme-related documents carefully.