Parag Parikh Mutual Fund Announces Nifty 100-Based Large Cap Fund Launch by January 2026

Parag Parikh Financial Advisory Services Mutual Fund  (PPFAS) is preparing to launch a new Large Cap Fund by January 2026. This move marks a significant shift, designed to serve investors looking for broad market exposure with a low cost and efficient trade execution strategy. 

PPFAS Targets Nifty 100 for Broad Exposure and Cost-Efficient Strategy 

The upcoming Large Cap scheme will be benchmarked around the Nifty 100 index, ensuring a wide market representation. With nearly 70% of India’s market capitalisation and profit pool captured, this index includes top-performing companies, making it an ideal ground for passive-style investing with modestly active tweaks. The fund will aim to hold all Nifty 100 stocks with index-like weights, subject to a cap of 10% per stock. 

This decision stems from the growing demand among investors who prefer portfolios closely aligned with indices but without the high costs often associated with actively managed funds. 

Balancing Passive Philosophy with Smart Execution 

Despite its similarity to an index fund, PPFAS plans on adopting a smart execution strategy. For example, it may use futures if available at a discount or avert trading during index rebalancing dates to avoid excessive premiums. These opportunities allow active fund managers an edge over traditional passive funds, which must stick to index changes on fixed dates. 

Read More: Top Equity Mutual Funds with Highest 5-Year CAGR for November 2025! 

Low Expense Ratio and Long-Term Positioning 

One of the prime features of the upcoming fund is its cost structure. PPFAS plans to keep the expense ratio within the 10 to 30 basis points range, consistent with existing Nifty 100 index funds. It also intends to reduce costs as the fund size grows, making it a viable option for cost-conscious investors eyeing stable, long-term returns. 

The fund will maintain over 95% of its assets in equities, aligning with SEBI’s mandate for categorised Large Cap funds. Target investors include those seeking index-like returns with slight enhancements due to trading efficiencies. 

Conclusion 

PPFAS plans to launch its Nifty 100-based Large Cap Fund by January 2026, targeting investors who prefer low costs and broad market exposure. The strategy intends to blend passive investing with selective trade efficiencies, creating a distinct offering in the Large Cap mutual fund category. 

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.