India’s mutual fund industry has achieved a historic milestone — Parag Parikh Flexi Cap Fund (PPFAS) has become the first actively managed equity mutual fund to cross ₹1,00,000 crore in Assets Under Management (AUM). This achievement is more than just a number — it reflects a decade of investor trust, disciplined investing, and value-oriented philosophy that has consistently delivered market-beating returns.
Announced by Neil Parikh, Chairman & CEO of PPFAS Mutual Fund, this milestone signifies the fund house’s growing credibility, especially in a landscape dominated by passive investing trends and index funds.
Key Fund Highlights (As of March 31, 2025):
| Metric | Value |
|---|---|
| AUM | ₹93,440.89 Cr (now ₹1 lakh+ Cr) |
| Fund Type | Flexi Cap (Invests across large, mid, and small caps) |
| Returns Since Inception | Direct Plan: 19.89% CAGR Regular Plan: 19.04% CAGR |
| SIP Returns | ₹10,000 monthly SIP since inception: • Direct: ₹51.03 lakh • Regular: ₹48.04 lakh |
| FY25 Estimated PAT | ₹200 Cr |
| Shares Outstanding | 76 lakh shares |
| EPS | ₹265 |
| Implied P/E | ~30x |
Valuation Metrics: PPFAS vs. Listed AMC Peers
| AMC | P/E | P/B | P/S |
|---|---|---|---|
| PPFAS (Unlisted) | 30x | 22.74 | 32.79 |
| SBI Mutual Fund | 63.08x | 19.35 | 40.4 |
| Nippon Life India AMC | 30.8x | 9.4 | 18 |
| Aditya Birla Sun Life AMC | 20x | 5 | 11 |
| HDFC AMC | 37.1x | 11.2 | 26.1 |
Valuation Analysis
Price-to-Earnings (P/E) Ratio
At a P/E of ~30x, PPFAS trades at par with Nippon Life AMC and below HDFC AMC (37.1x) and SBI MF (63.08x). Given its consistent performance and trusted brand equity, PPFAS appears undervalued relative to premium players like SBI MF, especially considering it has delivered close to 20% CAGR since inception.
Price-to-Book (P/B) Ratio
Interestingly, PPFAS has the highest P/B ratio at 22.74, indicating investors’ strong confidence in its intrinsic value and brand. A higher P/B can reflect the company’s asset-light model, high return on equity, and market dominance. Only SBI MF (19.35) comes close, reinforcing the premium positioning of both these AMCs.
Price-to-Sales (P/S) Ratio
At 32.79x, PPFAS’s P/S multiple is second only to SBI MF (40.4x). This premium valuation is reflective of the fund’s lean cost structure, strong margins, and high scalability. Notably, Aditya Birla and Nippon trade at much lower P/S multiples, suggesting either a lower growth outlook or higher operational costs.
Expansion Beyond Mutual Funds
PPFAS is also extending its footprint via PPFAS Alternate Asset Managers IFSC at GIFT City, signalling a strategic move into the AIF and global asset management space — further broadening its value proposition for high-net-worth and global investors.
Final Takeaway
With over ₹1 lakh crore AUM, strong long-term returns, and robust valuations that reflect market confidence, PPFAS is a rare blend of value investing and modern scalability. Its competitive P/E, industry-leading P/B, and strong investor alignment make it not just a milestone achiever, but a benchmark setter in India’s mutual fund industry.
As the Indian asset management landscape matures, PPFAS stands tall — a testament to what patient, value-driven investing can achieve.
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