We thank you

for valuing
Value Investing…
INDEX

Letter from Neil Parag Parikh 3

The Fund’s Beliefs and Values 6
Our Heritage 7

Our Mission 7

Our beliefs 7

Scheme Basket 8

Parag Parikh Long Term Equity Fund 8

Parag Parikh Liquid Fund 8

Parag Parikh Tax Saver Fund 9

Thinking Aloud 10
Money Management - Business or a Profession 11

Mental Accounting: Dividend from Mutual Funds 14

Why most investors shun Value Investing? 16

Why downside matters and some basic arithmetic 17

Measure Twice, Cut Once 21

Knowledge Centre 23
Is your Systematic Investment Plan (SIP) really helping you? 24

Demystifying Systematic Transfer Plan (STP) 26

PPFAS SelfInvest 29
Letter from Neil Parag Parikh

Dear Value Investor,

Greetings! 

First of all, thank you for choosing to invest in PPFAS Mutual Fund. In doing so, you have
demonstrated your confidence in our ability to help you achieve your financial dreams.

At this point, I reiterate the promises made to you when we launched our first scheme, in May
2013:

• We will not veer away from the principles of 'Law Of The Farm' and our avowed belief in
long-term investing. 

• We will continue to view money management as a profession and not a business. 

• We are the custodians of your money and will continue to manage it prudently. 
Also, most of us at PPFAS Mutual Fund have invested in the scheme along with you.
Hence, we are both on the same side. In other words, we win only if you win. 

The investment team, led by Rajeev Thakkar, enjoys complete freedom while constructing
the portfolio of all our Schemes. Of course, this is within the confines of our internal
guidelines pertaining to sector exposure, portfolio sizing, etc. 

All of us at PPFAS Mutual Fund are very excited about the road ahead. We know we have
Schemes which will appeal to a cross-section of investors. We will continue to communicate
its features and advantages to the world at large. We hope you will spread the word too! 

Our logo, the tortoise, symbolises our affinity for slow and steady growth. For us, rapid,
uncontrolled growth is akin to a body afflicted with cancer. This kind of growth
is not sustainable. We value long-term sustainability, both, in our investments and in the
way we run our company. The philosophy and values espoused by our Founder, Mr. Parag
Parikh, will continue to be the beacons guiding all of us. 

I sign off with the hope that you will continue to support us. 

Warm Regards,

Neil Parag Parikh 

You cannot sow something
today and reap tomorrow!
A seed has to go through
the various seasons before
it turns into a fully grown
tree. So is the case with
Investing.”
PARAG PARIKH,
FOUNDER
The Fund’s Beliefs and Values

The “Law of the Farm” which states that one cannot sow today and reap tomorrow.
Investments too must be undertaken with this underlying principle in mind.

The strong conviction that “Money Management is a profession rather than a business”.
Hence we strive to be custodians of our clients’ funds by avoiding reckless investments which
could potentially destroy their capital.

We ignore short-term fluctuations in prices and focus on long term success.

We define “investing” as purchase of businesses rather than merely purchasing stocks.

Companies forming part of our portfolio must comply with stringent criteria such as being
managed by honest and competent managements, high pricing power, high return on equity,
high free cash flow and high entry barriers, to name a few.

Most important, we maintain our patience and discipline and do not get swayed during
excessively frothy times.

At PPFAS Mutual Fund we follow a process which involves fundamental research coupled
with the application of the concepts of behavioral finance.

We would like to be seen as the first choice of patient investors, who believe in increasing
wealth via the power of compounding, rather than market-timing.

Our Heritage

PPFAS Asset Management Private Limited (PPFAS AMC) has been promoted by Parag
Parikh Financial Advisory Services Private Limited (PPFAS Pvt. Ltd.), a boutique investment
advisory firm incorporated in 1992. PPFAS Private Limited is also amongst India's earliest
SEBI Registered Portfolio Management Service (PMS) providers.

Our Mission
To help clients achieve their long-term financial goals through prudent fund management.

Our beliefs
While many say that they focus on the long-term we go beyond mere words. We are guided
by the 'Law Of The Farm' which states that everything takes its own time and hastening the
process will be counterproductive. This is reflected in our relatively long holding periods.

We believe that investing should not be a complicated process. Hence we strive for simplicity
in our scheme design, investing process and our operations. While investing involves
individuals, we accord more importance to the investing process than to personalities.

We constantly remind ourselves that fund management is a profession rather than merely a
business. Hence we never lose sight of our fiduciary duty to our clients.

We are also convinced that an educated investor is an empowered investor and we strive to
bring about this empowerment through simple, yet effective communication.

Scheme Basket

Parag Parikh Long Term Equity Fund

Parag Parikh Long Term Equity Fund (PPLTEF) is one of a handful of Indian mutual fund
schemes to invest in a basket of Indian and foreign stocks.

Local Fund with Global Focus Scheme Factsheet Learn More here…

Parag Parikh Liquid Fund

Parag Parikh Liquid Fund (PPLF) is an open-ended
scheme whose primary investment objective is to
deliver reasonable (non-guaranteed) market related
returns with lower risk and high liquidity through
judicious investments in money market and debt
instruments.

PPLF is a suitable option for investors who are

seeking a low risk savings solution for short periods
(usually, less than a year).

Scheme Factsheet Learn More here…

Parag Parikh Tax Saver Fund

The Scheme is the third Offering from PPFAS Mutual Fund. It is an an open-ended Equity
Linked Savings Scheme (ELSS) with a 3 year lock-in period from the date of investment for
every investment instalment. It is a diversified Equity Fund investing a minimum of 80% of its
corpus in Indian equities. It enjoys the same Capital Gains Tax benefits as available to other
India-focused Equity Schemes (viz. Gains will be taxed at a flat rate of 10%*)

Scheme Factsheet Learn More here…

Thinking Aloud
A Few Thoughts on Investing!
Money Management - Business or a Profession
ARTICLE BY PARAG PARIKH [4 MIN READ] 28 OCT 2013

The current debate in the Indian mutual fund industry is around the net worth issue with one
view wanting this raised from the current 10 crore and the other wanting it to stay where it is.
I think we need to look at this debate through the lens of whether we consider money
management as a profession or a business. If it is a profession, then a professional does
what is good for the client as the well-being of the former depends upon the well-being of the
latter. However, if it is a business then one is concerned about making business sense of the
venture undertaken. More than the client’s interest, it is the business interest that dominates.
I believe that money management is a profession but in India with high entry barriers and
restrictive regulations, it has turned into a business. Result: marketing teams, distributors,
multiple schemes and the race for assets under management.

World-over, money management is considered a profession. Hence the entry barriers are low
so that right investment professionals can enter the field. In the US, one requires just
$100,000 to set up an asset management company (AMC), in the UK and the European
Union it is €125,000 and in Singapore it is Singapore $250,000. Surprisingly Japan has no
such minimum criteria. So with just 3 crore, one can be a global asset manager. While in
India, where we already have a high entry barrier of 10 crore, we are trying to make it even
higher.
Those advocating higher net worth have two arguments. First, high net worth will ensure only
serious and committed entities and second, penetration will be achieved as those with high
net worth will be able to open branches.

An AMC is a pass-through vehicle which does not use balance sheet; prima facie there is no
need for capital requirement. What is required is intellectual capital: passion for investing,
knowledge of stock markets, experience in the capital markets, investment style and
philosophy and core investment beliefs.

Large capital does not bring seriousness which is evident from some cases in the past.
Moreover, the required capital may bring wastage and cost escalation in terms of salaries,
commissions and make the entire industry a high cost one which may not bode well for end
investors. As of today, there is no embargo on maximum capital and hence entities that want
to pursue business strategy with large capital are allowed. It will become very hard for any
new entity to set up an AMC with such requirements as it will take a long time to get the
desired return on equity and business will be unviable. So a very few will remain who have
clearly demonstrated their ability to create cartels.

While 100 crore may be peanuts for large conglomerates, 10 crore may be significant for
professionals; so skin in the game is a function of relative situation and not an absolute
number. The real skin in the game is when sponsors, fund managers and directors invest in
the scheme aligning their interests with that of investors. Some of the well capitalized fund
houses and their associates have well publicized integrity issues and punitive actions that
have been taken by the Securities and Exchange Board of India. Thus higher capital is no
guarantee of integrity. There are enough empirical evidence that larger a balance sheet
neither is a guarantee for seriousness nor for integrity. With high net worth, we are giving
wrong signals to investors about an illusion of a safety net. If any thing goes wrong with
investments, the high net worth will take care of the losses.

Penetration by opening new branches is an idea whose time has gone. In an era of Internet,
physical presence is less significant. There are third-party execution platforms such as
registrars and stock exchanges which ensure that even though the fund house does not have
presence, investors have smooth execution capabilities across the entire country. Excessive
emphasis and economic incentive for selling in remote areas actually makes investors from
these areas exposed to predatory mis-selling and ultimately they loose faith in such
instruments. E-commerce in India is highly successful and should be embraced with an open
mind rather than insisting on physical infrastructure.
A financial product is very different from a banking product. Such products require financial
professionals with passion and expertise to educate and convince clients of the benefits of
the investment process. Investor education is a process and would be achieved by proactive
investment professionals. The US has more than 600 AMCs whereas India has just 50.

We have enough checks and balances in place to ensure that investors are protected from
professional misdemeanours. Besides, safeguarding one’s reputation is of paramount
importance for professionals as, often, this intangible asset is the only one they possess.
Hence I intuitively feel that they are likely to exercise much greater care compared with a
conglomerate for whom this is only one of many activities. Why not reduce the capital
requirement or do away with it all together? After all, if entry barriers have to be imposed, let
them be intellectual rather than monetary.

——————————————————
Mental Accounting: Dividend from Mutual Funds
ARTICLE BY PARAG PARIKH [4 MIN READ] APRIL 29, 2014

Mental Accounting: Money is fungible. That is Rs. 100 is equal to Rs. 100 only, not more nor
less. However we human beings accord different values to the same amount of money
depending on how the money is earned, the effort taken to earn, the quantum of money in
consideration and the source of the money. To give you an example; Rs.5000 earned as
salary has more value than Rs. 5000 earned in winning a lottery ticket. We are more likely to
splurge on the earnings from lottery than on earnings from salary. We tend to separate Rs.
5000 in to two different mental accounts. Serious and hard work mental account for salary
and free money mental account for the lottery. This mental accounting is responsible for a
host of mistakes we make in our spending and investment decisions. Being aware of this will
make us better and wiser decision makers.

In the investment world lets understand the mental accounting biases with refer-ence to
interest and dividends. We make investments to earn a return and that could be by way of
interest or dividends. If we make fixed income investments we get an interest which we know
in advance. We treat this in a mental account of planned earnings and treat it with respect.
However when we make investments in equities our returns are from dividends. Dividends
are never fixed from before and are subject to the company’s performance. Hence when we
are rewarded with divi-dend there is a different type of joy. This virtue of the unknown makes
us treat this earning as free money and we put it in a mental account of free money and we
are likely to splurge on the same. Although our interest and dividends are of the same
quantum we would put them in different mental accounts. Interest would be earned and
dividend would be gained.

If you do not understand your own biases then in a competitive market there are others who
would exploit it to their advantage. Mutual Fund Industry does it best to exploit investors
mental accounting bias by giving the dividend option. Lets under-stand the structure of a
mutual fund. Investors pool in their resources and the same are managed by the asset
management company. The monies entrusted are in-vested in the market and according to
the prices of these investments, everyday the fund publishes its NAV.

Lets take a hypothetical example: A fund collects Rs. 10 crores and issues one crore units at
Rs. 10 each. There are 1 lac investors holding 100 units of Rs. 10 each. Now this Rs.10
crores is invested in the market and with the prices of investments rising the NAV goes to
Rs.15. Now this money belongs to the investors. The investor held 100 units of Rs. 10 each
and had paid Rs. 1000. Now his investment fetches Rs. 1500. Now the mutual fund gives a
dividend of Rs. 2 per share. This money will come directly from the corpus of the fund which
at present is Rs. 15 crores. To pay a dividend of Rs.2 per share to one lac investors holding
100 units each will come to Rs.2 crores. So after paying the dividend the NAV will go down to
Rs. 13 crores and the unit price will quote at Rs.13. The unit holders have been paid back
their own money and they are happy. Mental Accounting is at work. Dividends are considered
free money and hence the joy. Dividend from a mutual fund is very different than a dividend
from a company. They are not representative although they seem to be. The company has a
business, it earns profit and from the said profit, a part is distributed to shareholders as
dividend and the rest is ploughed back. A mutual fund manages the money and returns a part
of it as dividend and the corpus goes down. Although both seem the same they both are very
different.

However if one is an investor in a debt mutual fund and is getting dividend then it is a double
whammy. When his own money is given to him as dividend the fund is re-quired to pay a
dividend distribution tax of 28%. It is surprising that fund houses follow such tax inefficient
practices that are against investor interest. However Eq-uity funds are not liable to pay the
dividend distribution tax.

Investors decide the dividend they need: Parag Parikh Long Term Equity Fund has no
dividend option in their scheme. The goal is to encourage investors think and act long term.
The investor can decide the quantum of the dividend he wants and can redeem an equivalent
amount of units. This way investors will be thrifty in dealing with their finances making them
self disciplined. Investors will not fall in to the mental accounting trap and will redeem only
that what their need is. Investors need to inculcate such discipline with their investments. In
the long run they will benefit.

——————————————————

Why most investors shun Value Investing?

ARTICLE BY PARAG PARIKH [2 MIN READ] AUGUST 17, 2014

Why is Value Investing boring? Why do investors shun value stocks. Why do fund managers
swear by value investing but are not able to walk the talk? It really requires a lot of courage
and discipline to follow value investing.

One of the main reasons investors shy away from value investing is that the stocks they
consider have poor stories. The companies that show up on the screen can be scary and not
doing well, so people find them difficult to buy. The depressed prices instead of attracting
investors make them repel..

What attracts investors about companies? Companies that have done well in the past in both
stock market and financial performance and those that have exciting stories. Remember the
tech boom, the story: advent of a new economy or the infrastructure boom: building India, or
the power sector boom: Powering India. 2006/2007 were known for their highly valued most
admired real estate, infrastructure and power stocks. Thus the most admired stocks have
great stories and high prices attached to them, whereas the despised stocks have terrible
stories and sport low valuations. These compelling stories make them market fancies and
they start commanding fancy prices. Over time when the fancy ends investors are left with
fancy losses.

Psychologically investors tend to be attracted to the admired stocks. Yet the despised stocks
are far better investment. They significantly out perform the market as well as the admired
stocks. Investors find a stock less risky when everyone is buying and the prices are going up.
They find it more risky when no one is buying and the prices are going down. This is how
investor psychology works. It requires a lot of courage and discipline for one to go against the
popular trend.

At the other end of the spectrum from value stocks we have another group of stocks that
have different stories attached to them. I am talking about Initial Public Offerings (IPO's),
companies that have come to the market for the first time to offer their stocks to the public.
Such stocks have great stories attached to them and are able to sell such stocks at high
premiums. One recent example that captured investor's imagination was the IPO of Reliance
Power in the fancy power sector. The stock had a great story: Powering India. Everyone was
exceedingly excited about the growth prospects of this company that they paid a hefty
premium and the issue was heavily oversubscribed to be called the mother of all IPO's.
Investors overpaid for the stock and there was no margin of safety. On listing the prices
crashed. The euphoria of the story was over as the earnings dropped over time.

Want to know which are the hot stories in the market? Read the newspapers and see the
advertisements of companies coming out with IPO's, and new mutual fund scheme launches.
That is what is hot in the markets.

Investing is for making your money grow. It is not for excitement. Value investing may sound
boring but that is the only way you grow your wealth in stock markets. Parag Parikh Long
Term Equity Fund follows the Value Investing principles.

——————————————————

Why downside matters and some basic arithmetic

ARTICLE BY RAJEEV THAKKAR [3 MIN READ] APRIL 14, 2015
The most important thing about investment returns is that they are multiplicative and not
additive.

Here is a quick arithmetic test. What is the average of the following two series of numbers:

A) 40%, 50%, -60% and 65% (Answer: 23.75%)

B) 20%, 15%, 17% and 20% (Answer: 18%)

This would be the normal average that one would calculate. It’s also called the arithmetic
mean.

Let us say you are told that the numbers represented the annual returns from two different
investments, A and B, over the past four years. You may be tempted to think that despite the
somewhat volatile nature of returns from A, that’s the one which gave higher investment
returns over the past four years.

However, the most important thing about investment returns is that they are multiplicative and
not additive. Hence, arithmetic mean will give an absolutely wrong answer in returns
calculations.

In the case of investment A, 100 invested at the beginning of four years would have values of
140, 210, 84 and 138.60 at the end of years 1, 2, 3 and 4, respectively. In other words, for
investment A, 100 has grown to 138.60 at the end of four years.
On the other hand, investment B will have values of 120, 138, 161.46 and 193.75 at the end
of years 1, 2, 3 and 4, respectively. So, for investment B, 100 has increased to 193.75 at the
end of those four years.

This high school mathematics has important lessons for investors.

A positive return of 90% and a negative return of 90% are not the same numbers with a
positive and negative sign before. If you have made a 15% return instead of 90%, you would
take 4.6 years to grow your money by 90% instead of one year. This may not be such a bad
thing. However, if you lost 90% of the money in the first year, you would take many years just
to break even. If you started out with 100, you would be left with 10 after a 90% loss and
getting back to 100 would require you to grow your money ten fold.

This lesson should be kept in mind while chasing the latest fads such as buying ‘hot’ stocks
or sectoral funds or buying funds focused on particular market capitalization criteria. Very
high annual returns may be followed by a year or two of high negative returns, and this would
be severely damaging to the long-term compounding of investor wealth.

Every bull market brings forth ‘gurus’ who espouse one or more of the following. The names
of these ‘gurus’ may be different, the strategies recommended may seem to be different but
at the heart of the matter they essentially say:

1) Employ leverage to get rich quickly (this may be direct leverage or use of derivatives or in
the form of structured products or mutual fund schemes using call options to leverage).

2) Have a very concentrated portfolio of winners.

3) Traditional valuation metrics do not count and this time it is different. This may take various
forms, such as the replacement cost theory in 1992 or eyeballs valuations at the time of
dotcoms in 1999 or the land bank valuation in 2007. The current fad seems to be the India
consumption story. It is being assumed that local companies have a long runway and sales
by companies selling to the Indian consumers will grow exponentially, and that the current
valuations, such as price-to-sales or price-to-earnings, do not matter.

In fact, valuations of many companies that have had difficulty growing sales and profits have
also sustained at high levels. It seems that the only requirement to have high valuations is a
‘story’ that can be told about the huge growth down the road.
The peril of buying these stories at current valuations would be that in case these end up
being false, one could see large declines in portfolio valuations. Moreover, since the starting
valuations would already be quite high, even if the ‘story’ unfolds as planned, not much
upside will be left thereon.

Slow and steady wins the race holds true in compounding investment. And clearly Warren
Buffett was on to something when he said, “Rule No.1 is never lose money. Rule No.2 is
never forget Rule No.1."

Another of his favourites is: “Be fearful when others are greedy, and be greedy when others
are fearful."

At present, I would be circumspect about piling on to small- and mid-cap scrips which are in a
grip of momentum, and sectors such as fast-moving consumer goods ( the Indian
consumption story) or defence-related stocks (on the back of Make in India/defence offsets).
And if the future turns out anything less than perfect, investors could see big declines in
portfolio values in overhyped stocks and sectors.

——————————————————
Measure Twice, Cut Once
ARTICLE BY RAUNAK ONKAR [2 MIN READ] JUNE 10, 2014

“A lot of shavings don’t make a good carpenter.”

My carpenter said to me as I watched him work, perched on a stool. He was shaving a

wooden panel from my work table. I had been complaining to him for over a week about one
of the drawers that creaked as I pull it out. This is really odd for a brand new, custom made
table. Usually these issues creep up over years when changing weather and moisture take
their turns to age the wood. Now that he was here and identified the problem, he got right to
work.

He made me empty the drawer and observed what had gone wrong. To my untrained eye it
was all straight lines, but he spotted something and pulled out a tiny wood shaver and
shaved a small portion. He said that “the apprentice in my shop who made this drawer
shaved some part of the drawer far more than necessary. Maybe he was not confident with
the cut.”

I wanted to tell him I did the same thing with my portfolio when I started investing. I was not
confident about my ideas and therefore allowed the price movement to control my decision
making. I acted more often than necessary and expected better results due to my
“nimbleness”. More activity doesn’t always mean better results. Sometimes doing less &
being decisive is a better choice.

He bent down to check if the wooden strip on which the drawer rests, fits properly or not. He
didn’t even need a torch. He just ran two fingers down the strip and immediately found
another problem. The strip that was supposed to be one single piece of wood was two pieces
joined together. The seam was cleverly concealed but nevertheless it was not a single strip.

The carpenter told me again that he was sorry but there seems to be another problem. The
apprentice also made another basic mistake that he shouldn’t have made in the first place. I
was more curious to know what wisdom he was about to offer. He hit me with it, “Sir, he
broke the first major rule of woodworking – Measure Twice, Cut Once.”

He pulled out a plain strip of wood made careful measurements & marked it for cutting. He
pulled out the previous two strips and nailed the new one in. He put the drawer back in and it
slid back in place like it rolled on butter.

I was blown away. I never thought a skill like wood working would have so many teachings
for an investor. The table is supposed to last for at least 15 years. The responsibility of the
person who makes it to last that long, is enormous. The same for any investor who invests
for the long term. We should always investigate the basic premise and act decisively once we
have made up our mind. Any other factors like price movements in between shouldn’t shake
us from our long path.

“Measure twice, Cut once.”

——————————————————
Knowledge Centre
Is your Systematic Investment Plan (SIP) really helping you?

Many of us are familiar with the benefits of SIPs :

• It is a disciplined way of investing.

• You do not have to worry about the ‘Right time’ to invest.

• It helps to de-link emotions from the investing process.

• Stock market volatility could work to your advantage.

However, merely starting an SIP is not enough...

But if you are an investor who...

• Invests a random amount, without giving it much thought.

• Is fixated with ‘round figures’ (say, ₹ 2,000 per month),

• merely because it is convenient.

• Is unaware of how inflation can destroy wealth.

• Is not clear as to why you have commenced the SIP.

Then it is time to review your SIP!

Here’s a check-list to make your SIP more effective:

Myths about SIPs:

• It is type / category of mutual fund scheme.

• It is a guarantee against losses

• Market-timing improves SIP performance

Mythbusters:

• It is not another category, just a mode of investing

• While it reduces the chance of loss, there is no guarantee
• Choosing the auto-pilot mode has given better results

Calculate the right amount for your SIP here….

Demystifying Systematic Transfer Plan (STP)

Today, many investors are aware of the benefits of investing in mutual funds through the SIP
route. However, 'Systematic Transfer Plans' (STPs) are still a mystery to many. Here's an
attempt to demystify it:

What is STP?

In the case of mutual funds, a STP refers to transfer of money from one scheme to another at
pre-determined intervals.

Usually, STPs are undertaken from liquid schemes into equity schemes.

For instance, ₹ 48,000/- is invested into a liquid scheme and ₹ 4,000/- is transferred into an
equity scheme every month for 12 months.

The scheme to which the money is transferred is known as the Transferee Scheme and the
other is known as the Transferor Scheme. For instance, if money is transferred from a Liquid
Scheme to an Equity scheme, the latter is the transferee scheme.

Who can avail of it?

Any unitholder of that particular scheme can avail of it. Usually, no specific restrictions are
imposed.

When can one undertake it?

This could be daily, weekly, monthly or any other period offered by a Fund.
How can we do this?

Most mutual funds offer both, the online and offline option.

How much can one transfer?

Usually there is no upper limit. However, the

lower limit will depend on the provisions
contained in one / both the schemes.

For instance, if the minimum investment in an

equity scheme is ₹ 1000/-, we would not be
permitted to transfer a sum of ₹ 500/- from the
Liquid scheme into the equity scheme via STP.
Also, the minimum number of transfers may be
specified (Say, Minimum of 6 monthly
instalments).

Can STPs guarantee against losses?

STPs (like SIPs) enable us to divide our investment over long periods and reduce the scope
for losses. Losses could still occur if the stockmarket only moves up for several months /
years and then reverses suddenly and sharply.

Is there a 'right time' for starting a STP?

STPs (like SIPs) help us buy more units when markets are low and less when markets are
high. Hence they enable us to profit from market fluctuations without us having to second-
guess market movements. Consequently, it is not prudent to wait for a 'right time' to begin.

Is there a 'right STP amount'?

No. The amount depends on your income, savings pattern and financial goals. It differs for
each investor.

Is there a 'right STP period'?

No. The period too depends on your financial goals. Generally, the longer you undertake
STPs into equity schemes the better, as equity schemes often deliver good returns, but only
if held for many years.

Benefits of STP:

It reduces temptation:

While signing up for a SIP is good, there may be times when you may be tempted to spend
the earmarked money in your bank account for other purposes.

However, if you sign up for a STP, the chance of this happening reduces a lot, as the money
moves out of your bank account into a scheme first.

It may be quicker to start a STP:

STPs can usually commence within seven days of applying, while SIPs often take 15 days or
more. It is also less cumbersome to commence an STP as the unitholder need not give any
instruction to his/her Bank.

Chance of earning higher returns:

A STP requires you to first invest in a scheme (often, a liquid fund) and investors in liquid
funds usually earn slightly higher returns than those who simply park their money in savings
bank accounts.

Reduces the scope for fear...

Many times, investors refrain from investing money during market corrections, fearing further
falls. The chance of such discontinuance reduces if money is already parked in a liquid fund
and is moved periodically into an equity fund.

...and greed

Soaring stockmarkets may tempt us to Invest large sums of money in one instalment, thereby
increasing the chance of losses if markets correct suddenly. Investing in a liquid fund and
then undertaking STP reduces the chances of suffering from bursts of 'emotional investing'.

PPFAS SelfInvest

Consistent with our preference for 'digital over terrestrial', we have launched our Mobile App
titled 'PPFAS SelfInvest'.

Through this you can currently, view your investments, make additional purchases, redeem
and switch. Start a Systematic Investment Plan and fetch your Account Statement.

We do hope you will download the App and find it useful.

Download it here…
 PPFAS Mutual Fund

81/82, 8th Floor, Sakhar Bhavan, Ramnath Goenka Marg, 230,

Nariman Point, Mumbai - 400 021. INDIA.
Tel: 91 22 6140 6555 Fax: 91 22 6140 6590
Email: mf@ppfas.com Website: www.amc.ppfas.com

Investor Helplines: Distributor Helplines:

1800-266-7790 [Toll-Free] 1800-266-8909 [Toll-Free]
91-90046-16537 [Whatsapp/SMS] Email: partners@ppfas.com
Email: mf@ppfas.com (Weekdays - 09:30 AM to 5:30 PM)
(Weekdays - 09:30 AM to 5:30 PM) Saturday: 9 AM - 1 PM
(Note- 2nd and 4th Saturday would be holiday)

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

© 2019 PPFAS Asset Management Private Limited. All rights reserved.

Sponsor: Parag Parikh Financial Advisory Services Private Limited. [CIN:

U67190MH1992PTC068970], Trustee: PPFAS Trustee Company Private Limited. [CIN:
U65100MH2011PTC221203], Investment Manager (AMC): PPFAS Asset Management
Private Limited. [CIN: U65100MH2011PTC220623]