5 key takeaways from the PPFAS annual unitholders’ meeting

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Subscribe to enjoy similar stories. PPFAS Asset Management Company, which runs India’s largest actively run mutual fund scheme, held its recent annual unitholders’ meeting. Its flagship Flexicap fund has registered a stellar five-year compound annual growth rate (CAGR) of 26%.

But despite its success, the fund house is not without its share of scrutiny. During the annual meet, Rajiv Thakkar, chief investment officer of PPFAS, along with the fund management team, addressed investor questions—whether at the stock level, sector level, or about the overall strategy and operations of the fund house. Here are five key takeaways for investors from the annual meeting.

Often, investors are swayed by recent performance, especially during bull markets. To address this common pitfall, Thakkar began the annual general meeting with a road trip analogy. Imagine a road trip from Mumbai to Pune, Delhi to Shimla, or Bengaluru to Mysuru.

For such a journey, you would prioritize safety—choosing a vehicle equipped with airbags and other safety features, driven by an experienced driver who follows traffic rules. On winding hilly roads or narrow lanes, you would expect the driver to slow down rather than speed recklessly. If the passengers need a coffee or bio break, you’d want the driver to stop.

Similarly, in investing, when valuations are stretched or opportunities are scarce, investors would want a fund manager who knows when to slow down and adopt a defensive approach. Investing, like a road trip, isn’t about racing to the destination—it’s about navigating the journey safely and prudently. “If you are passing through the Khandala and Lonavala ghats, you would expect the vehicle to go slowly.