PPFAS Asset Management’s Chief Investment Officer and Director, Rajeev Thakkar, has cautioned investors against expecting the high returns the Parag Parikh Flexi Cap Fund (PPFAS) has historically delivered. Despite the fund’s robust 19% annualised returns since inception, Thakkar says investors should prepare for “low double-digit returns — around 10–12%” going forward, citing structural macroeconomic shifts and the sheer scale of the fund’s assets. Advertisement

Speaking about India’s moderating inflation and interest rate environment, Thakkar noted that nominal GDP growth — a key long-term driver of equity returns — is unlikely to mimic the high-inflation decades of the past. “If India grows at around 6–6.5% real and 3–4% inflation, equity returns should logically settle near 10–12%. I

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