'Playing Test Cricket, Not T20' - Rajeev Thakkar Of Parag Parikh To Unit-Holders Amid Market Jitters

Amid increased volatility and jitters on D-Street, Rajeev Thakkar, Chief Investment Officer of Parag Parikh Financial Advisory Services Limited (PPFAS) Mutual Fund, on Tuesday  wrote a letter to unitholders and said that the fund house believes in playing a 'test match' and not a 'T20'. In a letter to unit holders, Thakkar underlined the reason behind holding cash and added that having funds gives the company the opportunity to deploy money in stocks with attractive valuations.

"A question is frequently asked of us as to why we sometimes hold cash. To give a cricket analogy, we are playing test cricket and not a T20 game. Not losing our wickets is more important than hitting a six. We will wait for a loose ball to try and hit a boundary rather than swing our bat at every ball that is bowled," Thakkar said in the letter.

"Investment opportunities do not come everyday across all companies and one has to wait to deploy money well," he further added.

On Investment

In a word of caution for investors, especially at a time when Nifty and Sensex have hit choppy weather, Thakkar said that 'investors would do well to stick to their defined asset allocation and financial plan and not get drawn to the attraction of overnight riches'. .

Thakkar also wrote against focusing too much on small and mid-cap fund. "Given that bulk of the profits of corporate India (approx 75% on an average) comes from the top 100 companies (large cap), investors would do well not to overdose on small and midcap and sectoral / thematic funds." he wrote.