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PPFAS Mutual Fund Cuts Cash Below 10 Percent to Deploy Capital Amid Valuations Correction
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CNBC TV18•13-10-2026, 16:20
PPFAS Mutual Fund Cuts Cash Below 10 Percent to Deploy Capital Amid Valuations Correction
- •PPFAS Mutual Fund has reduced its cash holdings significantly from around 24 percent a year ago to 9.7 percent, seizing opportunities presented by market valuation corrections.
- •The fund is targeting overlooked cash-generating businesses trading at attractive multiples, bypassing the market frenzy around artificial intelligence and semiconductors.
- •Real estate giant DLF was added to the portfolio due to its strong land bank, proven execution capabilities, and robust balance sheet.
- •CMS Info Systems was chosen for its strong cash flows and vital role in managing cash transaction infrastructure, despite modest organic growth.
- •The fund maintains a comfortable 20 percent exposure across major private sector banks including HDFC Bank, ICICI Bank, Axis Bank, and Kotak Mahindra Bank.
Key Questions Answered
PPFAS Mutual Fund reduced its cash holdings to 9.7% because corrections in stock valuations created favorable opportunities to deploy capital into cash-generating businesses.
PPFAS added DLF to its portfolio due to the real estate company's substantial land bank, execution capabilities, and deleveraged balance sheet that can support future expansion and cash generation from commercial rental assets.
PPFAS maintains around 20% of its portfolio allocated to private sector banks, specifically HDFC Bank, ICICI Bank, Axis Bank, and Kotak Mahindra Bank.
