Avendus Future Leaders Fund III (FLF), a private strategic fund of Avendus Group, has made an investment of approximately 140 crore rupees in Parag Parikh Financial Advisory Services (PPFAS).
Furthermore, the fund announced that it plans to reach its final close at around 1,800 crore rupees by the end of the current month.
The investment in PPFAS was made through a secondary transaction, in which FLF acquired shares from promoters Anil Parag Parikh and Kushbu Joshi. Founded in 1992, PPFAS is an equity-focused asset management company.
Ratesh Chandra, Managing Director of Avendus Future Leaders Fund, stated that the company views PPFAS as well-positioned to capitalize on structural growth opportunities in India's asset management industry, given the growing preference of Indian households for financial investments and increasing investor participation in capital markets.
According to FLF, this investment in PPFAS aligns with the fund's strategy of partnering with high-quality, market-leading enterprises possessing strong fundamentals and long-term growth potential.
PPFAS's flagship product, the Parag Parikh Flexi Cap Fund (PPFCF), manages approximately 1.43 lakh crore rupees in assets under management (AUM). The company reported that PPFCF has demonstrated a Compound Annual Growth Rate (CAGR) of about 18% over the last decade.
Nilam Parag Parikh, Chairman and CEO of PPFAS, noted that the company's transition to a full-service asset management platform covering mutual funds, wealth management, GIFT City funds, private equity, and National Pension System (NPS) marks a significant milestone in the company's development.
He also emphasized that, in PPFAS's view, Avendus FLF shares their long-term vision and values, and that this partnership will strengthen their platform, enhance capabilities, and allow them to deliver greater value to clients, investors, and other stakeholders.
Regarding the final close of Fund III, Avendus reported that the investment vehicle has already deployed 30% of its capital and expects to make five to six more investments over the next 12 months.
FLF manages a consolidated AUM exceeding 4,000 crore rupees across all its funds and focuses on investing in late-stage market leaders with high growth potential. Its portfolio includes Lenskart Solutions, La Renon Healthcare, Sagility, SBI General Insurance, Licious, Juspay, Zeta, Veritas Finance, Avanse Financial Services, Aragen Life Sciences, and IL JIN Electronics.
As the stock market approaches record levels, ICICI Prudential Mutual Fund has introduced a new product—the ICICI Prudential Balanced Hybrid Fund. The New Fund Offer (NFO) period for this scheme is open from June 30, 2026, to July 14, 2026. This fund will allocate assets between equities and bonds in a proportion ranging from 40% to 60%.
The launch of the fund comes amid persistent global uncertainty. Factors influencing the decision include geopolitical tensions, doubts about global growth, changing interest rate expectations, and high valuations of domestic stocks. The fund house notes that equities have the potential to generate wealth in the long term, but they can also provide support during periods of correction in the bond market.
This open-ended balanced hybrid fund is designed to generate capital appreciation and income through investments in both equities and fixed-income instruments. The scheme does not involve exposure through arbitrage. The equity portfolio will be diversified across various market capitalizations and sectors. Regarding the bond portfolio, it will focus on utilizing duration opportunities, AAA-rated bonds, Government Securities (G-Secs), and credit opportunities.
The allocation between equities and bonds will be regularly reviewed based on metrics such as valuation, earnings forecasts, and bond yields.
Shankarnan Naren, Executive Director and Chief Investment Officer of ICICI Prudential AMC, stated that the ICICI Prudential Balanced Hybrid Fund is created to achieve an optimal balance between equities and bonds. According to him, given the current market situation, 40-60% will be allocated to both asset classes. He emphasized that such a balanced approach can support both income generation and long-term capital creation for investors under present conditions.
In a balanced hybrid fund, the share of equities and bonds fluctuates within the range of 40-60%. In contrast, aggressive hybrid funds typically have a higher percentage of equities—from 65% to 80%—and a lower percentage of bonds—from 20% to 35%. This is why the risk level in a balanced hybrid fund is set as moderate, whereas for the aggressive category, the risk is assessed as moderately high or high.
For the balanced fund, an investment horizon of 3 to 5 years or more is recommended, while for the aggressive fund, a period of 5 years or more is indicated. The fund house refers to old data from a hypothetical 50:50 portfolio, which showed small losses during significant downturns and higher long-term returns than bonds in normal conditions.
The minimum investment amount in this scheme is ₹500, after which investments can be made in increments of ₹1. Both Direct Plan and Regular Plan are available. The benchmark for this scheme is the CRISIL Hybrid 50+50 – Moderate Index. The fund is managed by Roshan Chutkey, Manish Bantia, and Akhil Kakkar. This fund is suitable for investors who aim for long-term capital growth but wish to maintain relatively low portfolio volatility.
The choice depends on individual investment goals and the investor's risk appetite. Investors focused on the long term and willing to withstand large fluctuations may consider the aggressive hybrid fund. However, for those closer to achieving their goals, this balanced option might be more suitable. It should also be considered by investors who prefer a more stable portfolio or are concerned about sharp declines. Investing can begin with an amount of ₹500.
It will be interesting to observe the reaction to the NFO until July 14, 2026. After this, the asset allocation between equities and bonds will be periodically reviewed based on valuation, earnings forecast, and bond yields. In the coming weeks, it will become clear how well this balanced approach is accepted by investors against near-record market levels.
