PPFAS after Parag Parikh

Published: May 5, 2015 at 2:57 pm

Last Updated on July 24, 2020

We all woke up to the shocking news yesterday that Parah Parikh died in a car crash in the US on Sunday (May 3rd). He was not wearing a seat belt. His wife was wearing one, but still sustained serious head and chest injuries and is critical.

Yesterday afternoon, the PPFAS management sent an email announcing his death with a disturbing postscript:

PS: Mutual fund is functioning normally for all transaction.

Disturbing because even in this hour of shock disbelief and sorrow, they had to comfort investors that all is well.

Yes, investors are worried.

Worried that the founder of the organization is dead.

Worried that the driver of the car was fund manager, Rajeev Thakkar. While he only sustained minor injuries, he could be facing a charge of  misdemeanor motor vehicle homicide

Accoring to Nebraska law, this is typically a class I misdemeanor and could entail imprisonment up to 1 year. However, since Rajeev has no criminal record, the punishment, if delivered, might be one of probation and community service.

However, considering Rajeev is not a US citizen, I do not know how the judge will rule.

In any case, I dont think Rajeev can come back to India until this case is resolved.

In the meantime PPFAS will have to act per SEBI regulations in such matters (fund manager facing trial, on leave of absence etc.).

Since these are not criminal charges, I dont think Rajeevs registration will be cancelled by SEBI. Howver, it is possible that until the matter is settled, Rajeev might have to step down for a brief period.

I dont think that the PPFAS management will abandon Rajeev, at least for professional reasons.

What should you and I do?

We should – do nothing.

I am an NFO investor in PFFAS. I did not invest beacuse of Parag Parikh or Rajeev. I invested because of the strategy. I dont think that is going to change. It could, of course, but I just dont think so.

I will do to PPFAS holdings, what I will do with any of my other holdings. Review periodically and act only when there is visible underperformance.

Let us leave PPFAS alone for a while. Give them space to mourn and sort things out.

Apologies for the sepculative nature of this post.

References:

  1. US new report

http://www.wowt.com/home/headlines/BREAKING-Two-Critical-Two-In-Serious-Condition-After-Morning-Crash-302342921.html

  1. Nebraska law

http://nebraskalegislature.gov/laws/statutes.php?statute=28-306

  1. SEBI fund manger rules

http://www.sebi.gov.in/acts/act122.html#ch3a

Do share if you found this useful

Share your thoughts on this topic in our  YouTube Community

Use our Robo-advisory Excel Template for a start-to-finish financial plan!

Join our courses in exclusive Facebook Groups!

  • 500+ members are now part of our new course, How to get people to pay for your skills! (watch 1st lecture for free). Learn how to get people to pay for your skills! Whether you are a professional or small business owner wanting more clients via online visibility or a salaried person wanting a side income or passive income, we will show how to achieve by showcasing your skills, building a community that trusts you and pays you!
  • 1822 members have signed for Goal-based portfolio management (watch 1st lecture for free). This is an online course to reduce fear, uncertainty and doubt while investing for a financial goal. Learn how to plan for your goals before and after retirement with confidence.

Want to check if the market is overvalued or undervalued? Use our market valuation tool (will work with any index!) or you buy the new Tactical Buy/Sell timing tool!
We publish mutual fund screeners and momentum, low volatility stock screeners on a monthly basis
About the Author Pattabiraman editor freefincalM. Pattabiraman(PhD) is the founder, managing editor and primary author of freefincal. He is an associate professor at the Indian Institute of Technology, Madras. since Aug 2006. Connect with him via Twitter or Linkedin Pattabiraman has co-authored two print-books, You can be rich too with goal-based investing (CNBC TV18) and Gamechanger and seven other free e-books on various topics of money management. He is a patron and co-founder of “Fee-only India” an organisation to promote unbiased, commission-free investment advice. He conducts free money management sessions for corporates and associations on the basis of money management. Previous engagements include World Bank, RBI, BHEL, Asian Paints, Cognizant, Madras Atomic Power Station, Honeywell, Tamil Nadu Investors Association, IIST Alumni Association. For speaking engagements write to pattu [at] freefincal [dot] com
About freefincal & its content policy Freefincal is a News Media Organization dedicated to providing original analysis, reports, reviews and insights on developments in mutual funds, stocks, investing, retirement and personal finance. We do so without conflict of interest and bias. Follow us on Google News Freefincal serves more than one million readers a year (2.5 million page views) with articles based only on factual information and detailed analysis by its authors. All statements made will be verified from credible and knowledgeable sources before publication. Freefincal does not publish any kind of paid articles, promotions or PR, satire or opinions without data. All opinions presented will only be inferences backed by verifiable, reproducible evidence/data. Contact information: letters {at} freefincal {dot} com (sponsored posts or paid collaborations will not be entertained)
Connect with us on social media
Our publications

You Can Be Rich Too with Goal-Based Investing

You can be rich too with goal based investingPublished by CNBC TV18, this book is meant to help you ask the right questions, seek the right answers and since it comes with nine online calculators, you can also create custom solutions for your lifestyle! Get it now. It is also available in Kindle format.
Gamechanger: Forget Startups, Join Corporate & Still Live the Rich Life You Want Gamechanger: Forget Start-ups, Join Corporate and Still Live the Rich Life you wantThis book is meant for young earners to get their basics right from day one! It will also help you travel to exotic places at low cost! Get it or gift it to a young earner

Your Ultimate Guide to Travel

Travel-Training-Kit-Cover-new This is a deep dive analysis into vacation planning, finding cheap flights, budget accommodation, what to do when travelling, how travelling slowly is better financially and psychologically with links to the web pages and hand-holding at every step. Get the pdf for Rs 199 (instant download)
Free android apps