Parag Parikh IFSC
S&P 500
Fund of Fund
Invest in the core of the American economy. Access the 500 leading publicly traded companies representing ~80% of the US equity market via a tax-efficient GIFT City structure.
Why S&P 500?
Market Dominance
Represents ~80% of total US equity market cap
Quality Gate
Requires positive earnings for last 4 quarters
Global Foundation
Benchmarked by 90% of US Equity Funds
Why Invest in this Fund?
The GIFT City Advantage
Investing through PPFAS GIFT City provides structural advantages over direct investing or traditional feeder funds.
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No Inheritance Tax:
Mitigates US estate tax implications (typically 40%) for non-US residents.
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Tax Efficient Structure:
Tax is paid at the fund level. No complex tax filing compliance for investors in the US.
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Cost Optimization:
Pooled vehicle structure reduces individual transaction costs and FX conversion spreads.
The S&P 500 Edge
Survivorship by design filters out laggards, favoring profitable, future-ready leaders.
Full economic coverage
Ensures high liquidity
Must have positive earnings for last 4 quarters
Portfolio Composition
Diversified Exposure Across Industries
Sector Allocation
*Source: S&P Global. Allocations subject to change.
Top 10 Constituents
| Company | Sector | Weight |
|---|---|---|
| Nvidia | Info Tech | 7.24% |
| Microsoft | Info Tech | 6.28% |
| Apple | Info Tech | 6.25% |
| Alphabet | Comm Svcs | 5.05% |
| Amazon | Cons Disc | 3.96% |
| Meta | Comm Svcs | 3.15% |
| Broadcom | Info Tech | 2.66% |
| Tesla | Cons Disc | 2.36% |
| Berkshire Hath. | Financials | 1.76% |
| Oracle | Info Tech | 1.48% |
Rolling Returns Snapshot
S&P 500 Index Performance (1991 - 2024)
*Source: S&P Global. Data in USD terms calculated on index directly. Net total return averages 1-2% above price index due to dividends. Past performance may or may not be sustained in future.
S&P 500 vs. Nasdaq 100
Understanding the key structural differences
S&P 500
- Sector Focus Diversified (IT ~33%)
- Company Count 500
- Entry Criteria Profitability Required
- Rebalancing Committee Driven
- "Valuation moderates during downturns due to diversified coverage including defensive names."
NASDAQ 100
- Sector Focus Tech Heavy (IT ~64%)
- Company Count 100
- Entry Criteria No Profitability Rule
- Rebalancing Quarterly & Annual
- "More prone to valuation bubbles/crashes but captures pure innovation-led growth."
The USD Advantage
Historical depreciation of the INR against the USD adds a potential layer of returns for Indian investors.
Over the last two decades, the Indian Rupee has depreciated against the US Dollar at an average rate of approx 3% per annum. Investing in USD denominated assets provides a hedge against domestic currency depreciation.
Why Global Allocation?
- 1Reduced Home Bias Diversify beyond the Indian economy.
- 2Reserve Currency Invest in the world's primary reserve currency.
- 3Portfolio Hedge USD tends to strengthen during global crises.
Active vs. Passive
Data shows that consistent alpha generation in large-cap US equities is incredibly difficult. The S&P 500 Index consistently outperforms the majority of active large-cap funds.
underperformed the S&P 500 in 2023
*Source: S&P Global Indices Versus Active (SPIVA) Scorecard.
Fund Facts
Key Information for Investors
Who Can Invest?
Indian resident individuals (via LRS), Corporates, Trusts, Partnership Firms, and other eligible persons.
The Leadership Team
Guided by experienced professionals
Neil Parag Parikh
Chairman & CEO
MBA from IESE Business School, Spain. Associated with the firm since 2004.
Rajeev Thakkar
Chief Investment Officer
CA, CFA, CFP. Over 15 years of experience in capital markets. CIO since 2003.
Nirmal Bari
Principal Officer
BE, PGDM. 11+ years experience in Equity Research, PE & Venture Debt.
Akshay Falgunia
Fund Manager
CA. 7+ years experience in equity research covering Indian & Global markets.
How to Invest
Simple three-step process to start your global investment journey.
Open Account
Complete the KYC and open an investment account online via our digital portal.
Remit Funds
Transfer USD from your bank account to the GIFT City bank account.
Transact
Log in to the portal, select the desired fund, and execute your transaction.
Downloads & Resources
Essential documents for the S&P 500 FoF.
Factsheet
Monthly Update
Presentation
Scheme Strategy Deck
PPM / SID
Private Placement Memo