According to one media report, 61-year-old Mr Parikh was sitting in the backseat along with his wife, when the Volkswagen Jetta he was travelling in collided with a Chevrolet pickup. His wife, Geeta, is being treated for head and chest injuries, the report added.
The car was reportedly being driven by Rajeev Thakkar, chief investment officer of an asset management company founded by Mr Parikh. Mr Thakkar tweeted about the accident on Sunday.
It is with deep regret that I announce the demise of our founder and mentor @paragparikh in a road crash.— Rajeev Thakkar (@RajeevThakkar) May 3, 2015
The news of Mr Parikh's death came as a shock to the investor community and many took to twitter to express their grief on Monday.
So many firsts in equity investing, each one a tough and ethical stand, attributable to this one man. RIP Parag Parikh.— Uma Shashikant (@Uma_Shashikant) May 4, 2015
Deeply saddened for Parag Parikh's untimely demise. We've lost an original thinker, contrarian investor & a good human. May his soul RIP— Nirmal Jain (@JainNirmal) May 4, 2015
Mr Parikh, an alumnus of Mumbai's Sydenham College and the Harvard Business School, was a self-proclaimed Buffet fan. He was one of the biggest proponents of value investing (buying undervalued stocks) and believed in taking contrarian bets (investments that were against prevailing market trends) using the bottom up approach (looking at companies rather than sector).
He launched his own equity fund called Parag Parikh Financial Advisory Services Long Term Value Fund on May 28, 2013. His company ran just one scheme - a diversified equity scheme, and investors were asked to put money only for "long term", meaning a minimum period of five years.
"We will launch only one scheme and only an equity scheme because we are not into the marketing game," Mr Parikh had told NDTV's Prashant Nair in 2013. (Watch)
Mr Parikh repeatedly underscored the importance of selecting the right business to invest in and then being patient with the investment.
He asked investors to look for companies outside Sensex and Nifty, companies that are good businesses, run by credible management, have a good moat, good business model, low debt; companies that offered good return on investment, have strong brand, and attractive valuation. He liked companies that were in trouble because of factors beyond their control.
"A company is doing well and all of a sudden, there is some government intervention, then there could be temporary setbacks to the company. A good company, run by good management can find its feet," Mr Parikh believed
Mr Parikh was a pioneer when it came to Behavioral Finance - an emerging science that studies human behavior towards stock investing and money matters. He authored two books - "Stocks to Riches - Insights on Investor Behavior" (2005) and "Value Investing and Behavioral Finance: Insights in to Indian Stock Market Realities" (2009).
"Behavioral Finance is all about wearing a cloak of patience, eschewing greed and conquering fear," Mr Parikh had told NDTV.
As of March 31, 2015, the asset under management of PPFAS Long Term Value Fund stood at Rs 572 crore. His fund is invested in ICRA, Axis Bank, Zydus Wellness, Maharashtra Scooters, Noida Toll Bridge, ICICI Bank, etc. Among foreign companies, his fund owned shares in Google, UPS, IBM, 3M and Nestle. (Read)
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