PGIM India Mutual Fund launches ‘PGIM India Small Cap Fund’
PGIM India Mutual Fund launches
‘PGIM India Small Cap Fund’
NFO opens on July 9, 2021 and closes on July 23, 2021
Highlights:
PGIM India Small Cap Fund is an open-ended equity scheme with an investment horizon of 5 or more years.
Mix of top-down and bottom-up investment approach
The fund will allocate minimum 65% of its corpus to small cap stocks
India, July 08, 2021: PGIM India Mutual Fund announced the launch of ‘PGIM India Small Cap Fund’. The NFO will open for subscription on July 9, 2021 and will close on July 23, 2021. The Benchmark Index of the fund is Nifty Small Cap 100 Total Return Index. The investment objective of the scheme is to achieve long term capital appreciation by predominantly investing in equity and equity related instruments of small cap companies. The fund shall invest a minimum of 65% of its corpus in the small cap companies and may also seek to participate in the growth of other equity and equity related instruments in order to achieve optimal portfolio construction. The Fund will be managed by Mr. Aniruddha Naha (for equity investments), Mr. Kumaresh Ramakrishnan (for debt and money market investments) and Mr. Ravi Adukia (for overseas investments).
Investing in small caps has good potential to create wealth and generate alpha over the long term. The economy, as it revives and demand plays out, the full value chain across sectors benefits, including small cap companies. Along with economic data improving, corporate profitability of small cap companies can be expected to improve.
“We believe that listed entities in the small-cap segment are the biggest beneficiaries of developments such as significant recovery in corporate earnings, expected in the coming months coupled with multiple tailwinds like the government trying to boost manufacturing through PLI schemes, lower taxation, and various concessions. Industry consolidation is more pronounced in the areas where the small caps operate because most small-cap companies compete with the unorganized players. In order to capture quality investment opportunities, we have launched the PGIM India Small Cap Fund. Idea is to help investors gain exposure to business segments like construction, textiles, real estate, chemicals and agrochemicals, Industrials, paper and the like that find limited representation in the large-cap space” said Mr. Ajit Menon, CEO, PGIM India Mutual Fund
“The best pockets of returns over time are good quality small caps which are supported by earnings and reasonable valuations. They benefit from both the legs of earnings growth and a chance of a PE rerating, which helps them graduate from a small cap to a midcap and eventually a large cap.” said Mr. Aniruddha Naha, Sr. Fund Manager-Equity and fund manager for PGIM India Small Cap Fund
PGIM India Small Cap Fund Features:
Asset Allocation:
Instruments
Indicative allocations
(% of total assets)
Risk Profile
Minimum
Maximum
High/Medium/Low
Equity & Equity Related Instruments of Small Cap Companies
65%
100%
Medium to High
Equity & Equity Related Instruments of other companies
0%
35%
Medium to High
Debt and Money Market instruments (including cash and cash equivalents), Liquid and Debt Schemes of Mutual Fund
0%
35%
Low to Medium
Units issued by InVITs and REITs
0%
10%
Medium to High
For more details on Asset Allocation, please refer Scheme Information Document of the Scheme on www.pgimindiamf.com
Exit Load:
• 10% of the units allotted may be redeemed/switched-out to debt schemes / PGIM India Arbitrage Fund without any exit load within 90 days from the date of allotment;
• Any redemptions/switch-outs in excess of the above mentioned limit would be subject to an exit load of 0.50%, if the units are redeemed/switched-out to debt schemes/PGIM India Arbitrage Fund within 90 days from the date of allotment of units;
• Nil - If the units are redeemed/ switched-out after 90 days from the date of allotment of units;
Plans and Options: Regular Plan and Direct Plan. Growth, Payout of Income Distribution cum Capital Withdrawal facility (IDCW-Payout) and Reinvestment of Income Distribution cum Capital Withdrawal facility (IDCW- Reinvestment).
Minimum Amount of Investment: Initial Purchase – Minimum of Rs. 5,000/- and in multiples of Re.1/- thereafter.
Additional Purchase - Minimum of Rs.1,000/- and in multiples of Re.1/- thereafter.
Systematic Investment Plan (SIP): Minimum 5 instalments of Rs. 1,000/- each and in multiples of Rs.1/- thereafter for Monthly and Quarterly SIP.
Minimum SIP Top up amount for Monthly and Quarterly SIP is Rs. 100/- and in multiples of Re. 1/-
About PGIM India Mutual Fund
PGIM India Mutual Fund is a wholly owned business of PGIM, the global investment management business of the US based Prudential Financial, Inc. (PFI). PGIM India Asset Management is the full service investment manager of PGIM India Mutual Fund, offering a broad range of equity and fixed income solutions to retail and institutional investors throughout the country. We manage 21 open-ended funds operated by 15 investment professionals. In addition to managing our investors assets through domestic Mutual Funds, we also offer Offshore Funds and Portfolio Management Services. The fund house leverages the strength and stability of PGIM’s 140-year legacy to build on its decade long history in India.
Headquartered in Mumbai, PGIM India Mutual Fund has a presence in 27 cities across the country including branches in Ahmedabad, Bangalore, Chennai, Delhi, Hyderabad, Kolkata and Pune. PGIM India Mutual Fund brings a rich blend of global resources, intellectual acumen and local investment expertise and is committed to designing superior and meaningful, wealth-building solutions for our investors. PGIM India provides unique training and educational programs for building exceptional capabilities and best business practices for its business associates. For more information, please visit http://www.pgimindiamf.com/
