NFO opens on July 9, 2021 and closes on July 23, 2021
Highlights:
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PGIM India Small Cap Fund is an open-ended equity scheme with an investment horizon of 5 or more years.
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Mix of top-down and bottom-up investment approach
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The fund will allocate minimum 65% of its corpus to small cap stocks
Mumbai, July , 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 hasgood 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 onhttp://www.pgimindiamf.com
Exit Load:
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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;
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Any redemptions/switch-outs in excess of the abovementioned 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;
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Nil – If the units are redeemed/ switched-out after 90 days from the date of allotment of units;