Mutual Fund News : PGIM Mutual Fund Introduces PGIM India Small Cap Fund

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PGIM Mutual Fund has launched an open-ended equity scheme – PGIM India Small Cap Fund.

The scheme will predominantly invest in Small cap stocks.

The investment objective of PGIM India Small Cap Fund is to achieve long term capital appreciation by predominantly investing in equity and equity related instruments of small cap companies.

Under normal circumstances, 65% to 100% of the funds portfolio will be invested in Equity & Equity related instruments of Small Cap Companies. The Scheme will invest 0% to 35% of its assets in Equity & Equity Related Instruments of other companies. Whereas upto 35% of its assets can be invested in Debt and Money Market instruments (including cash and cash equivalents), Liquid and Debt Schemes of Mutual Fund. The Scheme may also invest 0% to 10% of its net assets in Units issued by InVITs and REITs.

The investment strategy of PGIM India Small Cap Fund as mentioned in the Scheme Information Document (SID) is as follows,

PGIM India Small Cap Fund seeks to capture opportunities available in the small cap segment. Small Cap companies are companies which have a market capitalization of less than the 250th listed company in terms of market capitalization, as declared by AMFI.

The fund shall invest a minimum of 65% of its corpus in the small cap companies. The scheme may also seek to participate in the growth of other equity and equity related instruments in order to achieve optimal portfolio construction.

The portfolio will be built utilizing a combination of the top-down and bottom-up portfolio construction process, focusing on the fundamentals of each stock, including quality of management. The fund manager will aim to build a diversified portfolio with exposure across sectors, given the fact that small cap stocks present a much wider universe compared to Large and Midcap listed universe.

The Scheme may also invest a certain portion of its corpus in debt and money market securities. Investment in debt securities will be guided by credit quality, liquidity, interest rates and their outlook.

The Scheme may invest in other scheme(s) managed by the AMC or in the scheme(s) of any other mutual fund, provided it is in conformity with the investment objectives of the Scheme and in terms of the prevailing Regulations.

PGIM India Small Cap Fund’s performance will be benchmarked against Nifty Small Cap 100 TRI (Total Return Index).

The fund will be managed by Mr Aniruddha Naha (equity), Mr Kumaresh Ramakrishnan (debt), and Mr Ravi Adukia (overseas).

The NFO opens for subscription on July 09, 2021, and closes on July 23, 2021. The scheme will reopen for continuous sale and repurchase within 5 business days from date of allotment.

The fund’s NAV is priced at Rs 10/- per unit during the NFO period. The minimum subscription amount is Rs 5,000 and in multiples of Re 1 thereafter.

The fund offers Regular Plan and Direct Plan having Growth Option and Payout of Income Distribution cum Capital Withdrawal Option (Re-investment and Pay-out facility).