2024-08-31 22:34:26
Mumbai: PGIM India Mutual Fund today announced the launch of its New Fund Offer PGIM India Multi Cap Fund. It is an open-ended equity scheme investing in large-cap, mid-cap and small-cap stocks. The fund is benchmarked against Nifty 500 Multicap 50:25:25 TRI. The New Fund Offer (NFO) opens for subscription on August 22, 2024 and closes on September 5, 2024.
Multi cap means diversification
Ajit Menon, CEO, PGIM India Asset Management, says that given the near-term volatility in equity markets, a common question we get is “What do you think about the markets?” This is a difficult question to answer and is anyone’s guess. However, the second follow-up question is “Where do you think we should invest in the current market conditions?” This can be best answered by a trusted advisor, looking at each investor’s specific situation and goals. A simple answer to this can be to be disciplined and invest across market caps. A multi-cap strategy offers investors a disciplined way to diversify their exposure to all market caps.
Good time to invest in a diversified portfolio
According to Vinay Pahadia, CIO, PGIM India Asset Management, “We believe this is a good time to invest in a diversified portfolio of good quality and high growth companies, as they have underperformed in the last few years despite strong growth in their intrinsic values. We have seen early signs of outperformance of this strategy in the last few months following the election results and the change in monetary policy by the Bank of Japan.”
Investment in all three categories
The scheme will invest at least 25% in all three categories of largecap, midcap and smallcap stocks, while the remaining 0-25% will typically be invested in ground-up opportunities in any or all of the three market cap buckets. The scheme also has a provision to take exposure to up to 25% in debt, up to 10% in REITs and InvITs and up to 20% in foreign securities including overseas ETFs. The equity portion of the scheme will be managed by Vivek Sharma, Ananda Padmanabhan Anjaneyan and Utsav Mehta, while the debt portion will be managed by Punit Pal.
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