Mutual Fund ALERT! PGIM India Small Cap Fund LAUNCHED - Check SIP options, exit load, asset allocation, plans, features and more

PGIM India Mutual Fund has 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. As per the information, 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. 

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The fund shall invest a minimum of 65 percent 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 Aniruddha Naha (for equity investments), Kumaresh Ramakrishnan (for debt and money market investments) and Ravi Adukia (for overseas investments).

Ajit Menon, CEO, PGIM India Mutual Fund said, “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,” he added. 

PGIM India Small Cap Fund features:

Asset Allocation:

1. Equity and Equity Related Instruments of Small Cap Companies- Minimum 65%, Maximum 100%. The risk profile is medium to high.

2. Equity & Equity Related Instruments of other companies- Minimum 0%, Maximum 35%. The risk profile is medium to high.

3. Debt and Money Market instruments (including cash and cash equivalents), Liquid and Debt Schemes of Mutual Fund- Minimum 0%, Maximum 35%. The risk profile is low to Medium.

4. Units issued by InVITs and REITs- Minimum 0%, Maximum 10%. the risk profile is medium to high.

Exit Load:

1. 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.

2. 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.

3. 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.