PGIM India Multicap NFO Opens: Fund Follows GARP Investment Style

Introduction

PGIM India Mutual Fund has launched a New Fund Offer (NFO) for its Multicap Fund, a unique investment opportunity that offers diversified exposure across large, mid, and small-cap stocks. The NFO opens on August 22, 2024, and closes on September 5, 2024. This blog will explore the features, benefits, and suitability of this fund for investors seeking to maximize their growth potential.

What Are Multicap Funds?

Multicap funds are equity-oriented schemes that invest across different market capitalizations—large, mid, and small caps. Unlike other funds that may focus on a specific segment of the market, multicap funds provide a balanced approach by ensuring a minimum allocation of 25% to each segment. This strategy offers a diversified portfolio that can capture growth opportunities across the market spectrum.

Why Choose PGIM India Multicap Fund?

The PGIM India Multicap Fund is designed to offer broad market exposure with a disciplined allocation strategy. Here are some key reasons why this fund might be a compelling choice:

• Diversified Exposure: The fund ensures a minimum allocation of 25% to large, mid, and small-cap stocks, providing a balanced approach to market participation.
• Growth Potential: By investing in both established and emerging sectors, the fund aims to capture growth opportunities in sectors like healthcare, financialization, mobility, and new energy.
• Risk Mitigation: The fund’s diversified portfolio helps mitigate the risks associated with investing in a single market capitalization, offering a more stable investment experience.

Investment Strategy and Fund Managers

The PGIM India Multicap Fund follows a Growth at Reasonable Price (GARP) investment style, with the flexibility to tilt between value and growth as per market conditions. The fund managers, Vivek Sharma, Anandha Padmanabhan, Utsav Mehta, and Puneet Pal, focus on constructing a diversified, bottom-up portfolio that combines both growth and stability. This approach allows for the inclusion of companies that exhibit market share growth, challengers, and disruptors in various sectors.

Who Should Invest?

The PGIM India Multicap Fund is suitable for:

• Investors seeking diversification: Those looking to invest across large, mid, and small-cap companies in a single fund.
• Long-term investors: Individuals with a long-term investment horizon of five years or more.
• Balanced approach seekers: Investors aiming for a combination of growth and stability in their portfolio.

Key Fund Facts

• NFO Period: August 22, 2024, to September 5, 2024
• Minimum Application Amount: Rs 5,000 and in multiples of Rs 1 thereafter
• Exit Load: 0.50% for exits within 90 days from the date of allotment; Nil thereafter
• Benchmark Index: Nifty 500 Multicap 50:25:25 TRI

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Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.