PGIM India Mutual Fund has launched ‘PGIM India Small Cap Fund’.
The scheme aims to achieve long-term capital appreciation by investing in small cap companies.
In a press release, Ajit Menon, CEO, PGIM India Mutual Fund said, “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.”
“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 Aniruddha Naha, Sr. Fund Manager-Equity and fund manager for PGIM India Small Cap Fund.
