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PGIM India Mutual Fund has launched PGIM India Retirement Fund which is an open-ended scheme with a 5-year lock in period or till retirement age of 60 years (whichever is earlier).
The portfolio is expected to have a minimum 25% allocation towards large cap, midcap and small cap segments of the market, respectively. The fund will invest in a mix of securities comprising equity, equity related instruments, REITs and InvITs and fixed income securities.
The equity portion of the fund will be managed by Vinay Paharia, CIO, PGIM India MF while the debt, REITs, & InvITs portion will be managed by Puneet Pal, Head of Fixed Income, PGIM India MF.
In the press release Ajit Menon, CEO, PGIM India MF said, “Living longer is an underappreciated risk into retirement and leaves everyone grappling to find solutions. Most of our life goals such as home, education, car can be fulfilled with a conventional loan but when it comes to retirement, we can’t fund it with a loan. Thus, it is essential for people to prioritise building their retirement corpus. Having a trusted financial advisor to help you plan your investments with a goal-based approach is advisable. Investing in a dedicated fund earmarked for retirement also helps in staying committed longer towards your goal and benefit from long term compounding.”
Vinay Paharia, CIO, PGIM India MF said, “India is poised to be amongst the fastest growing G20 economy in the next few years as per the estimates by various global agencies. Over the long term, corporate earnings track the growth in nominal GDP of a country and stock prices track growth in earnings. There is a continuing opportunity for investing in high growth and good quality large and mid-cap companies which can take advantage of the India growth story. Such companies can continue to compound capital at a rapid pace in a capital-efficient manner for a long period of time. Thus, a diversified portfolio of high growth and good quality stocks can help build a robust retirement corpus.”
