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PGIM Mutual Fund has launched PGIM India Multi Cap Fund, an open-ended equity scheme investing in large, mid and small cap sectors.
The scheme will invest a minimum of 25% each in large, mid and small-cap stocks, respectively. The fund is benchmarked against Nifty 500 Multicap 50:25:25 TRI.
In a press release, Ajit Menon, CEO, PGIM India MF said, “Given near-term volatility in the equity markets, a typical question we face is ‘What do you think about the markets?’ That’s a difficult one to answer and anybody’s guess. However, the second follow-up question is ‘Where do you think we should invest in the current market conditions?’ While this is best answered for each individual’s specific situation and goals by a trusted advisor, a simple step could be to take exposure to all market capitalizations in a disciplined format. A multi-cap strategy gives investors a disciplined approach to diversify their exposure towards all market caps.”
"We believe it’s a good time to invest in a diversified portfolio of good quality and high growth companies, as these have significantly underperformed in the last few years despite strong growth in their intrinsic values. We have seen early signs of outperformance of this strategy post the election results and the change in Bank of Japan's monetary policy, in the last couple of months," said Vinay Paharia, CIO, PGIM India MF.
Vivek Sharma, Senior Fund Manager - Equity, PGIM India MF, said, “There are good long-term opportunities available across market capitalizations which will benefit from India's growth juggernaut. What we need is careful stock picking and a balanced portfolio to take advantage of this. It is imperative to have exposure to all market capitalizations at all times which also changes appropriately according to the opportunities available. PGIM India Multi Cap Fund aims to do just that.”
Vivek Sharma, Anandha Padmanabhan Anjeneyan and Utsav Mehta will co-manage the equity section and Puneet Pal will manage the debt.
