“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 one gets is “Where do you think we should invest for 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 multicap strategy provides investors with a disciplined approach to diversify their exposure towards all market caps,” said Ajit Menon, CEO, PGIM India Asset Management.
The scheme will invest a minimum of 25% each in large, mid, and small-cap stocks. The remaining 0-25% will be allocated to opportunities across any or all of these market cap segments. Additionally, the scheme can invest up to 25% in debt, up to 10% in REITs and InvITs, and up to 20% in foreign securities, including overseas ETFs, according to the fund house’s press release.
“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 Asset Management.
The portfolio construction approach is bottom-up and well-diversified. The fund employs a Growth at a Reasonable Price (GARP) strategy with the flexibility to adjust between short, medium, and long-term growth opportunities based on market conditions. It may allocate to turnaround ideas, event-driven opportunities, and stocks demonstrating momentum, driven by medium to long-term earnings growth.
The fund aims to capitalize on themes such as healthcare, financialization, mobility, consumption, and new energy, which are emerging due to the structural changes occurring in the Indian economy.“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,” said Vivek Sharma, Senior Fund Manager – Equity, PGIM India Asset Management.The minimum application amount for the Initial Purchase or Switch-in is Rs 5,000, with subsequent investments in multiples of Re 1. For additional purchases, the minimum amount is Rs 1,000, with further investments in multiples of Re 1. For SIPs, the minimum number of installments is five, with each installment being at least Rs 1,000, and in multiples of Re 1 thereafter.
The exit load is 0.50% for redemptions within 90 days from the date of allotment of units for lump sum purchases, switches, SIPs, and STPs. There is no exit load for redemptions beyond 90 days from the date of allotment.