The open-ended equity fund is aimed at long-term capital growth via investing in equity securities of companies located in emerging markets
PGIM India MF, one of the top 10 largest investment managers in the world, has recently announced its new offering, the PGIM India Flexi Cap Fund. The fund is an open-ended one benchmarked with MSCI Emerging Markets Index, and will be managed in India by A Anandha and Aniruddha Naha. While A Anandha is the AVP-Equities with PGIM India, he brings with him 12 years of experience in financial services. Of these, he spent 8 years in the capital markets. Meanwhile, Aniruddha Naha is Director and Senior Fund Manager at PGIM India, and he brings to the fund his considerable experience in Equities and Asset Management.
What is the PGIM India Flexi Cap Fund?
Broadly, it is an open-ended dynamic equity scheme (including derivatives) that will invest across a range of large-, mid- and small-cap stocks in new and emerging markets.
Earlier known as the PGIM India Diversified Equity Fund, it was devised as an option to generate long-term capital growth from investing in companies from emerging markets via the PGIM Jennison Emerging Markets Equity Fund. The scheme has a range of key features that suit high risk investors looking to accelerate their investments in new markets. The fund’s involvement with new and emerging markets taps into their higher propensity for consumption, greater resilience to shifting trends and a higher appetite for technological intervention and innovation to drive growth.
The fund drives a disciplined approach to investment management, with a strong focus on RoCE and RoE, favouring industries about to consolidate, while underlining solid financials and sector dominance. It makes investment possible in themes not currently available through large caps (real estate, software, chemicals, discretionary retail, etc.)
The key features of the PGIM India Flexi Cap Fund are:
- A Nifty 500 TR Index
- A concentrated portfolio of 35-45 stocks
- Minimum application amount of Rs 5,000, an additional purchase of Rs 1,000 thereafter
- 10% of the allotted units may be switched to debt schemes or PGIM India Arbitrage Fund or redeemed without an exit load within 90 days of allotment. Redemptions and switch-outs over 10% of allotted units would be charged 0.5% exit load, and 0% on redemptions or switch-outs over 90 days, and between open-ended equity schemes and hybrid schemes.
- The fund focusses on companies working with existing products in new markets
- Constant monitoring with stock level risk evaluation to minimise or eliminate the high correlation between stocks in the same sector
- The scheme is best for investors looking to invest in overseas MFs of equity securities of companies in emerging markets, with the companies in the early stages of growth
The fund is expected to tap into the higher recorded middle-class spending in emerging markets, whose regions and sectors have the potential to grow exponentially at a rapid pace, thus ensuring long-term capital growth for investors. It has already performed well with both its options – Regular and Direct – since its inception in September 2007. Investors must note that from October 24, 2020, the benchmark of the Scheme is MSCI Emerging Markets Index.
About PGIM India
PGIM India is the global investment management business of Prudential Financial Inc. (PFI) USA. It currently has over $1.5 trillion of assets under its management and offers a broad range of investment options through a successful multi-manager model backed by experienced investment teams. PGIM offers the latest market insights, deep expertise and stability backed by a legacy of 140 years of managing money with a long-term perspective and by weathering market cycles and unexpected disruptions.