NFO alert: PGIM India Small Cap Fund closes on July 23

Blog | Mutual Funds

PGIM India Small Cap Fund is an open-ended mutual fund scheme that will predominantly invest in small-cap stocks.   

Good to know

What is a small-cap stock?

A small-cap company is one which is ranked beyond the top 250 as per market capitalisation. Small-cap stocks have the potential to give higher returns as compared to large and midcap stocks, but investing in them is also riskier as they tend to be more volatile.

Investment Objective

As the economy continues on its recovery path, the profitability of most companies are likely to receive a boost. In particular, small-cap companies that have survived the pandemic-induced economic downturn are expected to benefit from the demand revival. Taking advantage of this trend, PGIM Small Cap Fund is creating a diversified, small-cap-focused portfolio. 

For stock selection, the fund will examine parameters such as fundamentals of a company, valuations and quality of management. It will hunt for opportunities in various sectors including chemical, textile, paper, sugar and home improvement, where the presence of large and midcap companies is limited.

As fundamentally strong small-caps have the potential to scale up and gain market share, this fund is looking to generate alpha over the long-term. It is best suited for investors with a horizon of five years or more. 

Click here to invest in this NFO

Instrument Indicative Allocations (% of total assets) Risk Profile
Minimum Maximum
Equity & equity-related instruments of small-cap companies 65 100 Medium to high
Equity and equity-related instruments of other companies 0 35 Medium to high
Debt and money market instruments (cash and cash equivalents), liquid and debt schemes of mutual funds 0 35 Low to medium
Units issued by REITs and INVITs 0 10 Medium to high

Scheme details

Name PGIM India Small Cap Fund
Type An open-ended equity scheme predominantly investing in small-cap stocks
Category Equity-based mutual fund
Investment objective To achieve long term capital appreciation by predominantly investing in equity and equity related instruments of smallcap companies.

However, there can be no assurance that the investment objective of the scheme will be achieved. The scheme does not guarantee/ indicate any returns.

Benchmark Nifty Small Cap 100 TRI Index
Entry/Exit Load
  • Entry load: Nil
  • Exit load: Within 90 days: 0.5%
    After 90 days: Nil
Fund managers
  • Mr. Aniruddha Naha
  • Mr. Kumaresh Ramakrishnan
Plans  Regular and Direct
 Options (under each plan)
  • Payout of Income Distribution cum Capital Withdrawal facility (IDCW - Payout)
  • Reinvestment of Income Distribution cum Capital Withdrawal facility (IDCW - Reinvestment).
Minimum application amount ₹5,000 and in multiples of ₹1 thereafter
Additional application amount ₹1,000 and in multiples of ₹1 thereafter

Click here to invest in this NFO

This product is suitable for investors who are seeking**: Riskometer
  • Capital appreciation over the long-term 
  • Investment in equity and equity-related instruments of small-cap companies

**Investors should consult their financial advisors if in doubt about whether the product is suitable for them. 

Note: The above information has been sourced from the Scheme Information Document provided by PGIM India Mutual Fund. To read the entire document, click here

Disclaimer: RKSV Securities India Private Limited (ARN/Distributor - 107930; brand name Upstox) is the distributor of the mutual fund. Please consult your investment advisor before investing.

Mutual Fund investments are subject to market risks, read all scheme related documents carefully.