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.
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.
|Instrument||Indicative Allocations (% of total assets)||Risk Profile|
|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|
|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|
|Plans||Regular and Direct|
|Options (under each plan)||
|Minimum application amount||₹5,000 and in multiples of ₹1 thereafter|
|Additional application amount||₹1,000 and in multiples of ₹1 thereafter|
|This product is suitable for investors who are seeking**:||Riskometer|
**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.