The minimum investment in this fund can be made up to Rs.5,000 and in multiples of Rs.1/- thereafter. On the other hand, if you want to make additional purchases, then a minimum investment of Rs 1,000 and thereafter in multiples of Re 1 can be invested.
PGIM India Mutual Fund has announced the launch of PGIM India Small Cap Fund. The NFO will open for subscription on July 9, 2021 and close on July 23, 2021. The benchmark index of the fund is Nifty Small Cap 100 Total Return Index. The objective of the scheme is to generate long-term capital in the form of profit by investing primarily in equity and equity-linked instruments of small cap companies.
The fund will invest a minimum of 65% of its corpus in small cap companies and seek to leverage the momentum of other equity and equity related products to make the portfolio attractive. The fund will be managed by Aniruddha Naha (for equity investments), Kumaresh Ramakrishnan (for debt and money market investments) and Ravi Adukia (for foreign investments).
Benefits of investing in small caps
Investing in small caps has the potential to build wealth and generate huge returns over a long period of time. The economy is coming back on track and demand is increasing, which will benefit the entire value chain in all sectors including small cap companies. Along with the improvement in economic data, corporate profits of small cap companies are expected to improve.
Your money will be spent in these sectors
Ajit Menon, CEO, PGIM India Mutual Fund said, “We believe that listed companies in the small-cap segment will benefit the most from the growth. Initiatives such as significant improvement in corporate earnings, efforts to boost manufacturing through PLI schemes by the government in tandem with several sectors, lower taxation, and various concessions will have the expected impact in the coming months, which will benefit small-caps. Most of the small-cap companies compete with the unorganized companies. So to avail quality investment opportunities, we have launched PGIM India Small Cap Fund. The objective is to limit investments in large-caps to benefit from the growth of the sector by giving investors an opportunity to invest in a range of business categories such as construction, textiles, real estate, chemicals and agrochemicals, industrials, paper.
These are the conditions of investment
10% of the allotted units can be redeemed/switch-out to Loan Schemes/PGIM India Arbitrage Fund without any exit load within 90 days from the date of allotment Any withdrawal/switch-out in excess of the above limit 0.50% will be subject to withdrawal charges of Rs.500/-, if the units are redeemed/switch-out to Loan Schemes/PGIM India Arbitrage Fund within 90 days from the date of allotment. If the units are redeemed/switch-out after 90 days from the date of allotment of the units, the withdrawal charges will be nil.
You can invest from Rs 5000
The initial minimum investment can be made up to Rs.5,000 and in multiples of Rs.1/- thereafter. On the other hand, if you want to make additional purchases, then a minimum investment of Rs 1,000 and in multiples of Rs 1 can be made thereafter. Minimum 5 installments of Rs 1,000 for Systematic Investment Plan (SIP) and 1 for monthly and quarterly SIPs thereafter Investments can be made in multiples of Rs.
