PGIM India Mutual Fund has said that this new fund will invest at least 65 percent of its corpus in small cap companies. In addition, it will also invest in other stocks and share related instruments to build a portfolio with optimum returns.
PGIM India Mutual Fund is coming up with an NFO named ‘PGIM India Small Cap Fund’. This NFO will open for subscription from Friday (9 July 2021) and will close on 23 July 2021. The benchmark index of NFO will be Nifty Small Cap 100 Total Return Index. The fund will invest in shares of small cap companies and share related instruments.
PGIM India Mutual Fund has said that this new fund will invest at least 65 percent of its corpus in small cap companies. Along with this, it will also invest in other stocks and share related instruments to build a portfolio according to the maximum returns. The fund will be managed by Aniruddha Naha (for equity investment), Kumaresh Ramakrishnan (for debt and money market investments) and Ravi Adukia (for foreign investment).
Good prospects in small caps
PGIM India Mutual Fund CEO Ajit Menon said that the government is promoting manufacturing through the PLI scheme. At the same time, it is taking many measures of exemption including reducing tax, so corporate earnings are likely to increase in the coming months. This environment will prove to be favorable for small cap segment companies. These steps of the government will greatly benefit the companies listed in the stock market.
What is the minimum investment required?
You can invest at least 5 thousand in NFO and after that in multiples of Rs 1. 1000 for additional purchases and then in multiples of Re 1 thereafter. If you want to invest through SIP, then you have to pay at least five installments of Rs 1000 and then in multiples of Re 1. For monthly and quarterly SIP top amount will be 100 and multiples of Re 1 thereof. Analysts believe that the small cap fund has good growth prospects. So fund houses are trying to capitalize on it.
