BIZ~COM
PGIM India Mutual Fund, has launched an open-ended retirement solution-oriented scheme having a lock-in of five years or till the retirement age.
The new fund offer (NFO) for PGIM India Retirement Fund opened on March 26 and will close on April 9.
The investment objective of the scheme is to provide capital appreciation and income to investors in line with their retirement goals by investing in a mix of securities comprising equity, equity-related instruments, real estate investment trusts (REITs) and infrastructure investment trusts (InvITs), and fixed-income securities.
The fund strategy will have a minimum allocation of 25 percent each to large-cap, mid-cap, and small-caps, which is in line with the investment mandate of multi-cap funds.
PGIM India Retirement Fund will have 75-100 percent exposure to equity and equity related instruments, 0-25 percent to debt securities and money market instruments and 0-10 percent to units issued by REITs and InVITs.
“India is poised to be amongst the fastest growing G20 economy in the next few years as per the estimates by various global agencies. Over the long term, corporate earnings track the growth in nominal GDP of a country and stock prices track growth in earnings. There is a continuing opportunity for investing in high growth and good quality Large and Mid-Cap companies which can take advantage of the India growth story. Such companies can continue to compound capital at a rapid pace in a capital-efficient manner for a long period of time. Thus, a diversified portfolio of high growth and good quality stocks can help build a robust retirement corpus,” says Vinay Paharia, CIO, PGIM India Mutual Fund.
The equity portion of the fund will be managed by Vinay Paharia, while the debt, REITs, & InVITs portion will be managed by Puneet Pal.
Lock in 5 years or till the age of retirement (60 years), whichever is earlier. (The lock in period is also applicable when investor moves out of the PGIM India Retirement Fund to any other scheme within the fund house, before the mandatory lock in period of 5 years or retirement age, whichever is earlier. Transfer-out of the scheme shall be allowed subject to 5 years lock in period from the date of allotment of units or attainment of retirement age of 60 years, whichever is earlier), subject to exit load, if any.)
· Initial Purchase/Switch-in: Minimum of Rs. 5,000/- and in multiples of Re. 1/-thereafter.
· Additional Purchase: Minimum of Rs. 1,000/- and in multiples of Re. 1/-thereafter.
· For SIPs: Minimum no. of 5 instalments and minimum amount per instalment – Rs. 1,000/- each and in multiples of Rs.1/- thereafter.
