Investment Objective
PGIM India Small Cap Fund seeks to achieve long term capital appreciation by primarily investing in equity and equity related securities of small cap companies.
Investment Strategy
- The fund invests at least 65% of its portfolio in small cap companies. It may also invest in other equities and equity related instruments to build an optimal portfolio.
- The investment strategy follows a combination of the top-down and bottom-up approach, focusing on the fundamentals of the companies and their quality of management, Return on Equity (ROE), growth, free cash flow generation and leverage ratios.
- It has the flexibility to invest in companies across sectors.
- The portfolio construction and stock selection process is based on Growth at Reasonable Price (GARP) Principle.
- It prefers to invest in companies backed by good management and having the ability to scale-up its business.
- It prefers companies having re-rating potential due to higher growth potential in the future.
Who Should Invest
- Investors having investment horizons of 5 years and above.
- Those seeking long term capital appreciation by investing in equity and equity related instruments of small cap companies.
- Those seeking to complement their core equity portfolio with the potential for higher risk-adjusted returns.
- Those having higher risk appetite and who can withstand the volatility associated with investment in small cap companies.