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Key Highlights: 

*  PGIM India Retirement Fund opens for subscription on March 26, 2024, and closes on April 09, 2024.

*  PGIM India Retirement Fund will be benchmarked against the S&P BSE 500 TRI.

*  The portfolio is expected to have minimum 25% allocation towards large cap, midcap and small cap segments of the market, respectively.

Mumbai, 26 March 2024: Increasing longevity, rising healthcare costs and inflation necessitate saving for retirement at an early stage. Thus, it is advisable to prioritise saving and investing for your retirement goal as early as possible. Investing in equities through the retirement category of mutual funds during the accumulation phase has two benefits. One is taking advantage of the inflation beating probability of equities over long term and two - using a fund called ‘Retirement’ helps to anchor the commitment to your specific goal due to what experts call ‘mental accounting.’

PGIM India Mutual Fund today announced the launch of its open-ended Fund, PGIM India Retirement Fund. The fund has a lock-in of 5 years or till retirement age of 60 years (whichever is earlier).

The fund aims 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, REITs and InvITs, and fixed income securities.

Highlighting the importance of saving and investing for retirement, Ajit Menon, CEO, PGIM India Mutual Fund said, “Living longer is an underappreciated risk into retirement and leaves everyone grappling to find solutions. Most of our life goals such as home, education, car, can be fulfilled with a conventional loan but when it comes to retirement, we can’t fund it with a loan. Thus, it is essential for people to prioritise building their retirement corpus. Having a trusted financial advisor to help you plan your investments with a goal-based approach is advisable. Investing in a dedicated fund earmarked for retirement also helps in staying committed longer towards your goal and benefit from long term compounding.” 

Asset Allocation Pattern of PGIM India Retirement Fund

“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 fund will have a diversified portfolio across sectors. The fund will have minimum of 25% allocation towards large cap, midcap and small cap segments of the market, respectively. Companies with long term growth potential and sustainable business models are preferred. The portfolio will be built utilizing a combination of the top-down and bottom-up portfolio construction process, focusing on the fundamentals of each stock, including quality of management and prevailing valuations.

The fund will primarily use a bottom-up approach to identify companies with sound management and good growth prospects and a top-down approach for macro and thematic analysis. The fund managers would select companies with stable or high growth with due consideration to valuation. The fund managers would consider a range of quantitative and qualitative factors such as company’s business prospects, historical and present financial condition, capital allocation efficiency, operating cash flows, leverage position, valuation metrics, competitive edge, brand equity, strength of management and good corporate governance practices among others. The scheme may also invest in turn-around companies based on fund manager’s view.

The equity portion of the fund will be managed by Vinay Paharia, while the debt, REITs, & InVITs portion will be managed by Puneet Pal.

Fund Facts

* Exit Load: Nil

* 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.

The fund re-opens for continuous sale and repurchase within 5 Business Days from the date of allotment.

Mutual fund investments are subject to market risks, read all scheme related documents carefully.

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