All you need to know about NFO: PGIM India small-cap funds

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Today, that is on 9th July 2021 new fund offer has been opened by PGIM India. NFO closes on 23rd July 2021. Here, comes all the crucial information related to the NFO.

Objective:

The investment objective of this scheme is to achieve long-term capital appreciation by predominantly investing in equity and equity-related instruments of small-cap companies.

Asset allocation:

This scheme is going to invest highly in small-cap companies. Along with that, it will invest in other equities and equity-related instruments. Apart from it, in debt instruments and money market instruments and inVITs and REITs.

Risk profile:

This fund is having high risk because it is an equity scheme and which is going to invest more in small-cap companies. Again, small-cap companies are considered to be risky as these are small companies as per market capitalization.

Entry and exit load:

Entry Load: Not Applicable

Exit Load:

Exit load is nil for 10% of the units if redeemed from debt schemes within 90 days from the date of allotment.

Exit load of 0.50% will be charged for any redemptions/switch-outs done over the above-mentioned limit

If the units are redeemed/switched out after 90 days from the date of allotment of units, then the exit load will be nil.

Fund managers:

Total three fund managers are going to manage this scheme.

Mr. Aniruddha Naha

He currently manages 2 schemes. He has done a Master’s in Finance & control. He is having 19 years of industry experience.

Mr. Kumaresh Ramakrishanan

Kumaresh Ramakrishnan is currently managing 17 schemes. He has experience of almost 21 years in this field.

Mr. Ravi Adukia

Ravi Adukia is an Equity Analyst. He has over 15 years of experience. He is currently managing 2 schemes.

A minimum amount of purchase/subscription:

The minimum amount for purchase/subscription is 5000 Rs. and in multiples of Re. 1 thereafter. For an additional purchase, the minimum amount required is 1000 Rs. and in multiples of Re. 1 thereafter.

Benefits:

Diversification:

This scheme is risky but the important thing that needs to be noted is it is also going to invest in debt and money market instruments along with equity.

The expectation of higher return:

Here, the risk is very high. As risk and return have a direct relationship with each other.

Who should invest?

Investors who want to invest for the long-term can go for it. Investors who have a high-risk appetite can consider investing in this. Before doing investment, SID and KIM should be studied properly.

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