Introduction :
The key tenet of diversification is to invest across companies from different sectors and sizes which helps in reducing risk. When you are building your equity portfolio, it is essential to have exposure across Large, Mid and Small Cap companies to capture the growth potential of these companies.
However, each company (Large, Mid and Small) behaves differently when the tide turns against them. For instance, Large Cap firms can better withstand an economic downturn as compared to a small cap firm. That said, Small and Mid Cap firms offer potential for higher alpha as compared to Large Caps over the long run.
Thus, a Flexi Cap strategy helps investors get exposure to companies across this spectrum through one fund. Further, this strategy offers the flexibility to the fund manager to reduce or increase exposure to any segment (Large, Mid and Small) to capture the right opportunities.
What is PGIM India Flexi Cap Fund?
- Invests a minimum of 65% in equities and a maximum of 35% in debt
- Invests in an unconstrained fashion across different market segments —Large, Mid, and Small Cap.
Why you should invest in PGIM India Flexi Cap Fund?
- Diversified portfolio of strong growth companies with sustainable business models spread over a range of industries, sectors and market capitalizations.
- Flexibility to increase or decrease exposure to Large, Mid or Small Cap.
- Participate in themes beyond the large cap space.
What are the benefits of investing in PGIM India Flexi Cap Fund?
- An unconstrained investment strategy to take exposure toward all segment of the market.
- A diversified portfolio.
- Suitable for achieving long-term goals.
What should be the ideal time horizon of investing in PGIM India Flexi Cap Fund?
- At least five years and more.
Frequently Asked Questions
How to invest in PGIM India Flexi Cap Fund?
You can invest through multiple options:
- Website: You can invest through https://investors.pgimindiamf.com/auth/login by creating your profile and submitting identity details, and bank account information, and becoming KYC compliant.
- RIA/MFD: You can also invest through a Registered Investment Adviser or Mutual Fund distributor registered with SEBI/AMFI.
- Industry Portal: You can also invest through MF Utility or MF Central portals.
- Do consult your financial advisor before investing to understand if the fund fits into your risk profile.
Can I invest through SIP and lumpsum mode in PGIM India Flexi Cap Fund?
- You can invest lumpsum as well as through SIP mode.
- The minimum application amount under this fund is Rs 5,000 for a lumpsum transaction. You can invest a minimum of Rs 1,000 as additional investment
- You need to commit at least 5 installments (monthly or quarterly) with a minimum of Rs 1,000 per installment if you invest through SIP
What frequency/dates are allowed for Systematic Investment Plan (SIP), Systematic Transfer Plan (STP) and Systematic Withdrawal Plan (SWP) transactions in PGIM India Flexi Cap Fund?
- SIP: Any date of the month or quarter, as applicable.
- STP: Daily, Weekly, Monthly and Quarterly.
- SWP: Monthly, Quarterly and Annually.
How is PGIM India Flexi Cap Fund taxed?
Gains on investments redeemed before one year attract short term capital gains tax at 15%. Gains above Rs 1 lakh on investments sold after one year attract long term capital gains tax at 10%. Thus, long term capital gains of up to Rs 1 lakh are tax-free.