PGIM India Equity Mutual Fund

Investment Objective

The investment objective of the PGIM India Equity Mutual Fund schemes is to give investors a chance to increase their wealth over the long term. According to their mandate, which is defined in their plan information documents, these funds invest primarily in equities and equity-related securities in a particular proportion. After conducting a thorough study, the fund manager will select high-quality equities to guarantee that the PGIM India Equity Mutual Fund return returns continue to meet expectations and category benchmarks. Also, it takes place when the dividends paid out by the fund are reinvested to buy more units of the plan.

Risks Involved in PGIM India Equity Mutual Fund

Compared to debt and balanced funds, PGIM India Equity Mutual Fund risk ranges from relatively high to high. The fund's value may change as and when the underlying stock price does. The degree of portfolio diversity also affects the PGIM India Equity Mutual Fund risk. Market risk is higher for the sector- or theme-based PGIM India Equity Mutual Fund schemes than for diversified equity funds. Large-cap equity funds will be less risky than small-cap or mid-cap equity funds. When investing in a scheme, investors may consider their personal risk tolerance.

Return Potential of PGIM India Equity Mutual Fund

Returns are a byproduct of the investor's assumed risk. Compared to debt and balanced funds, PGIM India Equity Mutual Fund returns are high. These funds have a track record of producing returns that hover around 12% on average during periods longer than five years. The PGIM India Equity Mutual Fund performance can change from one period to the next, and they do not promise assured returns. A focused fund may have a more significant return potential than a broad equities fund due to its increased risk. On the other hand, large-cap funds are renowned for offering consistent returns during all market cycles. To increase returns, consider diversifying the portfolio with a few small- or mid-cap funds.

Who Should Invest in PGIM India Equity Mutual Fund?

Investors looking for long-term financial appreciation over five years or more will find the PGIM Equity mutual fund schemes ideal. These funds are intended for investors with a comparatively higher risk tolerance because the fund value may increase or decrease depending on market conditions. The high PGIM India Equity Mutual Fund return potential makes them the perfect choice for achieving long-term objectives, including saving for a home, retirement, and children's education.

Things To Consider Before Investing in PGIM India Equity Mutual Fund

The following must be considered before investing in PGIM India Equity mutual fund schemes.

• Investment goal
• Investment time horizon
• Risk appetite
• Mutual fund volatility
• Asset allocation

Tax on PGIM India Equity Mutual Fund

If you redeem your PGIM India Equity Mutual Fund units within a year, you will realise Short-Term Capital Gains (STCG). Regardless of your income tax status, these gains are taxed at a flat rate of 15%.

When you sell your stock fund units after holding them for more than a year, you realise Long-Term Capital Gains (LTCG). These capital gains are tax-free, up to Rs 1 lakh each year. Beyond this threshold, LTCG is subjected to tax at a rate of 10% without an indexation advantage.