Pgim India Midcap Opportunities Fund Growth Direct Plan

PGIM India Midcap Opportunities Fund – Growth- Direct Plan is an open-ended mutual fund scheme. The fund invests at least 65% of its AUM in equity and equity-related securities of mid-cap companies. As per SEBI guidelines, midcap companies are ranked from 101 to 250 on the list of companies based on market capitalisation. The funds are best suited for investors looking for long-term investments of their funds.

PGIM India Midcap Opportunities Fund – Growth- Direct Plan investments are managed by a dedicated team of experts with years of experience in the Indian financial market. Companies with high RoE, consistently positive cash flows and low leverage are given preference by the fund managers. Businesses with effective capital allocation and market dominance are prioritised by portfolio managers to ensure high returns while minimising risk.

The primary goal of the fund is to offer long-term capital appreciation. It offers higher growth potential than large-cap stocks and lesser volatility than small-cap stocks. Being a growth fund, the dividend outflows are minimal. Instead, the profits and gains are reinvested in the portfolio to offer stronger long-term gains.

Highlights of The Fund

Check out the key parameters of PGIM India Midcap Opportunities Fund- Growth-  Direct Plan before you decide to make an investment.

• Fund House: PGIM India Mutual Fund
• Fund Type: Open-ended
• Benchmark Index: NIFTY Midcap 150 Total Returns Index
• Time Horizon: 3+ years
• Risk Profile: Very High
• Fund Manager: Vivek Paharia, Vivek Sharma and Anand Padmanabhan Anjeneyan
• Current NAV: ₹ 54.05 as of August 24, 2023
• Fund Size: ₹ 9261.06 crores as of July 31, 2023
• Minimum Application Amount: ₹5000; multiple of ₹1 after that
• Minimum Additional Amount: ₹1,000; multiple of ₹1 after that
• Minimum SIP Investment Amount: ₹1000
• Minimum Withdrawal: ₹1000
• Expense Ratio: 41%
• Exit Load: NIL on redemptions/switch outs of up to 10% units within 90 days after allotment. A 0.5% exit load on redemption/ switch outs of units more than that. Further, no exit load on switch outs between open-ended equity schemes, hybrid schemes and fund of funds schemes as well as after the 90-day period.

Taxation

Tax Implications on PGIM India Midcap Opportunities Fund- Growth- Direct Plan is specified below.

• 15% Short Term Capital Gains (STCG) tax is applicable on redemptions made within 1 year.
• 10% Long Term Capital Gains (LTCG) tax is applicable on profits of more than ₹1 lakh upon redemption after a year.
• No tax is levied on gains up to ₹ 1 lakh upon redemption after a year.
• Dividend income is added to the investor’s regular income and is subject to regular tax slabs.
• Dividend income over ₹5,000 in a fiscal year is subject to TDS deductions from the fund house.

Major Holdings

Check out the PGIM India Midcap Opportunities Fund- Growth- Direct Plan’s portfolio details below to get a holistic picture of the scheme.

Portfolio Composition 

• Number of stocks- 65
• Share of mid-cap stocks- 6%
• Share of large-cap stocks- 3%
• Share of small-cap stocks- 2%
• Cash, current assets and Gsec- 9%
• Top 10 holdings- 1%
• Weighted average market capital- ₹61,544 crore

Top 10 holdings (as on 31st July 2023)

Return History

As of 31st July 2023, the PGIM India Midcap Opportunities Fund – Growth- Direct Plan has offered returns at the following rate.

Investment Objective: PGIM India Midcap Opportunities Fund- Growth-  Direct Plan

Unlike an IDCW plan, which aims to provide regular incomes in the form of dividends to its investors, a growth fund involves as few dividend payouts as possible. The gains are, instead, reinvested in the fund to generate higher returns in the long run.

The primary objectives of the fund are:

• Offering long-term capital appreciation on the investment.
• To provide a suitable investment option for long-term investors.

• Invest in the equity-based securities of mid-cap companies.

Minimum Investment and Lock-in Period

The fund accepts a minimum investment of ₹5,000. While the minimum additional investment, SIP investment and withdrawal amount are set at a minimum of ₹1,000.

The lock-in period is the time frame within which the mutual fund house prohibits an investor from redeeming the fund. Although the lock-in period of the scheme is not explicitly stated by PGIM on its website, open-ended funds are usually locked in for a period of three years. An investor can consult the fund house for specific details before investing.

AMC Information

U.S.-based Prudent Financial Inc (PFI) owns PGIM India Mutual Funds. PGIM is a globally renowned name. The company offers a wide range of asset classes, ranging from equities to fixed income to real estate. The investment management firm aims to offer investment solutions to retail and institutional investors. Over 17 active investment professionals manage 22 open-ended funds offered by the fund house. 

• Official Name: PGIM India Asset Management Private Limited
• Key Products: Equity Schemes, Hybrid Schemes, Fixed Income Schemes, Fund of Funds
• Toll-Free Contact: 1800 266 7446
• Email: care@pgimindia.co.in
• Official website: pgimindiamf.com
• Corporate Office: 4th Floor, C Wing, Laxmi Towers, Bandra Kurla Complex,

Bandra (East), Mumbai – 400 051