PGIM India Equity Growth Opportunities Fund – Series II

AIF - Private Equity

Small-Cap

Others

Aggressive Growth

Investor Profile

1 - 7 YearsInvestment Horizon

HNITarget Segments

SEBI Category III AIF. The deck caps a single stock at 10%, and the fund may use derivatives only for hedging or arbitrage.Regulatory Fit

A closed-ended, long-only Category III AIF holding 30–40 small and microcap stocks, with a bottom-up E.D.G.E process.

What This Strategy Does

PGIM India Equity Growth Opportunities Fund – Series II is an equity small-cap fund which captures India's ₹10 trillion emerging companies opportunity through a concentrated portfolio of high-growth industrials, healthcare, and consumer stocks to achieve broad-based earnings growth.

Role in a Diversified Portfolio

A satellite holding for investors comfortable with 5–7 years of locked capital and small cap drawdowns. It is not for those who need steady returns.

CW Expert Research Notes

Earnings Resilience

The fund's concentrated exposure to small-cap industrials and materials companies with pricing power and operating leverage positions it to deliver resilient earnings growth across cycles.

Structural Tailwinds

The portfolio's overweight in domestic manufacturing proxies like capital goods, specialty chemicals, and building materials aligns it with India's multi-year capex supercycle and import substitution trends.

Valuation Opportunity

The fund's bottom-up focus on underfollowed small-caps with strong balance sheets and cash flows provides exposure to a relatively undervalued segment of the market.

Performance and Risk Analysis

Historical returns, volatility patterns, and how this fund has performed relative to its benchmark.

Detailed Risks

Market Risk

Potential recession driven by tightening monetary policy could dampen industrial demand, impacting portfolio's manufacturing exposure; mitigated by small-cap focus.

Liquidity Risk

Concentrated small/micro-cap holdings could face liquidity stress during volatility spikes, hindering rebalancing; mitigated by cash buffer.

Concentration Risk

Significant industrials exposure (33%) and single-stock bets like Apollo Micro (4.3%) amplify idiosyncratic risks; diversification across sectors limits downside.

Specific Strategy Risk

Regulatory changes impacting materials (13%) or healthcare (18%) sectors could pressure earnings; rigorous bottom-up research monitors company fundamentals.

Strategy Details

A closer look at the investment thesis, portfolio construction, and current holdings.

Core Investment Theme

Captures India's entrepreneurial dynamism through high-conviction exposure to rapidly growing small-cap companies. This concentrated portfolio provides early access to emerging leaders before institutional capital discovers them.

Broader Market View

Market Outlook

The equity markets appear to be in a post-correction phase, offering an attractive entry point as consumption and earnings normalize. Sectors like consumer, industrials and technology stand to benefit from the revival in domestic demand and capex cycle, though margin pressures and cyclicality remain key risks.

Why This Strategy is Attractive Now

This strategy seems well-positioned for the current environment with exposure across consumer cyclicals, defensives, financials and technology. The portfolio's ~70 holdings include market leaders, providing balance between growth and stability. Its moderate beta and diversification suggest a risk-adjusted stance aligned with the market cycle.

Investment Style & Process

Investment Style

The portfolio reflects a small-cap growth approach, emphasizing structurally growing sectors with a preference for market-leading companies.

Why it Makes Sense

This style appears well-suited for the current environment, capitalizing on India's economic expansion while maintaining valuation discipline through small-cap exposure.

High-Level Investment Process

Sourcing: Appears to emphasize bottom-up stock selection across sectors poised for structural growth, favoring companies with sustainable competitive advantages. Selection: Suggests a preference for quality franchises with visible earnings trajectories, reasonable valuations, and capable management teams. Construction: Portfolio construction is consistent with a diversified, conviction-weighted approach across high-conviction small-cap opportunities.

Portfolio Holdings Overview

SectoralAllocation

Manufacturing / Industrials33%

Communication Services6%

Materials13%

Consumer Discretionary11%

Pharma & Healthcare18%

Consumer Staples5%

Top Stock Holdings

CompanySectorAllocation

Data Patterns India LimitedManufacturing / Industrials6.60%

VRL Logistics LimitedManufacturing / Industrials5.90%

Tips Industries LimitedCommunication Services5.80%

Bharat Rasayan LimitedMaterial5.80%

Shyam Metalics And Energy LimitedMaterial5.60%

Dollar Industries LimitedConsumer Discretionary5.40%

Aarti Pharmalabs LimitedPharma & Healthcare5.30%

Globus Spirits LimitedConsumer staples4.80%

Ram Ratna Wires LimitedManufacturing / Industrials4.40%

Apollo Micro Systems LimitedManufacturing / Industrials4.30%

Fund House Management

The asset management company’s track record, AUM scale, and fund manager credentials.

Fund Manager Track Record

Aniruddha Naha

Lead Portfolio Manager

Alternatives at PGIM India Asset Management, has over 22 years of experience in equity and debt markets. He follows a Growth at Reasonable Price (GARP) investment philosophy, combining fundamental research, growth potential, and valuation discipline. For PGIM India Equity Growth Opportunities Fund – Series II, the investment strategy focuses on identifying fundamentally strong small- and micro-cap companies with attractive growth prospects, while assessing business quality, valuations, and associated risks.

Manager's Investment Philosophy

A high-conviction portfolio of 30–40 stocks, with no single stock above 10%. The universe is small and microcap companies ranked 251st and beyond by market cap. Selection is bottom-up, filtering first for company mortality risk (cash flow, leverage, promoter integrity, forensic accounting) and then applying the E.D.G.E framework.

Abhishek Tiwari

Co-Portfolio Manager

Abhishek Tiwari is the Chief Executive Officer of PGIM India Asset Management Private Limited. He has over 15 years of experience in financial services, with expertise in asset management, sales and distribution, business development, strategic partnerships and product management. Before becoming CEO in September 2025, he served as Chief Business Officer at PGIM India, where he contributed to business expansion across mutual funds, Portfolio Management Services (PMS) and Alternative Investment Funds (AIFs). Earlier, he worked at Edelweiss Asset Management, JP Morgan India Mutual Fund, DSP BlackRock Investment Managers and HDFC Mutual Fund in various sales, distribution and key-account management roles. He holds a Post Graduate Diploma in Management (PGDM) from the Institute of Management, Nirma University, Ahmedabad.

CW Expert Take

PGIM India combines global institutional practices with local market expertise. Their investment process emphasizes repeatable frameworks and risk-adjusted returns. The fund house maintains distinct teams across asset classes, each with specialized analytical capabilities and clear investment mandates.

Firm Overview

AMCPGIM India Asset Management Private Limited

Founded2008

Total AUM₹28,027 Cr

Investment Philosophy & Approach

Disciplined Approach

PGIM India Alternates follows a disciplined investment approach focused on rigorous research.

Risk Management

The firm emphasizes robust risk management practices to preserve capital.

Long-Term Perspective

PGIM India Alternates maintains a long-term investment horizon for capital appreciation.