PGIM India Flexi Cap Fund

Diversified

Equity

India Super Value

Others

Aggressive growth Investor Profile

Investor Profile

1–7 yearsInvestment Horizon

HNI, UHNI, Retail Investor, Mass AffluentTarget Segments

SEBI registered equity mutual fund suitable for all investor categoriesRegulatory Fit

Pgim India Flexi Cap Fund Growth invests across all company sizes in India for flexible growth.

What This Strategy Does

PGIM India Flexi Cap Fund Regular Growth is an equity flexi-cap fund which captures India's ₹200 trillion consumption and private capex opportunity through a multi-cap portfolio construction approach, deploying capital across consumer cyclicals, financials, industrials, and healthcare to achieve broad-based earnings growth.

CW Expert Research Notes

Benchmark-Trailing Consistency

While delivering benchmark-trailing returns over the long term, the fund has demonstrated resilience by outperforming in 4 out of the past 12 years, highlighting a degree of consistency across market cycles.

Sector Conviction Bets

The fund's sector positioning reflects conviction bets, with overweight exposures to financials, industrials, and consumer cyclicals, while being underweight energy and communication services relative to the benchmark.

Valuation Opportunity Potential

With the fund's valuation currently assessed as cheap versus history and peers, the strategy could benefit from a potential re-rating if the macro thesis around earnings revisions and structural growth trends plays out as expected.

Performance and Risk Analysis

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

Fund Performance

-1.9% AnnuallyAlpha

+12.2% vs +9.9% benchmarkSince Inception

+9.0% vs +6.3% benchmark3Y Annualized

+7.0% vs +6.5% benchmark5Y Annualized

PGIM India Flexi Cap Fund

Benchmark Index

Benchmark Performance Comparison

Pgim India Flexi Cap Fund

NIFTY 50

Risk Profile

Standard Deviation13.6%

Maximum Drawdown-16.3% | Oct 2024

Sharpe Ratio-0.64

Beta0.89

Upside Capture83%

Detailed Risks

Market Risk

Potential recession driven by high inflation could dampen consumer demand, impacting cyclical sectors; fund's mid-cap tilt mitigates downside.

Liquidity Risk

Elevated volatility could strain liquidity for mid-cap holdings, hindering rebalancing; large-cap allocation provides buffer.

Concentration Risk

Concentrated exposure to Indian IT sector faces margin pressures from rising wages; diversification across sectors limits impact.

Specific Strategy Risk

Regulatory changes to India's data localization policies could disrupt cloud providers; active monitoring integrated into research process.

Strategy Details

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

Core Investment Theme

Delivers flexibility that matters during market transitions. By investing across capitalizations without constraints, this approach allows fund managers to rotate capital toward the best risk-reward opportunities—whether that's defensiveness in large caps during uncertainty or growth capture in smaller companies during expansions. The impact is adaptability that can smooth portfolio returns across varying market conditions. Suitable for investors seeking dynamic exposure across the market-cap spectrum.

Broader Market View

Market Outlook

Equity markets appear to be entering a mid-cycle phase, with consumption and earnings recovery gaining traction. This normalization backdrop, supported by trends like reviving capex and credit growth, offers an attractive entry point. The strategy's tilt towards consumer, financial services, and technology aligns with beneficiaries of the demand upswing, although competitive pressures and cyclicality pose risks.

Why This Strategy is Attractive Now

The strategy seems well-positioned to capitalize on the current environment through balanced exposure across consumer cyclicals, defensives, financials, and technology. The portfolio's ~70 holdings include market leaders poised to gain from demand revival. Moderate risk metrics and flexibility could enable risk-adjusted participation in the normalization upside while providing resilience against volatility.

Investment Style & Process

Investment Style

The portfolio exhibits characteristics of a Quality Growth approach, emphasizing companies with durable competitive advantages, consistent earnings growth, and reasonable valuations across a mix of large and mid-cap market segments.

Why it Makes Sense

In the current environment of moderating economic growth and elevated uncertainty, a Quality Growth strategy can provide exposure to companies with resilient business models, pricing power, and the ability to compound shareholder value through cycles.

High-Level Investment Process

Sourcing: The strategy appears to source investment ideas through a bottom-up research process focused on identifying quality franchises with sustainable competitive advantages, strong management teams, and attractive growth runways. Selection: The selection process suggests a preference for companies that can generate consistent earnings growth, maintain high returns on capital, and trade at reasonable valuations relative to their long-term earnings potential. Construction: Portfolio construction is consistent with a focus on diversification across sectors and market capitalizations while limiting exposure to higher-risk, more cyclical areas of the market.

Portfolio Holdings Overview

SectoralAllocation

Capital Goods19.77%

Technology7.98%

Financial Services28.14%

Utilities2.08%

Energy & Infra5.23%

Consumers20.81%

Services15.99%

Geographic Allocation

Domestic100%

Top Stock Holdings

CompanySectorAllocation

HDFC Bank LtdFinancial Services6.83%

ICICI Bank LtdFinancial Services6.54%

Reliance Industries LtdEnergy & Infra4.35%

Bharti Airtel LtdServices3.50%

State Bank of IndiaFinancial Services2.56%

TVS Motor Co LtdConsumers2.44%

Eternal LtdConsumers2.21%

Tata Consultancy Services LtdTechnology2.20%

Titan Co LtdConsumers2.03%

Persistent Systems LtdTechnology2.01%

Fund House Management

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

Fund Manager Track Record

Puneet Pal

Mr. Puneet Pal has experience of 25 years. Manages 237 funds at PGIM India Asset Management Private Limited with an AUM of approximately ₹7,998 Cr Holds a M.B.A. degree.

76 years

Combined Team Experience

₹ 32,006 Cr

Assets Under Management

Vinay Paharia

Co-Portfolio Manager

Mr. Vinay Paharia has experience of 17 years. Manages 89 funds at PGIM India Asset Management Private Limited with an AUM of approximately ₹7,998 Cr Holds a MMS degree.

Vivek Sharma

Co-Portfolio Manager

Mr. Vivek Sharma has experience of 16 years. Manages 101 funds at PGIM India Asset Management Private Limited with an AUM of approximately ₹9,610 Cr

A. Anandha Padmanabhan

Co-Portfolio Manager

Mr. A. Anandha Padmanabhan has experience of 17 years. Manages 6 funds at PGIM India Asset Management Private Limited with an AUM of approximately ₹6,400 Cr Holds a B.Com degree.

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

Total AUM₹27,538.26 Cr

Investment Philosophy & Approach

Disciplined Approach

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

Risk Management

Risk management is embedded in PGIM India's investment decision-making process.

Long-Term Perspective

PGIM India maintains a long-term perspective in capital allocation decisions.

Operational & Regulatory Details

What it costs to invest, transaction mechanics, and regulatory disclosures you should know.

Costs and Fees

Total Expense Ratio (TER)1.82%

Exit Load0.5

Regulatory & Tax Information

INF663L01FJ3

ISIN

DailyDealing Frequency

BSE 500 India TR INRBenchmark

LTCG | >1Year 12.5%% on gain above 1.25 Lakh

STCG | <1Year 20%%

Tax Implications (India)