PGIM India Small Cap Fund

Diversified

Equity

India Micro Cap

Others

Small Cap

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 Small Cap Fund Growth invests in smaller Indian companies for higher growth potential with higher risk.

What This Strategy Does

PGIM India Small Cap Reg Gr is an equity small-cap fund which captures India's ₹10 trillion small-cap opportunity through a quantitative approach, deploying capital across industrials, healthcare, and consumer sectors to achieve broad-based earnings growth.

CW Expert Research Notes

Resilient Downside Protection

The fund has demonstrated resilience in downside protection, outperforming its category index and peers during challenging market conditions over the past year.

Differentiated Sector Positioning

The fund's sector positioning, with overweight allocations to healthcare, industrials, and consumer cyclicals, differentiates it from peers and reflects the manager's conviction in these areas.

Earnings Revisions Catalyst

Potential upward earnings revisions across the fund's holdings, particularly in the healthcare and consumer sectors, could act as a catalyst for outperformance.

Performance and Risk Analysis

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

Fund Performance

4.3% AnnuallyAlpha

+13.1% vs +8.5% benchmarkSince Inception

+15.1% vs +6.4% benchmark3Y Annualized

+12.6% vs +6.6% benchmark5Y Annualized

PGIM India Small Cap Fund

Benchmark Index

Benchmark Performance Comparison

Pgim India Small Cap Fund

NIFTY 50

Risk Profile

Standard Deviation19.2%

Maximum Drawdown-20.2% | Oct 2024

Sharpe Ratio0.16

Beta0.79

Upside Capture74%

Detailed Risks

Market Risk

Prolonged economic slowdown could dampen consumer demand, impacting small-cap earnings.

Liquidity Risk

Volatility spikes could strain liquidity for small-cap holdings, hindering rebalancing.

Concentration Risk

Outsized exposure to consumer discretionary raises vulnerability to spending cuts.

Specific Strategy Risk

Regulatory changes impacting key sectors could disrupt small-cap business models.

Strategy Details

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

Core Investment Theme

Provides exposure to India's entrepreneurial energy before institutional capital discovers it. Small caps offer the highest growth potential but demand patience through volatility cycles. The long-term impact is dramatic wealth creation—historical data shows sustained small-cap investing has generated life-changing returns, but requires conviction to stay invested through sharp drawdowns.

Broader Market View

Market Outlook

Equity markets appear to be entering a mid-cycle phase, with an attractive entry point emerging after the recent valuation correction. Macro tailwinds such as consumption recovery, earnings normalization, and capex revival, particularly in consumer, financial services, and technology sectors, suggest upside potential, although risks like margin pressures remain.

Why This Strategy is Attractive Now

This strategy seems well-positioned for the current environment with exposure to consumer cyclicals, financials, and technology leaders across its diversified ~70 holdings. The balanced portfolio, with moderate beta and risk-adjusted positioning, appears aligned with benefiting from economic normalization while providing flexibility to navigate cyclicality concerns.

Investment Style & Process

Investment Style

The portfolio exhibits characteristics of a Quality Growth strategy, emphasizing companies with durable competitive advantages, consistent earnings growth, and reasonable valuations relative to their growth prospects.

Why it Makes Sense

A Quality Growth approach appears well-suited in the current environment, where earnings visibility and pricing power are increasingly valued amid moderating economic growth and elevated input costs.

High-Level Investment Process

Sourcing: The strategy appears to focus on companies with sustainable competitive advantages, strong balance sheets, and the ability to compound cash flows over an extended period. Selection: The process suggests a preference for businesses with durable growth runways, pricing power, and reasonable valuations relative to their long-term growth prospects. Construction: The portfolio construction appears to emphasize diversification across sectors while maintaining a bias towards quality companies with consistent profitability and cash generation.

Portfolio Holdings Overview

SectoralAllocation

Energy & Infra0.73%

Financial Services16.21%

Utilities1.28%

Technology5.84%

Services18.95%

Capital Goods32.38%

Consumers24.6%

Geographic Allocation

Domestic100%

Top Stock Holdings

CompanySectorAllocation

Clearing Corporation Of India Ltd.Utilities3.85%

Multi Commodity Exchange of India LtdFinancial Services2.95%

Krishna Institute of Medical Sciences LtdServices2.93%

Navin Fluorine International LtdCapital Goods2.86%

J.B. Chemicals & Pharmaceuticals LtdServices2.73%

Sansera Engineering LtdConsumers2.44%

DOMS Industries LtdCapital Goods2.33%

Vishal Mega Mart LtdConsumers2.28%

MTAR Technologies LtdCapital Goods2.19%

Sai Life Sciences LtdServices2.10%

Fund House Management

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

Fund Manager Track Record

Vinay Paharia

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.

36 years

Combined Team Experience

₹ 19,206 Cr

Assets Under Management

Utsav Mehta

Co-Portfolio Manager

Utsav Mehta has experience of 3 years. Manages 46 funds at PGIM India Asset Management Private Limited with an AUM of approximately ₹1,598 Cr

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

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 follows a disciplined investment approach focused on rigorous research.

Risk Management

Risk management is embedded in PGIM's investment process and culture.

Long-Term Perspective

PGIM takes 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)2.61%

Exit Load0.5

Regulatory & Tax Information

INF663L01W30

ISIN

DailyDealing Frequency

Nifty Smallcap 250 TR INRBenchmark

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

STCG | <1Year 20%%

Tax Implications (India)