PGIM India Flexi Cap Fund
PGIM Flexi Cap Fund, previously known as PGIM India Diversified Equity Fund, is an open-ended dynamic equity scheme that invests across market capitalisation. The fund has a diversified portfolio, spreading across industries, sectors and market capitalisation. The portfolio is actively managed and consists of strong growth businesses having sustainable business models. The fund uses investment opportunities in the bull market to manage the volatility of a bear market.
Investment Objective
The scheme Invests in equity and equity related instruments across market capitalisation to generate income and long-term capital appreciation.
Investment Strategy
- The fund identifies quality stocks across market capitalization, sectors and industries which have strong growth potential and sustainable business models.
- The scheme has at least 45%-75% of its investments in large-cap companies and the rest in mid-cap and small-cap stocks.
- The fund is flexible in increasing or decreasing investments in large cap, mid-cap and small-cap stocks according to the market cycle and fund manager’s view of the market. The fund managers shortlist stocks based on a bottom-up stock-by-stock approach. Valuation Parameters like growth, margins, asset returns and cash flows are also considered while making the selection.
- Stocks are selected based on many other factors like,
- historical and current financial condition of the company,
- potential value creation and its impact on earnings growth,
- capital structure,
- business prospects,
- responsiveness to business conditions,
- policy environment,
- strength of management,
- product profile and brand equity,
- market share and competitive edge,
- research
- Technical know-how
Portfolio Composition
Top Sectors Allocated(% to Net Assets)
Software – 16.65% Cement & Cement Products – 7.33%
Finance – 10.90% Construction Project- 4.28%
Banks – 9.29% Consumer Durables – 3.96%
Industrial Products – 8.90% Construction – 3.77%
Top 10 Holdings(% to Net Assets)
Infosys Ltd. – 6.52% Gujarat Gas Ltd. – 3.25%
ICICI Bank Ltd. – 4.96% Axis Bank Ltd. – 3.06%
Larsen & Toubro Ltd. – 4.28% Esab India Ltd. – 2.95%
HDFC Ltd. – 3.70% Krishna Inst of Medical Sciences Ltd. – 2.89%
Bharti Airtel Ltd. – 3.53% Larsen & Toubro Infotech Ltd. – 2.71%
Risk Measures
Standard Deviation of Fund (Annual): 17.25%,
Beta: 0.95
Sharpe Ratio: 0.67
Fund Facts
| Inception Date | 04/03/2015 |
| Benchmark | NIFTY 500 TR Index |
| Application Amount | Rs. 5000 |
| Min SIP Amount | Rs. 1000 (minimum 5 installments) |
| Number of stocks | 48 |
| Asset Allocation | Large caps (1st-100th stock) 50.2%
Mid caps (101st-250th stock) 22.0% Small caps (251st stock onwards) 23.7% Cash 4.1% |
| Option | IDCW(Income Distribution cum Capital Withdrawal)Payout /Reinvestment
Growth. |
| NAV(Rs) | PGIM Flexi Cap Fund Regular Growth – 26.08, IDCW – 19.64
PGIM Flexi Cap Fund Direct Growth – 28.91, IDCW – 21.05 |
| AUM | Rs 2888.23 crore |
| Expense Ratio | Regular Plan: 2.18%, Direct Plan: 0.32% |
| Portfolio Turnover | 1.31 |
| Exit Load | 0.5% if more than 10% of the units allotted are redeemed within 90 days and Nil if redeemed after 90 days |
| Degree of Risk | Very High |
| Fund manager | Mr. Aniruddha Naha (Equity Portion)
Mr. Anandha Padmanabhan Anjeneyan (Equity Portion) Mr. Ravi Adukia (Overseas Investments) Mr. Puneet Pal ( Debt Portion w.e.f. 01 December, 2021) |
Fund Performance
| PGIM Flexi Cap Fund | |||
| Period | CAGR Returns (%) | ||
| Fund | Benchmark | ||
| PGIM Flexi Cap Fund Regular Growth Plan | |||
| Last 1 Year | 48.60 | 38.09 | |
| Last 3 Years | 27.34 | 18.46 | |
| Last 5 Years | 20.42 | 17.01 | |
| Since Inception | 15.26 | 12.23 | |
| PGIM Flexi Cap Fund Direct Growth Plan | |||
| Last 1 Year | 51.68 | 38.09 | |
| Last 3 Years | 29.83 | 18.46 | |
| Last 5 Years | 22.69 | 17.01 | |
| Since Inception | 17.04 | 12.23 | |
Comparison with Other Similar Funds
| Fund Name | Launch Date | 1 Year Return | 3-Year Return | 5-Year Return | Expense Ratio | Assets (Cr) |
| PGIM India Flexi Cap Fund – Direct Plan | March’15 | 51.68% | 29.83% | 22.69% | 0.32% | 2888.23 |
| UTI Flexi Cap Fund – Direct Plan | May 1992 | 43.42% | 25.34% | 20.53% | 1.00% | 24521.38 |
| Parag Parikh Flexi Cap Fund – Direct Plan | May’13 | 45.00% | 30.9% | 23.9% | 0.82% | 18298.80 |
| Aditya Birla Sun Life Flexi Cap Fund – Direct plan | August 1998 | 29.31 % | 17.66 % | 15.78 % | 0.99% | 15513.84 |
Conclusion
Flexicap is a new term introduced in India by SEBI in November 2020 as a new category in mutual fund schemes. It gives many benefits like diversification, risk mitigation, dynamic allocation and the ability to cope with varying market cycles. Unlike multi cap funds which restrict to min 25% allocation each in all the market cap categories, flexicap can invest freely across the market capitalisation, thus it can reduce the high exposure to small-cap stocks and reduce the risk of concentration.
