The PGIM India Agelinked Investment Asset Allocation Facility uses 'Rule of 100 minus age' as a simple yet powerful rule- of-thumb for asset allocation i.e;

100 minus age = Equity allocation Simple, isn't it?

What is the PGIM India Agelinked Investment Asset Allocation Facility?

This facility allocates your investment between equity and debt in such a way that the initial allocation favors equity and becomes increasingly conservative as you approach retirement. In this way, initial years of your working life are focused more on accumulation whereas the later years are focused on conservation of capital while generating reasonable returns.

For instance, If you are 30 years old, then allocation will be

70% Equity
30% Debt

In addition, you can re-balance your portfolio every 1 year, 3 years, 5 years or 7 years to align equity allocation with age.


Why Re-balancing is important for your investments

Rebalancing your investment portfolio is one of the keys to successful investing over time. Rebalancing means adjusting your investment portfolio, to maintain your desired asset allocation. While there is no required schedule for rebalancing your investment, most recommendations are to examine allocations at least once a year to progressively shift out of riskier asset class as age increases.

With our Age-linked Investment Asset Allocation Facility, you can rebalance your portfolio between equity allocation and debt allocation, at least once every year based on your age, if you have opted for it. But if you don't want to do it so often, the portfolio will be rebalanced every 5 years by default. It's important to rebalance to maintain your asset allocation because it keeps your tolerance for risk at the comfortable level with respect to your age.

Why Asset Allocation strategies are important

  • Asset Allocation
  • Stock Selection
  • Others
  • Market Timing

Source: Internal Research and Analysis

  • Asset Allocation is the primary main determinant of long term portfolio performance rather than superior product selection or market timing
  • The performance of a portfolio can be explained the most by their asset allocation decision
  • Other decisions such as stock selection and market timing play a relatively smaller role

Highlights of PGIM India Agelinked Investment Asset Allocation Facility

  • 1 The rule of 100 minus Age, Rule-of-thumb for asset allocation, simplifies the complex asset allocation process
  • 2 More allocation towards equity during the early years of your working life to hasten corpus accumulation
  • 3 Focus shifts from corpus accumulation to corpus preservation as you age
  • 4 Combine 1 equity category fund and 1 debt category fund and asset allocation between the two basis your age
  • 5 Rebalancing of the portfolio every 1/3/5/7 years to align your equity allocation with age
  • 6 The facility can be customized to suit your preference of funds and rebalancing horizon

Features of PGIM India Agelinked Investment Asset Allocation Facility

  • The Facility offers both Lump-sum Investment and Systematic Investment Plan (SIP) mode to invest
  • Asset allocation is from the age of 30 years onwards. If investor has opted to the facility before 30 years, full investment will be in equity fund
  • You can choose to invest in any 1 equity category and 1 debt category. For instance, PGIM India Flexi Cap Fund for equity allocation and PGIM India Banking and PSU Debt Fund for debt allocation
  • Minimum investment amount under the Facility is 5,000/- for lump-sum investment and 2,000/- for SIP with minimum 12 instalments for Monthly frequency and minimum 6 instalments for Quarterly frequency
  • PGIM India Flexi Cap Fund will be the default scheme for equity allocation and PGIM India Banking and PSU Debt Fund will be the default scheme for debt allocation. Investments are under Growth option only.
  • You can at any time completely switch your allocation from one eligible scheme to another eligible scheme within the same category i.e. equity allocation or debt allocation
  • You have a choice to set the rebalancing period of 1 year, 3 years, 5 years or 7 years. Default period for rebalancing is 5 years

PGIM India Flexi Cap Fund

This product is suitable for investors who are seeking*:

  • Capital appreciation over long term.
  • To generate income and capital appreciation by predominantly investing in an actively managed diversified portfolio of equity and equity related instruments including derivatives.
  • Degree of risk - VERY HIGH

Very High - Investors understand that
their principal will be at very high risk

PGIM India Banking and PSU Debt Fund

This product is suitable for investors who are seeking*:

  • Income over the short term
  • Investment in debt instruments issued by Banks and Public Sector Undertakings, Public Financial institutions and Municipal Bonds
  • Degree of risk –Low to Moderate.

Low to Moderate - Investors understand that
their principal will be at low to moderate risk

*Investors should consult their financial advisers if in doubt about whether the product is suitable for them.


The information contained herein is provided by PGIM India Asset Management Private Limited (the AMC) on the basis of publicly available information, internally developed data and other third party sources believed to be reliable. However, the AMC cannot guarantee the accuracy of such information, assure its completeness, or warrant such information will not be changed. The information contained herein is current as of the date of issuance* (or such earlier date as referenced herein) and is subject to change without notice. The AMC has no obligation to update any or all of such information; nor does the AMC make any express or implied warranties or representations as to its completeness or accuracy. There can be no assurance that any forecast made herein will be actually realized. These materials do not take into account individual investor’s objectives, needs or circumstances or the suitability of any securities, financial instruments or investment strategies described herein for particular investor. Hence, each investor is advised to consult his or her own professional investment / tax advisor / consultant for advice in this regard. The information contained herein is provided on the basis of and subject to the explanations, caveats and warnings set out elsewhere herein. These materials are not intended for distribution to or use by any person in any jurisdiction where such distribution would be contrary to local law or regulation. Distribution of these materials to any person other than the person to whom it was originally delivered and to such person’s advisers is unauthorized, and any reproduction of these materials, in whole or in part without the prior consent of the AMC, is prohibited. The views of the Fund Manager should not be construed as an advice and investors must make their own investment decisions regarding investment/ disinvestment in securities market.