Introduction :
Equity Savings Funds adopt a three pronged strategy of investing in a mix of equity, fixed income and arbitrage. This helps you participate in the equity upside and at the same time offers you stability through arbitrage and fixed income exposure.
What is PGIM India Equity Savings Fund?
The fund invests in a combination of equity, equity arbitrage and debt to provide an optimal mix of diversification.
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Here’s the asset allocation pattern:
| Instruments |
Indicative allocatios(% of total Assets) |
Risk Profile |
| Minimum |
Maximum |
| A. Equity and Equity related instruments |
65% |
90% |
High |
| A1. Of which Not Long Equity* |
5% |
40% |
High |
| A2. Of which Equity and Equity derivates** (Only Arbitage opportunities) |
25% |
85% |
High |
| B. Debt Secureties and Money Markets Instruments (including investments in securitiezd debt) |
10% |
35% |
Low to Medium |
| C. Of Units issued by InVITs And REITs |
0% |
10% |
Medium to High |
Why you should invest in PGIM India Equity Savings Fund?
- If you are looking for a relatively low to moderate risk solution and the same time participate in equity, PGIM India Equity Savings Fund may be ideal for this goal.
- Disciplined asset allocation ensures that regular profit booking happens in the asset class which has outperformed.
- Asset allocation within a range helps define the risk-return characteristics, which can ensure discipline and resistance to emotions while investing.
Who can invest in PGIM India Equity Savings Fund?
- Investors who have a low to moderate risk profile and are looking for a limited exposure to equity can consider PGIM India Equity Savings Fund.
- Investors looking for a tax-efficient solution at a relatively lower risk.
What should be ideal time horizon while investing In PGIM India Equity Savings Fund?
Investors should have an investment horizon of at least two years or above while investing in PGIM India Equity Savings Fund.
Is PGIM India Equity Savings Fund risky?
Since the fund invests predominantly in predominantly in debt and arbitrage, it carries relatively Low to Moderate Risk. The net equity exposure is capped at 40%.
FAQs
How to invest in PGIM India Equity Savings Fund?
There are multiple ways to invest in PGIM India Equity Savings Fund.
- Invest Easy Online
- MF Utilities
- MF Central
- AMFI/SEBI registered mutual fund distributor or Registered investment Advisor.
Can I invest through SIP and lumpsum mode in PGIM India Equity Savings Fund?
Yes.
- Initial Purchase : Minimum of Rs 5,000
- Additional Purchase : Minimum of Rs 1,000
In case of SIP, a minimum of 5 installments of Rs. 1,000 each is required.
Should you invest lumpsum or through SIP in PGIM India Equity Savings Fund?
The decision to invest through SIP or lumpsum depends on your cash flows. If you have regular cash flow, it is advisable to invest through SIP. Investing through lumpsum option is also ideal as the fund has the in-built flexibility to maintain the right mix between equity and debt so that your equity exposure is not too high when valuations are stretched.
What frequency/dates are allowed for Systematic Investment Plan (SIP), Systematic Transfer Plan (STP) and Systematic Withdrawal Plan (SWP) transactions in PGIM India Equity Savings Fund?
SWP Transaction Dates
- Monthly, Quarterly & Annual : Any date
- Minimum no. of installments and Minimum amount per installment: Monthly, Quarterly & Annual : 5 (five) installments of Rs 1,000 each Monthly, Quarterly & Annual: 5 installments of Rs 1,000 each
- Mode of Payment: Monthly, Quarterly & Annual (as chosen by unitholder)