Overview

Thanks to advancement in medical technology and increased awareness around living healthy, people across the globe are living longer and healthier. In fact, life expectancy in India has improved by 8.68 years from 62.1 years in 2000 to 70.8 years in 2019. (Source: World Health Organisation)

According to United Nations, it is projected that by 2050, the number of individuals aged 65 years or above across the world will be twice the number of children under age 5 and almost equivalent to the number of children under 12 years. (Source: World Population Prospects 2022).

As people live longer, the need to financially support yourself during retirement becomes more pronounced. Moreover, rising prices impact everyone. Inflation in India has averaged at 5.5%, above the Asia Pacific average of 2.1%.1 Inflation erodes the purchasing power of money over time. Without accounting for inflation, retirement savings may not be sufficient to maintain the desired standard of living.

Since we do not have a conventional and comprehensive social security plan in India, saving for retirement becomes crucial. Introducing PGIM India Retirement Fund, an open-ended solution oriented scheme having a lock-in of 5 years or till retirement age (whichever is earlier), which helps you save for this important life goal.

What is Retirement Fund?

PGIM India Retirement Fund is an open-ended solution oriented scheme having a lock-in of 5 years or till retirement age (whichever is earlier). Individuals looking to save for their long term goal like retirement can invest in this fund.

Why you should invest in PGIM India Retirement Fund?

  • Inflation erodes the purchasing power of money. Hence, it is essential to invest in equities which can help beat inflation over long run.
  • Globally and in India, life expectancy is on the rise, which means your retirement corpus needs to sustain longer. Thus, saving for this goal from an early age is essential for a stress-free retirement.
  • You can fulfil most of your goals with a loan but when it comes to retirement, there is no conventional loan. You need to save for it diligently.
  • Delaying investing for long term goals means you need to invest more to achieve the same corpus or increase your investment time horizon. Thus, starting early is essential to achieve your goal in the desired time frame.

Why should one invest in equities to save a nest egg for retirement?

Inflation erodes the purchasing power of money. History suggests that equities have the potential to beat inflation over long run and also compound your wealth. Thus, leveraging the superior performance of equities compared to other asset classes is important. Equities should be an essential component of your retirement plan.

I'm concerned about losing money in a market downturn…

Equities are volatile during short term but have the potential to generate above inflation returns over long run. The retirement fund has a 5-year lock-in period. Studies show that the occurrence of negative returns diminish over long run. This lock-in fosters long-term perspective, discourages impulsive decisions, and instils confidence, nudging investors towards disciplined and goal-oriented investing behaviour.

Who should invest in PGIM India Retirement Fund?

PGIM India Retirement Fund Features

Mr. Vinay Paharia

CIO – PGIM India AMC

Vinay Paharia is Chief Investment Officer at PGIM India Asset Management Pvt. Ltd.

Overseeing equities and fixed income fund management. He joined PGIM India AMC in January 2023. Vinay has completed his B. Com, M.M.S (Finance) from Welingkar Institute of Management and Chartered Financial Analyst course from The Institute of Chartered Financial Analysts of India.

Mr. Puneet Pal

Head – Fixed Income, PGIM India AMC

Puneet Pal is the Head-Fixed Income of PGIM India Asset Management Pvt. Ltd.

He has over 21+ years of experience in the debt markets within the mutual fund space. He is an MBA (Finance) from Symbiosis Institute of Business Management, Pune.

Instruments Indicative Allocations
(% of total assets)		 Risk Profile
High/Medium/Low
Equity & Equity Related Instruments** 75% - 100% Very High
Debt Securities and Money Market Instruments, including cash, Triparty Repo and equivalent and units of mutual funds 0% - 25% Low to Medium
Units issued by REITs and InVITs 0-10% Medium to High

For more details on asset allocation, please refer Scheme Information Document of the Scheme

S&P BSE 500 TRI

Not Applicable

Nil

PGIM India Retirement Fund is categorized as an open-ended retirement solution oriented fund. The Scheme shall have a compulsory lock-in period of 5 years or till retirement age of 60 years, whichever is earlier.

The lock in period is also applicable when investor moves out of the PGIM India Retirement Fund to any other scheme within the fund house, before the mandatory lock in period of 5 years or retirement age, whichever is earlier.

Transfer-out of the scheme shall be allowed subject to 5 years lock in period from the date of allotment of units or attainment of retirement age of 60 years, whichever is earlier), subject to exit load, if any.

Regular Plan and Direct Plan
Growth, Payout of Income Distribution cum Capital Withdrawal facility (IDCW-Payout)
Reinvestment of Income Distribution cum Capital Withdrawal facility (IDCW- Reinvestment)

Initial Purchase/Switch-In: Minimum of Rs. 5,000/- and in multiples of Re.1/- thereafter.

Minimum of Rs 1,000/- and in multiples of Re. 1/- thereafter.

Minimum no. of 5 instalments and Minimum amount per instalment - Rs. 1,000/- each and in multiples of Rs.1/- thereafter.

SID

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KIM

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Product Presentation

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Product Literature

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This product is suitable for investors who are seeking*:

  • Long term capital appreciation

  • Investment predominantly in equity and equity related instruments

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



Scheme Riskometer

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



Benchmark Riskometer

Benchmark riskometer is at very high risk

S&P BSE 500 Index (TRI)^^

© 2024 Prudential Financial, Inc. (PFI) and its related entities. PGIM, the PGIM logo, and the Rock symbol are service marks of PFI and its related entities, registered in many jurisdictions worldwide.

1 www.focus-economics.com/country-indicator/india/inflation

Mutual Fund Investments are subject to market risks, read all scheme related documents carefully.