The total assets of the scheme will be invested primarily in equity and equity related instruments. The portfolio will be diversified across sectors. The portfolio is expected to have minimum 25% allocation towards large cap, midcap and small cap segments of the market respectively under normal circumstances. Companies with long term growth potential and sustainable business models are preferred. The portfolio is built utilizing a combination of the top-down and bottom-up portfolio construction process, focusing on the fundamentals of each stock, including quality of management and prevailing valuations.
The scheme shall primarily use a bottom-up approach to identify companies with sound management and good growth prospects and a top-down approach for macro and thematic analysis. The fund manager(s) would select companies with stable or high growth with due consideration to valuation. The fund manager(s) would consider a range of quantitative and qualitative factors such as company’s business prospects, historical and present financial condition, capital allocation efficiency, operating cash flows, leverage position, valuation metrics, competitive edge, brand equity, strength of management and good corporate governance practices among others.
The scheme may also invest in turn-around companies based on fund manager’s view. All investments would be subject to regulatory limits for stock and sector weightages.
Compulsory lock in period
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.
Introduction
Increasing longevity, rising healthcare costs and inflation necessitate saving for retirement at an early stage. Moreover, unlike any other goal which can be fulfilled with a loan, retirement is the only goal for which you don’t get a conventional loan. Thus, you need to plan it diligently by investing consistently in equities which can beat inflation. Presenting PGIM India Retirement Fund, which is suited for those who are looking to build a retirement corpus.
What is the asset allocation of PGIM India Retirement Fund?
- Equity & equity related instruments: 75% - 100% (minimum to maximum).
- Debt Securities and Money Market Instruments, including cash, Triparty Repo and equivalent. and units of mutual funds: 0%-25% (minimum to maximum).
- Units issued by REITs and InVITs: 0%-10% (minimum to maximum).
Why you should invest in PGIM India Retirement Fund?
- Ideal for building a corpus for retirement.
- Helps you diversify across sectors, themes and companies across the market cap spectrum.
- May help you beat inflation over long run.
What should be the ideal time horizon of investing in PGIM India Retirement Fund?
FAQs
HOW TO INVEST IN PGIM INDIA RETIREMENT FUND?
You can invest through multiple options:
- Website: You can invest through https://investors.pgimindiamf.com/auth/login by creating your profile and submitting identity details, and bank account information, and becoming KYC compliant.
- RIA/MFD: You can also invest through a Registered Investment Adviser or Mutual Fund distributor registered with SEBI/AMFI.
- Industry Portal: You can also invest through MF Utility or MF Central portals.
- Do consult your financial advisor before investing to understand if the fund fits into your risk profile.
CAN I INVEST THROUGH SIP AND LUMPSUM MODE IN PGIM INDIA RETIREMENT FUND?
- You can invest lumpsum as well as through SIP mode.
- The minimum application amount under this fund is Rs 5,000 for a lumpsum transaction. You can invest a minimum of Rs 1,000 as additional investment.
- You need to commit at least 5 instalments (monthly or quarterly) with a minimum of Rs 1,000 per instalment if you invest through SIP.
WHAT FREQUENCY/DATES ARE ALLOWED FOR SYSTEMATIC INVESTMENT PLAN (SIP), SYSTEMATIC TRANSFER PLAN (STP) AND SYSTEMATIC WITHDRAWAL PLAN (SWP) TRANSACTIONS IN PGIM INDIA RETIREMENT FUND?
- SIP: Any date of the month or quarter, as applicable.
- STP: Available only after completion of lock in period of 5 years from the date of allotment or after the unitholder attains 60 years of age whichever is earlier. After Lock in period: Daily, Weekly, Monthly and Quarterly. 5 instalments of Rs 1,000/- and in multiples of Rs 1/-.
- SWP: Available only after completion of lock in period of 5 years from the date of allotment or after the unitholder attains 60 years of age whichever is earlier. After Lock in period: Monthly, Quarterly and Annually.
HOW IS PGIM INDIA RETIREMENT FUND TAXED?
Investments redeemed on or after 23rd July 2024.
- Holding Period (To qualify for LTCG): 12 months
- Short Term Capital Gains Tax: 20%
- Long Term Capital Gains Tax: 12.5% (with an exemption up to INR 1.25 lakhs)
Plus surcharge and cess as may be applicable on the above rates.