Overview
This portfolio is diversified across sectors and companies to manage risks. It consists of 20-25 stocks, built consciously to have a low overlap with the benchmark to provide a differentiated offering.
Portfolio Proposition
Market Leaders and Challengers: We prioritize investing in companies that are leaders or challengers within their specific sectors that have competitive advantage and industry expertise.
Focus on High-Quality companies: We invest in companies that are structurally strong and demonstrate resilience and quality:
Achieved a Minimum Revenue Scale: Companies that have reached a minimum scale in terms of revenue, ensuring stability and growth potential.
Resilience Through Downcycles: Companies that have weathered at least one market downcycle and emerged stronger and have consistency in cash flows.
Strong Fundamentals: Companies with a consistent track record of generating strong cash flows and achieving high Return on Capital Employed (ROCE)
Concentrated Portfolio:
Concentrated Holdings: A focused portfolio of 20-25 carefully selected stocks with potential to grow while managing risk.
Multi-Cap Approach: Invests across market capitalizations to capture growth opportunities wherever they arise.
Low Overlap: Ensures portfolio differentiation and active management by maintaining low overlap with the benchmark.
Risk Management Principles: No more than 15% of the portfolio is invested in a single stock to mitigate concentration risk. Exposure to any single sector is restricted to 30% to ensure diversification across industries.
Dynamic Cash Management Strategy:
Residual Cash Holding: Cash is held as a residual component. The extent of cash holding is not pre-determined; it varies based on the availability of attractive investment opportunities. When opportunities are scarce, cash positions may increase to preserve capital.
Investment Process
Key Parameters
Our portfolio manager employs a disciplined approach to identify and manage investments, focusing on quality, growth potential and risk management.
Identifying potential growth opportunities:
The portfolio manager seeks companies with above-industry growth potential over next 3-5 years, strong internal cash generation without heavy reliance on external funding and management with a solid track record in ethical capital allocation and fairness to minority shareholders.
Reasonable valuations considering future growth potential:
The portfolio manager is mindful of current valuations, ensuring they are reasonable relative to future growth prospects, and conducts periodic portfolio reviews to maintain optimal investment choices.
Sell Discipline:
We implement a disciplined approach to selling stocks when the original investment thesis fundamentally changes, ensuring capital preservation. Additionally, if valuations appear to exceed reasonable PEG levels, we may consider exiting the position.
Investment Approach
Investment Objective
PGIM India Core Equity Portfolio seeks to generate returns by investing in a portfolio of quality companies that are available at reasonable valuations and have the potential of superior wealth creation over long term. However, there can be no assurance that the investment objective will be achieved.
Types of Securities
Funds would be predominantly invested in listed equity and equity related instruments.
Basis of selection
The portfolio will identify and invest in companies with strong fundamentals which are available at a reasonable price when seen in light of business projections, projected cash flows and market value of assets. Such opportunities are available when companies are going through a period of temporary difficulty or are ignored by the market. It is a Multi-cap portfolio agnostic to market capitalisation. Primary screening is based on ability to generate free cash flows, high ROCE with filters for vintage and size.
Portfolio Allocation
It is a multi-cap portfolio. From a risk management perspective, portfolio will be adequately diversified across sectors and companies. Pending deployment of funds of the portfolio in securities in terms of the investment objective, the funds of the portfolio may be parked in short term deposits of scheduled commercial banks or in the liquid and debt schemes of PGIM India Mutual Fund.
Investment horizon
Markets usually take time to spot value, and hence, this portfolio requires a longer holding period. Hence, this portfolio is suitable for investors with investment horizon of at least three years.
Risk Associated
Please refer to disclosure document.
Portfolio Manager
Surjitt Singh Arora,
Principal Officer and Portfolio Manager - Portfolio Management Services,
PGIM India Asset Management Pvt. Ltd.
PGIM India Asset Management Pvt. Ltd.
Surjitt Singh Arora is Portfolio Manager – Portfolio Management Services at PGIM India Asset Management Private Limited.
Surjitt Singh Arora has more than 18 years of rich work experience in the Equity Markets including over 8 years in the asset management industry. In his last stint, Surjitt was Head - PMS and Head - Principal Officer with Tata Asset Management, where he was managing Tata ACT and Tata Emerging Opportunities Portfolio. Prior to that he was with Tata Mutual Fund as Equity Research Analyst.
Surjitt holds a Bachelor’s degree in Management Studies from Sydenham College, Mumbai and a Master’s degree in Management Studies from Sydenham Institute of Management and Research (SIMSREE), Mumbai.
Performance
Period
Portfolio
Nifty 50 TRI
Nifty 500 Multicap 50:25:25 TRI
1 Month
-9.61%
-5.79%
-8.91%
3 Months
-14.46%
-8.10%
-14.19%
6 Months
-16.88%
-11.98%
-17.59%
1 Year
-1.88%
1.89%
-1.03%
2 Years
12.06%
14.41%
20.89%
3 Years
12.02%
10.93%
14.71%
Since inception date 08/07/2013
14.25%
13.43%
16.82%
Performance as on February 28, 2025
*Portfolio Turnover ratio for the period August 1, 2022 to February 28, 2025
Data as on February 28, 2025 for actual portfolio. Source: Internal Research
Past performance may or may not sustain in future ; w.e.f. April 1, 2023, the benchmark has changed to Nifty 50 TRI from Nifty 500
To view the portfolio’s performance relative to other Portfolio Managers, you may click here
Portfolio
Security Name
Portfolio Weightage
BAJAJ FINANCE LTD
6.56%
BHARAT RASAYAN LTD
6.30%
SAGILITY INDIA LTD
5.43%
AUROBINDO PHARMA LTD
5.41%
VARUN BEVERAGES LTD
5.27%
HDFC LIFE INSURANCE COMPANY LTD
5.24%
SUMITOMO CHEMICAL INDIA LTD
4.64%
SYNGENE INTERNATIONAL LTD
4.55%
HAVELLS INDIA LTD
4.49%
ITC HOTELS LTD
4.38%
As of 28th February 2025.
Portfolio Documents
Presentations
Our Offerings
PGIM India
Phoenix Portfolio
PGIM India Phoenix Portfolio seeks out small and mid-cap companies that are close to an inflection point in their lifecycle either due to a cyclical or structural changes.
PGIM India
Equity Portfolio
We measure quality as a mark of longevity. That’s how we select companies at reasonable valuations and with the potential of creating long-term wealth in a multi-cap portfolio.
PGIM India
EQUITY PORTFOLIO – SERIES I
PGIM India Equity Portfolio – Series I (High Conviction Themes) seeks to generate returns by investing in a portfolio of quality companies that are beneficiaries of efficient operating.
PGIM India
EQUITY PORTFOLIO – SERIES ii
PGIM India Equity Portfolio – Series II seeks to generate returns by investing in a portfolio of predominantly quality stocks with good fundamentals.
PGIM India
Equity NDPMS Portfolio
Under the Non Discretionary Services, the Portfolio Manager will manage the Client’s portfolio in accordance with the directions received from the Client and pursuant to Client’s consent being received for each investment/transaction.
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