Overview
PGIM India Equity Portfolio seeks to achieve long term capital appreciation by investing in equity and equity related instruments across market capitalisation.
Investment Approach
Investment Objective
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 leverage, helping them to grow profitability, over the longer term.
Types of Securities
Funds would be predominantly invested in listed equity and equity related instruments.
Basis of selection
The portfolio will aim to invest in companies that benefit from timely capital expenditure, manifesting in increased profitability and better return ratios over a period of time. The portfolio will endeavor to focus on companies with strong operating leverage and avoid companies with higher financial leverage. Primary screening is based on ability to generate operating cash flows, healthy balance sheets with relatively lower net debt to equity ratio and demonstrated corporate governance track record.
Allocation of portfolio across types of securities:
From a risk management perspective, portfolio will be adequately diversified across sectors and across 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.
Indicative tenure or investment horizon:
Benefits of capex outlay and/or cost controls may positively impact operating leverage, however it may take time to reflect in earnings numbers of the company. Hence, this portfolio requires a longer holding period. Hence, this portfolio is suitable for investors with investment horizon of at least 3 years.
Risk associated with the investment approach:
Please refer to disclosure document.
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