PGIM India Retirement Fund: Should you invest in it?

NFO period

The fund launched on March 26, 2024, and will remain open for subscription until April 09, 2024.

Investment objective

To provide capital appreciation and income to investors in line with their retirement goals.

How will the fund invest?

It will predominantly invest in equity, maintaining an allocation between 75 and 100%, while its debt allocation will be up to 25%.

Benchmark

PGIM India Retirement Fund will be benchmarked against the S&P BSE 500 TRI.

Who are the fund managers?

The fund will be jointly managed by Vinay Paharia (equity portion) and Puneet Pal (debt, REITs and InvITs).

What does the fund’s investment strategy look like?

In terms of equity, the fund will allocate at least 25% of the money to large, mid and small caps each, similar to the strategy followed by multi-cap funds.

Our view

Solution-oriented funds are no different from any other mutual fund. Adding the words ‘retirement’ or ‘children’ is often just a marketing gimmick.

Contd…

Since retirement funds don’t offer any unique advantages over regular equity schemes, investors will be better off investing in multi-cap funds with an existing track record.

Thanks for Reading!

See More