PGIM India Mutual Fund has launched a new retirement solution-oriented scheme – PGIM India Retirement Fund. The scheme aims to aid retirement planning goals of interest investors. This is also the only New Fund Offer (NFO) available for subscription in the first month of current Financial Year, April 2024, according to information on the website of Association of Mutual Funds in India (AMFI).
The New Fund Offer of PGIM India Retirement Fund opened on March 26 and will close on April 9.
This scheme aims to achieve investors’ retirement objectives by investing in a diverse range of securities such as equity, equity-related instruments, REITs, and InvITs, as well as fixed-income securities, to provide both income and capital appreciation.
Also Read: Is it good or bad to invest in a New Fund Offer (NFO) of mutual fund?
“The investment objective of the scheme is to provide capital appreciation and income to investors in line with their retirement goals by investing in a mix of securities comprising of equity, equity related instruments, REITs and InvITs, and fixed income securities. However, there is no assurance that the investment objective of the scheme will be achieved. The Scheme does not guarantee/ indicate any returns,” says the scheme’s investment objective mentioned on AMFI’s website.
5 Things To Know About This Retirement Fund
1. Compulsory lock-in period: It’s an open-ended retirement solution-oriented fund that has a lock-in period of 5 years or till retirement age of 60 years, whichever comes earlier.
2. Asset Allocation: The asset allocation of PGIM India Retirement Fund includes allocating between 75% to 100% of its portfolio in equity and equity-related instruments. Additionally, it allocates between 0% to 25% of its portfolio in debt securities and money market instruments, including cash, Triparty Repo, and equivalent, as well as units of mutual funds. Furthermore, it may allocate between 0% to 10% of its portfolio in units issued by REITs and InVITs.
3. Risk: Investors with a high-risk tolerance may be attracted to the PGIM India Retirement Fund due to its investment of at least 75% in equities. Also, there is a compulsory lock-in period you will not be able to withdraw in case of an emergency.
4. Investment required: The application amount needed for investment in lumpsum is a minimum of Rs. 5000 and in multiples of Re 1 thereafter. For SIP you need to commit at least five instalments of the minimum amount of Rs. 1000. This scheme comes with 0 exit load.
5. Benchmark Index: It has been benchmarked against the S&P BSE 500 Total Return Index. The fund manager will find companies which has high growth potential and good management.
You can directly invest in this scheme directly through PGIM India Mutual Fund’s website or through a Registered Investment Adviser or Mutual Fund Distributor registered with SEBI/AMFI.
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Disclaimer: The above content is for informational purposes only. Please consult your financial advisor before investing in any scheme.
