Should you invest in PGIM India Midcap Opportunities Fund now? Let's explore the details.
The PGIM India Midcap Opportunities Fund is a well-established fund with an expense ratio of around 45%. The total assets under management (AUM) stand at around ₹12,000 crores. This fund has been around for more than 10 years, offering consistency typically seen in older funds. The fund primarily invests:
The fund has diversified its investments into key sectors such as:
The fund has been managed by Mr. Puneet Pal since 2022, alongside Mr. Vinay Pahariya. Before this, Mr. Arodh Naha had managed the fund for a long period. Since the change in management in 2022, the fund has underperformed, especially when compared to its past performance.
The fund has posted the following returns:
When comparing this fund’s performance with its benchmark index, we see periods of underperformance, especially between 2014 to 2017. The fund performed considerably worse than its benchmark, returning only about 8% in the initial years compared to the benchmark's 15%.
However, post-COVID-19 (March 2020), the fund's performance improved significantly. From 2018 to 2021, the fund delivered returns of 38%, significantly outperforming its benchmark index, which only returned 24%.
With the fund’s recent underperformance, particularly since the change in fund managers, it’s crucial to evaluate whether the current opportunity is worth the risk. The fund still holds potential, especially after its post-COVID recovery. However, potential investors should weigh its recent performance history and the fund's changes before making any decisions.
An in-depth review of the PGIM India Midcap Opportunities Fund's performance, risk, and growth potential.
Although the average funds of the midcap category have given an annual return of about 18% in the last 10 years, the performance of the PGIM India Midcap fund has deteriorated in the last few years. In such a situation, some people believe that now NV is available cheap, so why not invest, while some people are thinking of redeeming the money due to negative performance. In this review, we will try to reach a firm decision by looking at both perspectives.
One of our subscribers has requested to review this fund. Similarly, if you also want a video on any topic, then comment. In this blog, we will look at the basic past performance of the fund, risk ratio, current rating, and future growth potential of the fund so that you can get a good clarity about the fund.
The fund was launched on 2nd December 2013. The benchmark of the fund is Nifty Mid Cap 150 TR I. The fund is managed by Vivek Sharma from April 2024, and the change in management has led to a slight improvement in performance over the past six months.
The fund's expense ratio is 0.46%, much lower than the category average of 0.73%, which is a positive point. The exit load is 10% if the money is redeemed before 90 days; otherwise, there is no exit load.
If you had continued a monthly SIP of Rs. 10,000 for the last 10 years, you would have invested Rs. 12 lakh, which would have grown to Rs. 24.68 lakh with an annual return of Rs. 3.68 lakh.
The fund's past returns are:
Comparing this with the midcap category and the benchmark Nifty Mid Cap 150 index:
The fund's ranking has not been very favorable:
The risk ratios for this fund are as follows:
The top sectors in the fund include:
The top holdings of the fund are:
The portfolio turnover ratio is 41%, which is higher than the category average of 25.6%. This suggests a higher frequency of trading.
The fund is rated 1 star by Kasil, while Value Research Online and Morningstar have given it a 3-star rating.
So, is this a good investment? The low NAV may seem attractive, but the fund's overall performance and the higher risk ratios indicate it's not the best pick for every investor.
