PGIM India Long Term Equity Fund Performance and Review

1. PGIM India Long Term Equity Fund Performance andReview PGIM India Mutual Fundoffers a wide range of investment solutions. It leverages the legacy, experience, and expertise of its parent company – PGIM, a renowned name in the global investment management business. It is present in more than 27 cities in the country and has created an extensive network of over 8000 distributors and 1500 institutional partners. As on 31st Dec 2019, the total fund size with PGIM India was Rs. 4035.71 crores. In this article, we will review the performance of one of its offerings – PGIM Long Term EquityFund. FundDetails PGIM Long Term Equity Fund is a tax-saving mutual fund. Investment in this fund (till Rs 1.5 lakhs per year) is eligible for a tax deduction as per Section 80C of the Income Tax Act and can lead to annual savings up to Rs. 46,800 (for individuals in the highest tax bracket). The PGIM Long Term ELSS Fund maintains a minimum equity exposure of 80% and hence falls under the “Moderately High” riskzone. Compared to other traditional tax-saving alternatives (such as NSC, PPF, ULIPs), this ELSS (Equity Linked Savings Scheme) has a shorter lock-in period of only three years. This period also ensures that investors do not panic in case of market swings and remain invested. Additionally, it has the potential for generating higher returns due to high equityexposure. The minimum application amount is Rs. 500. Subsequent installments should be in multiples of Rs. 500. There is no entry or exit load in the PGIM Long Term ELSS Fund. The Net AUM (Asset Under Management) as of 31st Dec 2019 was Rs. 356.56 crores. Benchmark for the PGIM Long Term Equity Fund is S&P BSE 200 TRIndex. InvestmentStrategy The PGIM Long Term Equity Fund follows a bottom-up stock selection strategy and invests across the market capitalization spectrum after taking into consideration factors such as PE ratio, growth, margins, cash flows, etc. Companies are analyzed on their financial stability (past and current), the potential for value creation, business prospects, management credibility and strength, product profile, technological expertise, market position and competitive edge, brand equity, and corporate governancemechanisms. Currently, the PGIM Long Term ELSS Fund has invested 97.6% of the corpus in equity instruments. In terms of market capitalization, the majority of the funds (64.4%) are directed towards large-cap stocks. The balance is split almost equitably between mid-cap and small-cap stocks. It has the flexibility to alter the exposure to different market cap stocks basis the market and economicsituations. PGIM Long Term Equity Fund is managed by Mr. Srinivas. He is a market veteran and has more than 2.5 decades of experience, primarily in fund management and equityresearch. AssetAllocation In terms of sectoral allocation, three industries that stand out are – Banks, Petroleum products, and Software. Amongst them, they constitute almost 52% of the portfolio with banks contributing27%. Performance

2. The PGIM Long Term ELSS Fund is a relatively new entrant in the mutual fund industry. Launched in December 2015, it is slowly and consistently improving its performance. Since its inception, it has generated returns of 10.13%. In absolute terms, Rs. 10,000 invested at the time of launch of the fund would have grown to Rs. 14,670. The PGIM Long Term Equity Fund has managed to remain relatively immune to excessive market fluctuations. This proves the inherent strength of the chosenstocks. FinalWords PGIM Long Term Equity Fund is suitable for investors who have a long term investment horizon (minimum five years) and are ready to take some risks along the way. Equity investments have the potential to generate inflation-beating returns in the long run and surpass the earnings from fixed incomeoptions.