#PGIMIndiaMF #MultiAssetAllocationFund #MAAF #NFO #MutualFundsIndia #DynamicAssetAllocation #Diversification #Equity #Debt #Gold #Silver #REITs #InvITs #InvestmentStrategy #PersonalFinance #RiskAdjustedReturns
Chandigarh – PGIM India Asset Management has announced the launch of a new open-ended scheme, the PGIM India Multi Asset Allocation Fund (MAAF). This fund is designed to provide investors with a single-window solution for diversification by dynamically investing across a wide spectrum of asset classes, aiming to deliver long-term capital appreciation while managing downside risk.
The New Fund Offer (NFO) is currently open for subscription, having commenced on November 11 and will close on November 25, 2025. The scheme will be available for ongoing transactions starting December 3, 2025.
Strategy: Dynamic Diversification Across Six Assets
The PGIM India Multi Asset Allocation Fund is a hybrid scheme that adheres to SEBI’s mandate for investing in at least three asset classes. However, this fund goes further, offering exposure to six distinct asset categories, with allocation adjusted dynamically based on market trends, valuations, and the broader risk outlook:
- Equity
- Debt (Fixed Income)
- Gold ETFs
- Silver ETFs
- Real Estate Investment Trusts (REITs)
- Infrastructure Investment Trusts (InvITs)
The core rationale behind this multi-asset approach is the low correlation between different asset classes. For instance, equities may thrive during economic expansion, while defensive assets like debt and precious metals (gold/silver) often provide a cushion during market downturns or periods of high inflation. The dynamic allocation model seeks to maximize returns during market upswings and protect capital during corrections, thereby aiming to provide a smoother return experience over a full market cycle.
Blended Benchmark and Fund Management
To accurately reflect its multi-asset structure, the fund is benchmarked against a blended composite index with the following weights:
- 60% Nifty 500 TRI (Equity)
- 20% Crisil Short Term Bond Index (Debt)
- 10% Domestic Gold Prices
- 10% Domestic Silver Prices
This blend captures the performance of large-cap equities, short-term fixed income, and commodities, providing a holistic measure against which the fund’s dynamic strategy will be evaluated.
The fund will be jointly managed by an experienced team: Mr. Vivek Sharma, Mr. Anandha Padmanabhan Anjeneya, and Mr. Utsav Mehta will oversee the equity portion, while Mr. Puneet Pal will manage the debt component.
Key Investment Terms
The fund offers straightforward terms designed to encourage medium-to-long-term investing:
- Minimum Investment: ₹5,000 for initial subscription, with subsequent investments in multiples of ₹1,000.
- Exit Load: A low 0.5% exit load applies if units are redeemed within 90 days from the date of allotment. There is no exit load thereafter.
- Options Available: Investors can choose between the Growth option and the IDCW (Income Distribution cum Capital Withdrawal) option.
Why Multi-Asset Allocation?
Multi-asset allocation funds have gained significant traction as investors seek sophisticated yet convenient ways to navigate increasingly volatile markets. For the investor, the benefits are clear:
- Convenience and Simplicity: Investors gain exposure to a professionally diversified and rebalanced portfolio using a single fund, eliminating the need to track and manage multiple asset funds (e.g., separate equity, debt, and gold funds).
- Risk Mitigation: By reducing concentration risk, the fund lessens the impact of a sharp decline in any single asset class, contributing to better risk-adjusted returns.
- Active Rebalancing: The dynamic strategy ensures the portfolio is periodically adjusted to maintain the target risk/reward profile, which is a process investors often struggle to execute consistently or without incurring tax costs from internal switches.
The PGIM India MAAF is suitable for investors with a moderate risk profile and a medium-to-long-term investment horizon who are looking for balanced exposure and stable, compounded growth across different economic environments.
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#PGIMIndiaMF #MultiAssetAllocationFund #MAAF #NFO #MutualFundsIndia #DynamicAssetAllocation #Diversification #Equity #Debt #Gold #Silver #REITs #InvITs #InvestmentStrategy #PersonalFinance #RiskAdjustedReturns
Source: PGIM PR
