PGIM India Midcap Opportunities Fund – Regular Plan
Date Published: November 2, 2022
FUND FACTS
|
Nature |
Open ended |
Fund Manager |
Aniruddha Naha, Puneet Pal, Vivek Sharma |
|
Date of Allotment |
02-Dec-2013 |
Benchmark Index |
Nifty Midcap 150 TRI |
|
NAV (Rs.) |
44.28 ( 13.10.2022 ) |
Corpus (Rs.in Crs.) |
6614.47 ( Aug-2022 ) |
|
Investment Objective |
The primary objective of the Scheme is to achieve long-term capital appreciation by predominantly investing in equity & equity related instruments of mid cap companies. |
||
PORTFOLIO COMPOSITION
The fund has 94.04% of its net assets invested into equity & equity related instruments and balance 5.96% in cash and others. The large cap holdings constitute of 8.54% (market cap > Rs.47,228 crs), 67.34% in midcap (market cap > Rs.16,367 and < Rs.47,228 crs), 18.16% in small cap(market cap 0 > Rs.16,367 crs), and balance 5.96 % in debt and cash component. The top 10 holdings of the scheme constitute 35.42% of its net assets. It may be observed that the Quarterly Average AUM of the fund for the end of June 2022 is Rs.3205.54 crs.
| Sectoral Allocation (in %) as on 31.08.2022 | ||
| Top 10 Holdings of Fund | Fund Allocation | |
| Capital Goods | 20.22 | |
| Diversified | 15.58 | |
| Banking | 14.29 | |
| Consumer Durables | 10.05 | |
| Housing | 7.35 | |
| Auto | 6.43 | |
| Chemicals | 6.36 | |
| FMCG | 6.17 | |
| IT | 5.03 | |
| Oil & Gas | 1.29 | |
| Month | Equity % | Cash % | Scheme % Monthly Returns(Month end) | Index % Monthly Returns(Month end) |
| Aug-22 | 94.04 | 5.96 | 4.57 | 5.94 |
| Jul-22 | 94.38 | 5.62 | 11.22 | 11.22 |
| Jun-22 | 91.93 | 8.07 | -3.56 | -5.2 |
| May-22 | 91.96 | 8.04 | -3.19 | -5.05 |
| Apr-22 | 97.83 | 2.17 | -1.27 | 1.91 |
| Mar-22 | 98.65 | 1.35 | 3.73 | 4.84 |
| Feb-22 | 95.15 | 4.85 | -5.62 | -5.3 |
| Jan-22 | 96.42 | 3.59 | -1.66 | -1.12 |
| Dec-21 | 94.95 | 5.05 | 5.28 | 2.85 |
| Nov-21 | 97.66 | 2.34 | -1.78 | -1.27 |
| Table: 3 | |||
| Top 10 Holdings (% in N.A) | Aug-22 | Feb-22 | Sept-21 |
| ABB India Ltd. | 4.35 | 3.61 | 1.06 |
| TVS Motor Company Ltd. | 4.10 | 2.83 | — |
| Timken India Ltd. | 3.85 | 3.14 | 1.66 |
| The Indian Hotels Company Ltd. | 3.73 | 1.36 | 2.79 |
| Varun Beverages Ltd. | 3.60 | 3.07 | 1.86 |
| HDFC Bank Ltd. | 3.31 | 2.37 | — |
| Laurus Labs Ltd. | 3.25 | 1.69 | — |
| Crompton Greaves Consumer Electrcials Ltd. | 3.23 | — | 1.88 |
| Dalmia Bharat Ltd. | 3.05 | 3.80 | 2.55 |
| Jubilant Foodworks Ltd. | 2.93 | — | 2.31 |
PORTFOLIO ANALYSIS
As of August 31, 2022, PGIM India Midcap Opportunities Fund held a fairly diversified portfolio of 48 stocks. The top-10 stocks accounted for around 35.42% of its assets, with names like ABB, HDFC Bank, TVS Motor Company, Timken India, The Indian Hotels, Ashok Leyland, Crompton Greaves Consumer Electrcials, Varun Beverages, Dalmia Bharat, Laurus Labs, etc. appearing in its top 10 holdings. In the last one year, PGIM India Midcap Opportunities Fund has gained the most from its holding in ABB, Crompton Greaves Consumer Electrcials, ICICI Bank, Kolte Patil Developers, among others. In terms of sector holdings, the fund’s portfolio is majorly exposed to Capital Goods (20.22%) followed by Banking stocks with a combined allocation of about 14.29%, followed closely by Consumer Durables, Housing, with an allocation of around 10.05% to 7.35%.
Table 1 above tabulates the allocation of top 10 sectors by the fund. The fund has an allocation to 11 sectors, wherein the top 5 sectors constitutes to 67.49%. The fund could outperform its benchmark index in 06 out of 12 months during the last one year period, maintaining an average equity exposure of 95.66%.
The risk parameter graph measures standard deviation (S.D.) across all the Midcap schemes. The S.D. of the scheme is 24.31%, which is lower than the industry average of the Mid Cap schemes of 23.82%. The Sharpe ratio of the scheme is 1.42%, which is higher than the industry average of 0.97%.
Monthly SIP and Lumpsum vis-à-vis Benchmark: Exhibit 2
| Monthly SIPs Min (Rs.1000 p.m.) | |||||
| SIP Period | Amt Invst. (Rs.) | PGIM Ind Midcap Opp Reg (Rs.) | Nifty Midcap 150 TRI (Rs.) | ||
| Market Value | Rets (%) | Market Value | Rets (%) | ||
| 1-Yr. | 12,000 | 12,933 | 14.67% | 13,001 | 14.67% |
| 3-Yrs. | 36,000 | 62,877 | 39.74% | 56,356 | 31.34% |
| 5-Yrs. | 60,000 | 120,824 | 28.40% | 102,085 | 21.38% |
| 7-Yrs. | 84,000 | 188,082 | 22.62% | 164,700 | 18.88% |
| 8-Yrs. | 96,000 | 224,729 | 20.63% | 201,781 | 18.08% |
| Lumpsum (Matching Monthly SIP) | |||||
| SIP Period | Amt Invst. (Rs.) | PGIM Ind Midcap Opp Reg (Rs.) | Nifty Midcap 150 TRI (Rs.) | ||
| Market Value | Rets (%) | Market Value | Rets (%) | ||
| 1-Yr. | 12,000 | 13,276 | 10.67% | 13,418 | 11.85% |
| 3-Yrs. | 36,000 | 72,445 | 39.13% | 61,856 | 29.63% |
| 5-Yrs. | 60,000 | 128,382 | 26.53% | 106,853 | 19.90% |
| 7-Yrs. | 84,000 | 195,271 | 21.24% | 172,155 | 18.03% |
| 10-Yrs. | 96,000 | 237,299 | 19.96% | 214,583 | 17.74% |
Note: (1) Performance is on August 31, 2022. (2) Returns are calculated on the basis of annual compounding. As it may be observed in Exhibit 2, the fund has outperformed in returns vis-à-vis its benchmark across all time frames. The returns of the fund in both modes (ie. Monthly and Lumpsum) across various time periods witnessed with mixed noticeable variations.
PERFORMANCE
In Exhibit 4, the scheme has outperformed the benchmark index in 3 months, 1 years and 3 years time horizons. PGIM India Midcap Opportunities Fund is one of the well-managed funds in the Mid-cap Fund category that has turned out to be an outperformer through its focus on identifying quality mid-cap stocks. The fund focuses on investing in high-quality growth stocks of mid-sized companies Moreover, the fund participated in the bounce-back rally and has turned out to be one of the top performers, not only in the Mid-cap Fund category but across diversified equity funds. The recent outperformance has helped the fund improve its long-term performance as well, and it has managed to generate a significant lead over the category average and the benchmark across time periods. Over longer time periods of 3-year and 5-year, the fund has a clear lead over its benchmark and the category average.
This Fund is suitable for investors with a high-risk appetite looking for an actively managed Mid-cap Fund with an investment horizon of at least 3-5 years.
Please Note: The ratings mentioned in the report are declared by Value Research and Crisil has ranked 1 for this fund (For the quarter ended June 2022).
PEER COMPARISON
