The Board of Directors of PGIM India Asset Management Private Limited and PGIM India Trustees Private Limited vide resolutions dated November 20, 2020 and December 25, 2020 have approved the proposal for change in name and type of the Scheme and enabled investment in overseas securities by the Scheme, with effect from January 31, 2021.
PGIM India Diversified Equity Fund is an open ended equity scheme investing across large cap, mid cap, small cap stocks (“the Scheme”). The Scheme is positioned in the Multi Cap Fund category as per the SEBI circular dated October 6, 2017 on Categorisation and Rationalisation of Mutual Fund Schemes.
SEBI vide its circular no. SEBI/HO/IMD/DF3/CIR/P/2020/228 dated November 06, 2020 has introduced Flexi Cap Fund as a new category of open ended fund under Equity schemes. Flexi Cap Funds offer the flexibility to dynamically invest across large cap, mid cap and small cap stocks with 65% of the total assets of the scheme being invested in equity & equity-related instruments.
The current positioning of PGIM India Diversified Equity Fund satisfies the characteristics of a “Flexi Cap Fund” as specified by SEBI, and accordingly it is proposed to change the name and type of the Scheme. In addition to this, it is proposed to change the asset allocation of the Scheme by permitting investment in overseas securities, investment in debt instruments having structured obligations / credit enhancements and participation in corporate bond repo transactions by the Scheme. Details of existing and proposed changes are as follows:
The following changes will be carried out in the Scheme:
| Particulars | Existing Scheme Features | Proposed Scheme Features |
|---|---|---|
Scheme Name | PGIM India Diversified Equity Fund | PGIM India Flexi Cap Fund |
| Category of the Scheme | Multi Cap Fund- An open-ended equity scheme investing across large cap, mid cap, small cap stocks | Flexi Cap Fund- An open-ended dynamic equity scheme investing across large cap, mid cap, small cap stocks |
The option to exit without exit load can be exercised from January 01, 2021 to January 30, 2021 (both days inclusive) (“Exit Option Period”).
