PGIM India MF to launch balanced advantage, retirement funds next year

KR Srivats New Delhi | Updated on November 23, 2019

PGIM India Mutual Fund, the country’s largest fund house, plans to launch a balanced advantage fund and a retirement fund in India in the first quarter or latest by the second quarter of calendar year 2020, a top official said.

This fund house is wholly owned by US-based PGIM, which is the asset management business of Prudential Financial Inc, a US-listed entity.

PGIM is among the top 10 asset management firms in the US with assets under management (AUM) of ₹91-lakh crore (over $1.2 trillion).

“We believe the hybrids and asset allocation products category would be the largest asset category in India in the next decade, almost in line with the diversified equity funds today,” Ajit Menon, CEO, PGIM India Mutual Fund, told BusinessLine.

PGIM India Mutual Fund also plans to launch a focussed fund in FY20-21, Menon added.

In the coming days, PGIM India Mutual Fund wants to position itself in the market as both a balanced equity fund house and also a fixed income fund house, he said.

Investment in DHFL

It may be recalled that US-based Prudential Financial had earlier this year bought out crisis-ridden DHFL’s 50 per cent shareholding in their joint venture DHFL Pramerica Mutual Fund.

After gaining sole control of DHFL Pramerica MF, the name of the fund house was changed to PGIM India Mutual Fund (PGIM India Asset Management Private Ltd).

Menon said that PGIM India MF had already offered large-cap, mid-cap, hybrid and tax-saving funds.

“We still don’t have a balanced advantage fund, retirement fund and focussed fund,” he said. Menon also said that the DHFL crisis, which broke out in September 2018, had a collateral impact on the fund house as its AUM fell sharply to ₹6,500 crore from ₹25,000 crore.

Commenting on the way forward for PGIM India, Menon said that the fund house will not chase AUMs, but look to build a trusted brand in India over the next two to three years. There is also no plan to list the asset management company in India, he added.

“Today, India is integrated with the whole world. We will interpret investments for investors keeping the global view as well. We have the backing of Prudential Financial. Our communication to retail investors in the coming days will be content-driven, intelligence-driven, and thought-leadership-driven as the new PGIM,” Menon said.

Published on November 23, 2019

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