PGIM India Large Cap Fund Payout Inc Dist cum Cap Wdrl INF663L01GU8

PGIM India Large Cap Fund earns a Below Average Process Pillar rating.

The process benefits from the size of its portfolio management team. With four portfolio managers at the helm, the fund is reasonably well-resourced. However, the rating is held back by the fund's weak long-term risk-adjusted performance. This can be seen in its five-year alpha calculated relative to the category index, which suggests that the process has struggled over that period. The number of months that the management team has been running this vehicle together also detracts from the process.

This strategy has more exposure to the Growth factor than the Large-Cap Morningstar Category average. But in terms of market capitalization, it is on par with peers. Examining additional factor exposure, this strategy has exhibited a tendency to hold fewer stocks with high dividend or buyback yields compared with Morningstar Category peers in recent years. Returning capital to shareholders often is not the highest priority of such businesses. The shares of such companies can deliver strong returns if they fulfill their growth projections, but they also carry more risk. In the latest month, the strategy was also less exposed to the Yield factor compared with Morningstar Category peers. This strategy also has tilted in favor of high-quality stocks, those that have demonstrated low financial leverage and solid return on equity, during these years. Such holdings could cause it to trail peers during economic booms, but help it better withstand busts. Compared with category peers, the strategy also had more exposure to the Quality factor in the most recent month. In addition, this strategy has exhibited a tilt toward liquid assets, evidenced by consistently holding companies with relatively higher trading volumes. This gives the managers more flexibility during bear markets to sell without adversely affecting prices. In this month, the strategy also had more exposure to the Liquidity factor over its peers. More information on a fund and its respective category's factor exposure can be found in the Factor Profile module within the Portfolio section.

The portfolio has allocations in its top two sectors, industrials and healthcare, that are similar to the category. The sectors with low exposure compared with category peers are basic materials and financial services, with basic materials underweighting the average portfolio by 2.7 percentage points of assets and financial services similar to the average. The portfolio is composed of 46 holdings and is relatively top-heavy. Of the strategy's assets, 54.5% are concentrated within the top 10 holdings, compared to the typical peer's 51.8%. And in closing, in terms of portfolio turnover, on a year-over-year basis, 58% of the fund's holdings have changed, whether through increasing, decreasing, or changing a position.