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 continuity of talent across its parent firm. The firm's asset-weighted manager tenure of 15 years demonstrates its ability to retain portfolio managers. However, the rating is limited 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 parent firm's subpar risk-adjusted performance, as shown by its average 10-year Morningstar Rating of 2.8 stars, also weakens the process. A lower star rating suggests that the firm has struggled to outperform on a risk-adjusted basis.

This strategy leans toward smaller, more growth-oriented companies compared with its average peer in the Large-Cap Morningstar Category. Looking at additional factor exposure, this strategy has constantly downplayed yield, with its portfolio holding fewer companies with high dividend or buyback yields compared with Morningstar Category peers in recent years. Its preference for stocks with lower yields may well lead to a growthier portfolio. However, growth stocks court additional risks if their forecasts do not come to fruition and are often more volatile than companies with stable dividends. In the latest month, the strategy was also less exposed to the Yield factor compared with Morningstar Category peers. This strategy also has had a position favoring high-quality stocks in recent years, which could contribute to higher downside risk protection. Though it may trail peers during an economic boom, this orientation contributes to helping it weather periods of economic stress better. Compared with category peers, the strategy also had more exposure to the Quality factor in the most recent month. In addition, this strategy has taken on exposure to high-momentum stocks in these years. Momentum is based on the premise that market outperformers will continue to outperform, and laggards will continue to lag. This means that managers are overweighting stocks currently on a winning streak. In this month, the strategy also had more exposure to the Momentum 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 financial services and basic materials, with financial services underweighting the average portfolio by 3.0 percentage points of assets and basic materials similar to the average. The portfolio is composed of 44 holdings and is quite concentrated. More concretely, 53.7% of the strategy's assets are housed within the top 10 holdings, as opposed to the category average of 51.2%.