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Midcap Equity Mutual Fund - PGIM India Midcap Opportunities Fund

PGIM India Midcap Equity Mutual Fund is an open ended equity scheme to achieve long term capital appreciation by investing in mid cap stocks. To buy mid cap equity funds online, visit our website today.<br><br>https://www.pgimindiamf.com/mutual-funds/equity-fund/pgim-india-midcap-opportunities-fund

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Midcap Equity Mutual Fund - PGIM India Midcap Opportunities Fund

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  1. Gain from experience PGIM INDIA MIDCAP OPPORTUNITIES FUND (An open ended equity scheme predominantly investing in mid cap stocks) April 2021

  2. GAIN FROM EXPERIENCE As always, experience gives you an edge. Powered by its in-depth learnings, PGIM India Mutual Fund helps you manage money better. PGIM, built on a 140-year legacy. To know more, contact your financial advisor.

  3. About Us (PFI) 124 LAC CRORES (INDIA) ASSETS UNDER MANAGEMENT AS ON 31/12/2020 109 LAC CRORES 9433 CRORES* ASSETS UNDER MANAGEMENT AS ON 31/12/2020 The Global Investment Management Business of PFI ASSETS UNDER MANAGEMENT AS ON 31/03/2021 Source: www.pgim.com and www.prudential.com. *For AUM Breakup please refer slide no. 28 This information has been prepared by PGIM, Inc (”PGIM”). PGIM is the premirary asset management business of PFI and is a registered investment advisor with the US Securities and Exhange Commission. PFI, a company with corporate headquaters in the US, is not affiliated in any manner with Prudential plc, a company incorporated in the United Kingdom. 3 PGIM India Midcap Opportunities Fund

  4. About Us Global Footprint Luxembourg Position of Strength Chicago Amsterdam Dublin London Minneapolis Ranking Based on Worldwide Assets Frankfurt Munich Milan Boston New York Newark Madison Paris Memphis Tokyo Assets ($ Billions) $6,466 $5,269 $2,900 $2,689 San Francisco Top 10 Asset Managers2 Seoul Atlanta Los Angeles Dallas Orlando Miami Shanghai 1 BlackRock 2 Vanguard Group 3 Fidelity Investments 4 State Street Global Advisors 5 JP Morgan Asset Management $2,239 6 The Goldman Sachs Group 7 BNY Mellon Investment Management 8 The Capital Group 9 Amundi 10 PFI* Mumbai Taipei Mexico City Hong Kong Singapore $1,818 1300+ investment professionals 10TH 1 73% 38 OFFICES Sydney $1,796 $1,700 $1,684 $1,481 largest global asset manager of asset in 4/5 star 1Based on Morningstar ratings of PGIM assets in all share classes as of December 31, 2018. 2Pensions & Investments Top Money Managers list, June 1, 2020; ranking reflects largest money managers by assets under management as of March 31,2020; based on PFI total worldwide assets under management as of March 31, 2020. Source: www.pgim.com *Worldwide AUM include assets managed by PFI's Asset Management business and non-proprietary AUM. 4 PGIM India Midcap Opportunities Fund

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  6. PGIM India Asset Management PGIM India Mutual Fund is a wholly owned business of PGIM, the global investment management business of the US based PFI. Differentiated ASSET ALLOCATION SOLUTIONS No of open-ended Investment products EQUITY FUNDS - 10 FIXED INCOME - 11 10000+ DISTRIBUTORS Network 27 CITIES PORTFOLIO MANAGEMENT SERVICES: STRATEGIES - 2 Total no. of years of experience of investment team 182 YEARS Investment Team size 17 PGIM India Core Equity Portfolio PGIM India Phoenix Portfolio 6 PGIM India Midcap Opportunities Fund

  7. Themes available for Mid and Small Cap SOFTWARE PRODUCT DEVELOPMENT COMPANIES • India is seeing emergence of some interesting IT product companies. • Different from the normal IT Services companies WATER & WATER TRANSPORTATION Water will increasingly become a critical element in the eco-system of India. Higher population & erratic monsoons will require water transportation & river linking DISCRETIONARY RETAIL This segment is a beneficiary of rising per capital GDP and higher discretionary spends. Many sub segments find no representation in large caps: • Footwear • Clothing brands • Food & Retail chain HOSPITALITY Increasing incomes will lead to people travelling more and holidaying. The need for hotel rooms & airlines will grow manifold HOTEL These are based in the Fund Managers outlook and are subject to change. The Sscheme may or may not invest in above themes. These themes may change depending upon the market conditions. 7 PGIM India Midcap Opportunities Fund

  8. Themes available for Mid and Small Cap REAL ESTATE Housing will be a long-term story in India. Post RERA, the transparency has gone up and overtime the competition will come down. CHEMICALS The sector is seeing a lot of vibrancy in terms of growth and profitability as China clamps down on pollution. Lots of business is flowing to India STAFFING Manpower management is moving from unorganised to organised and the trend to outsource non-core activity will be a big theme, as corporates will focus on core activities and profitability HOME BUILDING As a corollary to the real estate sector, as the sector takes off, there will be a good demand of tiles, sanitary ware, etc. There is very little representation of large caps in the segment. These are based in the Fund Managers outlook and are subject to change. The Sscheme may or may not invest in above themes. These themes may change depending upon the market conditions. 8 PGIM India Midcap Opportunities Fund

  9. Falling interest rates augur well for Mid and Small Caps Large Cap Vs Mid Cap Debt to Equity Ratio 300 250 200 150 100 50 0 Apr-16 Oct-16 Apr-17 Oct-17 Apr-18 Oct-18 Apr-19 Oct-19 Apr-20 Oct-20 Apr-21 NIFTY Index Nifty 50 D/E Ratio NSEMCAP Index Nifty Midcap 100 D/E Ratio Historically, Mid Caps and Small Caps have been more leveraged than Large Caps. Recent changes with interest rates reducing Mid Caps are likely to benefit more than Large Caps. Data as on April 30, 2021. Source: Bloomberg. The Large Cap category stocks are represented by Nifty 50 Index and the Midcap stocks are represented by Nifty Midcap 100 Index. 9 PGIM India Midcap Opportunities Fund

  10. Mid and Small Caps post a sharp recovery post drawdown Bearish Events Period High to Low Correction 2 Years Return thereafter 3 Years Return thereafter 5 Years Return thereafter Sub-prime Crisis Dec 2007 to Mar 2009 -62.96% 135.96% 126.31% 152.75% European Crisis Oct 2010 to Dec 2011 -34.71% 32.06% 105.89% 134.81% Greece Default Dec 2012 to Aug 2013 -22.52% 98.17% 133.25% 202.29% Demonetization effect Oct 2016 to Dec 2016 -9.81% 24.56% 19.17% 7.52% SEBI reclassification, Credit Crisis Dec 2017 to Feb 2019 -20.88% -7.71% – – The Returns of 2 years, 3 years and 5 years are absolute returns and are calculated from the end of the correction for all the above mentioned events. The extent of drawdowns is a factor in determining risk but the time taken to recover a drawdown is an equally important factor. Historically, the midcaps have demonstrated a decent drawdown recovery. Data as on April 30, 2021. Source: Bloomberg. The above table is only for illustration purpose and should not be construed or related to the performance of the strategy. 10 PGIM India Midcap Opportunities Fund

  11. Investment Approach : PGIM India MCOF The zebra in the centre is the is the safest, but gets low quality grass which is stamped by the hoof of other horses The zebra in the outer periphery has the risk of being attacked by lions but has access to the greener grass. The zebra, which is aware of the risk and stands at the outer periphery gets the best grass and is risk aware In the Midcap, we are the risk aware zebra, standing at the periphery Source : Zebra in the Lion Country by Ralph Wagner 11 PGIM India Midcap Opportunities Fund

  12. Approach leads to concentrated portfolio with low overlap Low Portfolio Overlap of 31.1% with top ideas beyond benchmark Low Portfolio Overlap of 31.1% Top ideas beyond the Benchmark PGIM India Midcap Opportunities Fund 31.1% Indiamart Intermesh Ltd Sharda Motor Industries Greenply Industries Ltd Dixon Technologies Graphite Benchmark* Data as on April 30, 2021 *Nifty Midcap 100 TR Index. These are based on the Fund Manager’s outlook and are subject to change. Stocks referred to in the document are only for understanding purpose and should not be considered investment advise. 12 PGIM India Midcap Opportunities Fund

  13. Approach leads to concentrated portfolio with low overlap NO. OF STOCKS Benchmark* 100 PGIM India Midcap Opportunities Fund 48 0 20 40 60 80 100 120 “Hundreds of billions of dollars are invested in virtual or complete Ignorance of underlying business fundamentals, often using indexing Strategies designed to avoid significant underperformance at the cost of assured mediocrity” – Seth Klarman Data as on April 30, 2021. *Nifty Midcap 100 TR Index. These are based on the Fund Manager’s outlook and are subject to change. Stocks referred to in the document are only for understanding purpose and should not be considered investment advise. 13 PGIM India Midcap Opportunities Fund

  14. Portfolio Metrics 1.42% 0.0% 2.4% 3.1% 3.4% 15.5% 19.7% 92.1% 68.9% 16.9% 3.4% 6.1% PGIM India Midcap Opportunities Fund Benchmark* Large Cap Mid Cap Small Cap Cash Not Classified Data as on April 30, 2021 *Nifty Midcap 100 TR Index. These are based on the Fund Manager’s outlook and are subject to change. Source: Bloomberg. 14 PGIM India Midcap Opportunities Fund

  15. The approach is bound by the framework

  16. Investment Process Overview – Stage II Assessing the ability to survive the cycles. Three factors for inclusion in investment universe. Operating Cash Flow positive for 7 out of 10 years Demonstrated Corporate Governance Debt to Equity ratio < 3 Land Capital Companies strong on either are in focus for evaluation Abundantly Competitive Advantage available in India Labor Technology 16 PGIM India Midcap Opportunities Fund

  17. Common traits across holdings Respect for Capital Strong focus on Return on Capital Employed (RoCE) & Return on Equity (RoE) Operating Leadership A leader or competent challenger in its operating space • Favour industries gearing up for consolidation • Avoid industries slated for fragmentation Sector Dominance • Conservative debt • Positive operating cash flows • Strong projected cash flow generation Solid Financials 17 PGIM India Midcap Opportunities Fund

  18. Portfolio composition Top 40-45% Middle 40-45% Bottom 10-20% Companies with stable earnings and strong earnings visibility (14-16%) Companies with strong earnings growth (above 20%) Turn around stories/ good companies going through bad times with significant potential for alpha generation This is the general strategic portfolio composition of the fund. It does not exactly indicate the composition of the fund at the current moment 18 PGIM India Midcap Opportunities Fund

  19. The story behind our current success – portfolio positioning Companies beyond top 50-60 COMPANIES 20%-25% EXPOSURE to small caps – much more than peers OVERWEIGHT ON SECTORS which are currently under bought 30%-35% overlap with benchmark and peers Data as on April 30, 2021 19 PGIM India Midcap Opportunities Fund

  20. Sources of Alpha – Overweights / Underweights Exposure to Materials (%) Exposure to Industrials (%) 31.07 23.90 22.56 22.41 22.41 28.44 21.96 21.52 21.35 21.13 21.02 35 20.17 20.16 20.13 19.88 25.12 19.09 24.19 18.84 18.60 25 17.41 17.40 21.97 30 19.69 19.30 19.24 18.96 18.31 17.92 20 16.41 25 15.94 15.87 14.94 14.72 14.31 13.64 20 15 15 10 10 5 5 0 0 Nov-19 Dec-19 Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20 Jul-20 Aug-20 Sep-20 Oct-20 Nov-20 Dec-20 Jan-21 Feb-21 Mar-21 Apr-21 Nov-19 Dec-19 Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20 Jul-20 Aug-20 Sep-20 Oct-20 Nov-20 Dec-20 Jan-21 Feb-21 Mar-21 Apr-21 Materials Average Index Weight Industrials Average Index Weight Source: Bloomberg. The Index considered in the graphs above is Nifty Midcap 100 TRI Index 20 PGIM India Midcap Opportunities Fund

  21. Sources of Alpha – Overweights / Underweights Exposure to Financials (%) Real Estate Exposure (%) 26.22 3.0 25.80 30 22.26 21.69 2.5 20.45 20.45 18.90 25 17.93 17.51 17.43 2.0 15.40 14.59 14.27 13.96 13.79 13.71 20 12.11 11.81 1.5 15 1.0 10 0.5 5 0.0 0 Nov-19 Dec-19 Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20 Jul-20 Aug-20 Sep-20 Oct-20 Nov-20 Dec-20 Jan-21 Feb-21 Mar-21 Apr-21 Nov-19 Dec-19 Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20 Jul-20 Aug-20 Sep-20 Oct-20 Nov-20 Dec-20 Jan-21 Feb-21 Mar-21 Apr-21 Financials Average Index Weight Real Estate Average Index Weight Source: Bloomberg. The Index considered in the graphs above is Nifty Midcap 100 TRI Index. 21 PGIM India Midcap Opportunities Fund

  22. Sources of Alpha- Some winners identified early % Exposure in PGIM India Midcap Opportunities Fund 6 5.05 5.02 4.56 5 4.22 4.17 4.06 4.02 3.91 3.86 4 3.26 3.25 3.23 3.20 3.17 3.12 3.09 3.06 2.95 2.93 2.90 2.89 2.74 2.73 2.59 2.44 3 2.32 2.32 2.31 2.17 1.93 1.82 1.79 1.76 1.76 1.74 1.61 2 1.28 1.27 1 0 Oct-19 Nov-19 Dec-19 Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20 Jul-20 Aug-20 Sep-20 Oct-20 Nov-20 Dec-20 Jan-21 Feb-21 Mar-21 Apr-21 Bharat Rasayan Ltd. Atul Ltd. Companies have positive Operating Cash Flow (OCF) 70% of the time. Low D/E No corporate governance issues Source: Bloomberg. These stocks are only for illustration purposes and not a recommendation for investors. 22 PGIM India Midcap Opportunities Fund

  23. Quality Portfolio with low volatility 145.3% 150% 100.0% 100% 87.0% 50% 34.2% 15.9% 5.5% 0% ROE Debt to Equity^ Beta PGIM India Midcap Opportunities Fund Benchmark* A quality portfolio with a higher Return on Equity (ROE), lower debt to equity ratio vs the benchmark and lower volatility (portfolio beta) vs the benchmark. Data as on April 30, 2021. *Nifty Midcap 100 TR Index. ^Ex Financials. Source: Bloomberg 23 PGIM India Midcap Opportunities Fund

  24. Portfolio Positioning TOP 3 SECTORS OVER/UNDERWEIGHT Health Care -3.90 Financials -5.78 Utilities -8.20 Information Technology 3.33 Materials 5.01 Industrials 13.65 -10.0 -5.0 0.0 5.0 10.0 15.0 Data as on April 30, 2021. These are based on the Fund Manager’s outlook and are subject to change. Source: Bloomberg 24 PGIM India Midcap Opportunities Fund

  25. Portfolio Positioning TOP 5 SECTORS OVER/UNDERWEIGHT Crompton Greaves Consumer El -1.90 PI Industries Ltd -1.91 AU Small Finance Bank Ltd -2.01 Shriram Transport Finance -2.38 Adani Total Gas Ltd -2.99 ACC Ltd 2.49 Mindtree Ltd 2.57 SKF India Ltd 2.60 Aarti Industries Limited 2.84 ICICI Bank Ltd 4.31 -4.0 -3.0 -2.0 -1.0 0.0 1.0 2.0 3.0 4.0 5.0 Data as on April 30, 2021. These are based on the Fund Manager’s outlook and are subject to change. Source: Bloomberg 25 PGIM India Midcap Opportunities Fund

  26. To Summarize PGIM India Midcap Opportunities Fund A portfolio with Broadly three types of companies Companies with Characteristics of Respect for capital High growth Low overlap with the benchmark Sector dominance or able challengers Stable growth High ROE Turn around Consolidating industries Low Debt to Equity Ratio Solid Financials Beta less than 1 26 PGIM India Midcap Opportunities Fund

  27. Fund Performance Fund Nifty Midcap 100 TRI^ Returns (%) NIFTY 50 TRI# Returns (%) Value (INR)* Returns (%) Value (INR)* Value (INR)* PGIM India Midcap Opportunities Fund-Reg(G) Last 1 Year Last 3 Years Last 5 Years Since Inception 95.86 16.35 17.56 17.31 19,586.33 15,758.71 22,463.56 32,670.00 80.61 7.06 14.06 17.89 18,060.97 12,274.15 19,311.43 33,868.50 49.89 12.23 14.72 13.59 14,989.10 14,139.28 19,876.52 25,725.75 PGIM India Midcap Opportunities Fund(G)-Direct Plan Last 1 Year 99.44 Last 3 Years 18.32 Last 5 Years 19.32 Since Inception 18.67 19,943.95 16,571.88 24,199.34 35,580.00 80.61 7.06 14.06 17.89 18,060.97 12,274.15 19,311.43 33,868.50 49.89 12.23 14.72 13.59 14,989.10 14,139.28 19,876.52 25,725.75 Data as on April 30, 2021. Inception Date: Regular Plan: December 02, 2013; Direct Plan: December 02, 2013. CAGR – Compounded Annual Growth Rate.^ Scheme Benchmark. # Standard Benchmark. *Based on standard investment of ` 10,000 made at the beginning of the relevant period. Past performance may or may not be sustained in future and should not be used as a basis for comparison with other investments. Different plans have a different expense structure. Aniruddha Naha is managing this fund since April 5th, 2018. Performance of other schemes managed by Aniruddha Naha Last 1 Year Last 3 Year Last 5 Year Fund Manager Details Fund Manager Aniruddha Naha Managing Since April 5th 2018 Benchmark (%) Benchmark Scheme (%)Benchmark (%) Scheme (%) Benchmark (%) Scheme (%) PGIM India Flexi Cap Fund 73.40 55.74 15.96 10.46 17.30 14.79 Nifty 500 Past performance may or may not be sustained in future and should not be used as a basis for comparison with other investments. CAGR – Compounded Annual Growth Rate. The above returns are for Regular Plan - Growth Option. Different plans have a different expense structure. Mr. Aniruddha Naha is managing two schemes of PGIM India Mutual Fund. On account of the difference in the features of the schemes, the performance of these schemes is not strictly comparable. Please refer to www.pgimindiamf.com for details on performance of all schemes including direct plans. Data as on April 30, 2021. 27 PGIM India Midcap Opportunities Fund

  28. AUM Breakup AUM Breakup: Asset class wise disclosure of AAUM: AUM as on March 31, 2021 (Rs in Crores): Income: 1,754.23, Equity Other than ELSS: 2,200.09, Balanced: 0.00, Liquid: 668.86, Gilt: 124.38, Equity ELSS: 350.58, Hybrid: 821.60, GOLD ETF: 0.00, Other ETF: 0.00, Fund of Fund Investing Overseas: 1,068.03, Total: 6,987.77; Average AUM for the month: Income: 1,722.47, Equity Other than ELSS: 1,820.35, Balanced: 0.00, Liquid: 974.98, Gilt: 146.70, Equity ELSS: 357.63, Hybrid: 531.04, GOLD ETF: 0.00, Other ETF: 0.00, Fund of Fund Investing Overseas: 973.55, Total: 6,526.72; Disclosure of percentage of AUM by geography: % of Total AUM as on March 31, 2021: Top 5 cities: 52.19%, Next 10 cities: 16.76%, Next 20 cities: 5.29%, Next 75 cities: 25.77%, Other: 0.00%, Total: 100.00%; Disclosure of AUM by Service Category: AUM as on March 31, 2021 (Rs. in Crores): Mutual Funds: 6,988.00, PMS: 125.00, Advisory: 2,320.00, Total: 9,433.00. This information has been prepared by PGIM, Inc (”PGIM”). PGIM is the premirary asset management business of PFI and is a registered investment advisor with the US Securities and Exhange Commission. PFI, a company with corporate headquaters in the US, is not affiliated in any manner with Prudential plc, a company incorporated in the United Kingdom. 28 PGIM India Midcap Opportunities Fund

  29. Mid Cap Fund- An open ended equity scheme predominantly investing in mid cap stocks This product is suitable for investors who are seeking*: • Capital appreciation over long run • To achieve long term capital appreciation by predominantly investing in equity and equity related instruments of mid cap companies • Degree of risk – VERY HIGH Moderately High Moderate Low to Moderate High Very High Low RISKOMETER Investors understand that their principal will be at very high risk *Investors should consult their financial advisers if in doubt about whether the product is suitable for them.

  30. Connect with us on KNOW MORE 1800 2667 446 care@pgimindia.co.in www.pgimindiamf.com Important Disclosures: The information contained herein is provided by PGIM India Asset Management Private Limited (erstwhile known as DHFL Pramerica Asset Managers Pvt. Ltd.) (the AMC) on the basis of publicly available information, internally developed data and other third party sources believed to be reliable. However, the AMC cannot guarantee the accuracy of such information, assure its completeness, or warrant such information will not be changed. The information contained herein is current as of the date of issuance* (or such earlier date as referenced herein) and is subject to change without notice. The AMC has no obligation to update any or all of such information; nor does the AMC make any express or implied warranties or representations as to its completeness or accuracy. There can be no assurance that any forecast made herein will be actually realized. These materials do not take into account individual investor's objectives, needs or circumstances or the suitability of any securities, financial instruments or investment strategies described herein for particular investor. Hence, each investor is advised to consult his or her own professional investment / tax advisor / consultant for advice in this regard. The information contained herein is provided on the basis of and subject to the explanations, caveats and warnings set out elsewhere herein. The views of the Fund Manager should not be construed as an advice and investors must make their own investment decisions regarding investment/ disinvestment in securities market and/or suitability of the fund based on their specific investment objectives and financial positions and using such independent advisors as they believe necessary. © 2020 Prudential Financial, Inc. (PFI) and its related entities. PGIM, the PGIM logo, and the Rock symbol are service marks of PFI and its related entities, registered in many jurisdictions worldwide. Mutual fund investments are subject to market risks, read all scheme related documents carefully. Document Date: May 16, 2021 Document Number: C038/2021-22 3

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