PGIM India Midcap Opportunities Fund Regular Growth INF663L01DZ4

PGIM India Midcap Opportunities Fund earns an Average Process Pillar rating.

The leading factor in the rating is the fund's strong long-term risk-adjusted performance. This can be seen in its five-year alpha calculated relative to the category average, which suggests that the managers have shown skill in their allocation of risk. The size of the portfolio management team also reinforces the process. With four portfolio managers, the fund is reasonably well-resourced. However, the process is limited by its parent firm's disappointing risk-adjusted performance, as shown by the firm's average 10-year Morningstar Rating of 2.9 stars. A lower star rating suggests that the firm has struggled to outperform on a risk-adjusted basis.

This strategy has tended to hold more growth stocks than others in the Mid-Cap Morningstar Category. But in terms of market capitalization, it is on par with peers. Examining 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. 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. This means the fund holds consistently profitable, growing companies with solid balance sheets that may help it weather downturns better than Morningstar Category peers. Compared with category peers, the strategy also had more exposure to the Quality factor in the most recent month. Given the low trading volume of holdings, this strategy has also tilted toward illiquid assets during these years. Less-liquid stocks might offer strong returns to compensate for their risks, but they can be harder and more expensive to trade in bear markets. In recent months, the strategy also had less Liquidity factor exposure than 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 is overweight in industrials and healthcare relative to the category average by 3.6 and 2.6 percentage points, respectively. The sectors with low exposure compared with category peers are energy and utilities; however, the allocations are similar to the category. The portfolio is composed of 78 holdings and invests 25.8% of assets in its top 10 holdings, similar to the category average. And finally, in terms of portfolio turnover, on a year-over-year basis, 71% of the fund's holdings have turned over, whether through increasing, decreasing, or changing a position.