Before starting, one important clarification matters. DHFL Pramerica Mutual Fund no longer operates under that name. The fund house was taken over and rebranded as PGIM India Mutual Fund. All existing schemes continue under this new name, regulated in the same way and invested through the same mutual fund framework.
If you were searching for DHFL Pramerica Mutual Fund, this guide explains how to invest in its current form, covering everything in detail.
Understanding DHFL Pramerica Mutual Fund (Now PGIM India)
DHFL Pramerica Mutual Fund was a joint venture that offered equity, debt, hybrid, and tax-saving mutual fund schemes in India. After the change in ownership, the asset management business was renamed PGIM India Mutual Fund.
What did not change:
- Your existing investments (if any)
- Scheme objectives and structures
- SEBI regulations and investor protections
- The way mutual funds work in India
Only the brand name and ownership changed.
Step 1: Set Your Investment Goal First
Never start with a fund. Always start with a goal.
Ask yourself:
- Why am I investing?
- When will I need this money?
- How much risk can I handle emotionally and financially?
Typical goals:
- Short term (1–3 years): emergency fund, planned expenses
- Medium term (3–5 years): car, business capital, higher studies
- Long term (5+ years): retirement, child’s education, wealth creation
Your answers decide whether you should choose equity, debt, or hybrid funds.
Step 2: Know the Types of Funds Offered
PGIM India (earlier DHFL Pramerica) offers all major mutual fund categories.
Equity Funds
Invest mainly in stocks. Suitable for long-term goals and investors who can tolerate short-term market ups and downs.
Debt Funds
Invest in bonds, treasury bills, and money-market instruments. More stable and suitable for conservative investors or short-term needs.
Hybrid Funds
Mix of equity and debt. Designed to balance growth and stability.
ELSS (Tax-Saving Funds)
Equity-oriented funds with a three-year lock-in that may help reduce taxable income under Section 80C.
Step 3: Complete Your KYC (Mandatory)
You cannot invest in any mutual fund without KYC.
Documents usually required:
- PAN card
- Aadhaar or valid address proof
- Bank account details
KYC is a one-time process. Once completed, it is valid across all mutual fund houses in India.
Step 4: Decide How You Want to Invest
You have two main choices.
Lump Sum Investment
You invest a one-time amount. Suitable when:
- You have surplus funds
- Your investment horizon is long
- You’re comfortable with market fluctuations
Systematic Investment Plan (SIP)
You invest a fixed amount at regular intervals, usually monthly.
Why SIPs are preferred by most investors:
- No need to time the market
- Encourages saving discipline
- Reduces impact of volatility
- Works well with monthly income
Step 5: Choose Direct Plan or Regular Plan
Every scheme comes in two variants.
Direct Plan
- Lower expense ratio
- Better long-term returns
- No intermediary commission
- Best if you’re confident managing your investments
Regular Plan
- Bought through an advisor or distributor
- Slightly higher cost
- Helpful if you want guidance
Choose based on your comfort level, not just returns.
Step 6: Select the Right Scheme Carefully
This is the most critical step.
When choosing a PGIM India scheme, look at:
- Fund objective vs your goal
- Risk level shown on the riskometer
- Consistency of performance over time
- Expense ratio
- Investment style and portfolio quality
Avoid choosing a fund just because it performed well last year.
Step 7: Make the Investment
You can invest through:
- Mutual fund investment apps
- Bank investment platforms
- Registered mutual fund distributors
- The AMC’s official investment platform
Typical process:
- Log in or create an account
- Ensure KYC is complete
- Select the PGIM India Mutual Fund scheme
- Choose SIP or lump sum
- Enter amount and confirm payment
Units are allotted based on the applicable NAV.
Step 8: Monitor, But Don’t Overreact
Mutual fund investing does not require daily tracking.
- Review once every 6–12 months
- Check if the fund still matches your goal
- Ignore short-term market noise
- Rebalance only when your goals or income change
Patience often matters more than action.
Taxation Basics (Simple Overview)
- Equity funds:
- Short-term gains are taxed
- Long-term gains above the exemption limit are taxed
- Debt funds:
- Tax depends on holding period and income slab
Tax rules can change, so periodic review is important.
Common Mistakes to Avoid
- Investing without a clear goal
- Chasing recent top-performing funds
- Stopping SIPs during market falls
- Ignoring expense ratios
- Holding too many funds without purpose
Simple, disciplined investing usually works best.
Final Thoughts
Investing in DHFL Pramerica Mutual Fund today means investing in PGIM India Mutual Fund. The process is straightforward: set a goal, complete KYC, choose the right fund category, invest through SIP or lump sum, and stay consistent.
