BackPGIM India Hybrid Equity adds global equities to portfolio
The change in dynamics of the fund building means that the asset classes low correlation to each other resulting in low portfolio volatility
PremiumPGIM India Hybrid Equity Fund on Friday announced that it has started investing in international equities through its PGIM Jennison Global Equity Opportunities Fund. The fund invests in three different assets classes – domestic equity, domestic debt and international equity.
The change in dynamics of the fund building means that the asset classes low correlation to each other resulting in low portfolio volatility. “This makes the fund attractive for investors looking for an opportunity to achieve investment growth via allocation to steady compounders (currently, market share gainers), global disruptors and stability via fixed income allocation, maintained as high quality low duration investments," the fund house said in a statement.
Hybrid funds invest in both debt and equity instruments to achieve diversification and avoid the concentration risk. According to the fund house, an optimum blend of the two has the potential for higher returns than a regular debt fund, being less volatile as compared to pure equity funds. Hybrid funds aim to achieve wealth appreciation in the long-run and generate income in the short-run via a balanced portfolio.
“PGIM India Hybrid Equity Fund has been existent since 2004, it has shown ability to change gears and adapt to market conditions. For instance, in the narrow market of 2018-19, the fund maintained very low proportion of equity allocation to the broader market. Now with better growth visibility and broadening of markets, the fund's equity exposure is well diversified, with exposure to mid/small caps significantly higher than that of the benchmark. Adding investments in international equities showcases another adaptability feature of the Fund to further improve risk adjusted return potential, over market cycles," said Ajit Menon, CEO PGIM India Mutual Fund.
The fund house manages 22 open-ended funds.
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