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PGIM India Mutual Fund launches 'Emerging Markets Equity Fund'

PGIM India Emerging Markets Equity Fund, an open-ended equity fund of fund scheme investing in PGIM Jennison Emerging Markets Equity Fund. Photo: Ramesh Pathania/MintPremium
PGIM India Emerging Markets Equity Fund, an open-ended equity fund of fund scheme investing in PGIM Jennison Emerging Markets Equity Fund. Photo: Ramesh Pathania/Mint

The fund is suitable for investors looking to invest in units of overseas mutual funds that invest in equity securities of companies around the emerging market universe in the early stage of acceleration in their growth.

PGIM India Mutual Fund, introduces PGIM India Emerging Markets Equity Fund, an open-ended equity fund of fund scheme investing in PGIM Jennison Emerging Markets Equity Fund. PGIM India Mutual Fund is a wholly owned business of PGIM, the global investment management business of Prudential Financial, Inc.

The fund is benchmarked with MSCI Emerging Markets Index. The underlying fund is managed by Albert Kwok, Sara Moreno, and Mark B. Baribeau, while the India fund is managed by A. Anandha. The primary objective is to generate long term capital growth from investing in the units of PGIM Jennison Emerging Markets Equity Fund, which invests primarily in equity and equity-related securities of companies located in or otherwise economically tied to emerging markets countries.

Fund Approach:

  • Concentrated strategy with a high conviction approach: 35-45 holdings allows for a best ideas’ portfolio
  • Focus on companies with strong competitive moats: Edge over competition through innovation or creation of new markets for existing products
  • Stock selection process based on proprietary fundamental research
  • Stock level risk evaluation: Constant monitoring at stock level to ensure that the stocks in the same sector do not have high correlation

The fund is suitable for investors who are seeking capital growth over the long term, looking to invest in units of overseas mutual funds that invest in equity securities of companies around the emerging market universe in the early stage of acceleration in their growth.

“We have seen a perceptible shift in growth towards emerging markets in recent years. A powerful driver for emerging markets is the middle-class spending that is expected to grow from about $37 trillion in 2017 to $64 trillion by 2030, accounting for a third of global GDP growth.

Investing in emerging markets is attractive as there is no limitation on a sector or region and can benefit investors substantially. Rapid economic growth, greater consumption, cutting edge innovation, greater resilience of financial markets stand out in favour of emerging markets", said Ajit Menon, CEO, PGIM India Mutual Fund. “This fund has a very low overlap with our PGIM India Global Equity Opportunities Fund and is therefore a strong complementary addition." he added.

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