PGIM India Emerging Markets Equity Fund is introduced by PGIM India Mutual Fund. It is an open-ended equity fund of fund scheme investing in PGIM Jennison Emerging Markets Equity Fund. PGIM India Mutual Fund is wholly owned by the global investment management business of Prudential Financial, Inc known as PGIM.
MSCI Emerging Markets Index is the criterion for the fund. The underlying fund is managed by Albert Kwok, Sara Moreno, and Mark B. Baribeau, whereas the Indian fund is managed by A. Anandha. The primary objective of this is to generate capital in long run by investing in the units of PGIM Jennison Emerging Markets Equity Fund, which invests primarily in equity and equity-related securities of any company.
Fund Approach is based on the following: (i) Concentrated strategy with a high conviction approach ie, 35-45 holdings allows for a best idea’s portfolio (ii) they focus on companies with a strong competitive strategy which edge over the competition through innovative or creative ideas of new markets for existing products (iii) Stock selection process based on the fundamental research and stock level risk evaluation and constant monitoring at a stock level in order to ensure that the stocks in the same sector do not have any high correlation.
The fund is suitable for investors who are in need of capital growth over the long term and looking to invest in units of overseas mutual funds. In recent years, a perceptible shift can be seen in the growth of emerging markets. A powerful driver for emerging markets is middle-class spending, which 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 more attractive as there is no limitation on a sector or region and can get a benefit for investors substantially. Ajit Menon, CEO of PGIM India Global Equity said that rapid economic growth, higher consumption, innovation, greater flexibility of financial markets stand out in favor of available and emerging markets. This fund has a very low overlap with the PGIM India Global Equity Opportunities Fund and is, therefore, a strong complementary addition from their part, he added.