PGIM India Global Equity Opportunities Fund: A Comprehensive Review

Market context

Global equity markets have been very volatile in the past year following geopolitical tensions, Fed rate cut speculations, major countries around the world holding their elections, and more recently the Trump 2 Tariff rate levies. Back home, the Nifty and Sensex slid since October, with Nifty closing February 2025 just a little higher than its 52-week low tumbling down nearly 6%, closing just above the 22,000 level. On the other hand, equity market performance differed across markets (see the graphic below).

(Source: NSE, S&P 500, Hang Seng, MSCI, Bloomberg as on 28^th Feb 2025. Returns are in local currency. MSCI ACWI returns are in USD)

For investors, these divergent patterns underscore the continued importance of geographical diversification alongside sector allocation decisions. In this article we will review the PGIM India Global Equity Opportunities Fund.

Why invest in Global Equity

The diverse performance patterns across major global indices reflect both regional economic conditions and sector composition differences. The technology-dominated NASDAQ has delivered exceptional long-term returns despite recent volatility, with ten-year performance far outpacing traditional blue-chip indices. Japanese markets have demonstrated renewed strength after decades of underperformance, while Hong Kong's market continues navigating complex regional dynamics. The FTSE 100 exhibits characteristics of a mature market with substantial defensive attributes.

Global economic shifts, including evolving trade relationships, energy transitions, and demographic changes continue to drive differential performance across these benchmark indices. Global investment diversification remains a prudent strategy for investors in these markets for several reasons. These are:

• Geographic Diversification: Investing solely in Indian markets exposes investors to country-specific risks. Historically we have seen that different markets perform well at different points of time. The MSCI All Country World Index invests in various markets, including the United States, United Kingdom, Japan, and Germany, Canada and China among others. The chart below shows the annual returns of MSCI ACWI Index (in INR) versus Nifty 50 TRI (representing Indian equities). You can see the MSCI ACWI outperformed Nifty 50 in 5 out of 10 years, while Nifty 50 outperformed MSCI ACWI in 5 out of 10 years. Adding overseas equity will provide richer diversification to your investment portfolio and stability of returns across different market conditions.
  
  

  

  (Source: MSCI as on 28^th Feb 2025)



• Sector Exposure: Global markets offer access to sectors underrepresented in the Indian market. For example, MSCI ACWI has 24.5% allocation to IT versus only 13.2% in Nifty 50. Similarly sectors like healthcare, consumer discretionary and communication services are underrepresented in Nifty.
  
  

  

  (Source: MSCI, NSE as on 28^th Feb 2025)



• Access to Global Leaders: Global funds facilitate investment in global market leaders and innovators that might not be available on Indian exchanges. Many of these companies are shaping global mega-trends and disrupting the industry. They can provide attractive wealth creation opportunities to Indian investors.


• Currency Diversification: In an era of currency fluctuations, global investments can provide a hedge against rupee depreciation, potentially enhancing returns for Indian investors when converted back to domestic currency.

PGIM India Global Equity Opportunities Fund Regular Growth

The PGIM India Global Equity Opportunities Fund employs a fund-of-funds strategy, with its assets invested in PGIM Jennison Global Equity Opportunities Fund. The fund was launched in January 2013, and is managed by Mr. A Anandha Padmanabhan and Mr Vivek Sharma. The scheme will predominantly invest in the units of PGIM Jennison Global Equity Opportunities Fund (the Underlying Fund), and or similar mutual funds, having an investment objective, strategy & risk profile similar to the stated underlying fund.

The PGIM Jennison Global Equity Opportunities Fund’s investment ideas are generated by the investment teams’ research analysts, as well as by a screening process that identifies companies with fundamental characteristics the team believes will contribute to longer term performance. Companies identified through the initial research and screening process become the focus of rigorous research, which focus on three primary aspects: competitive position, ability to execute business strategy and valuation. The PGIM Jennison Global Equity Opportunities Fund can invest without limit in non-US equity and equity related securities. The PGIM Jennison Global Equity Opportunities Fund may invest in securities of issuers of any market capitalization size without particular focus on any one sector.

Outperformed Nifty across different investment periods

PGIM India Global Equity Opportunities fund has consistently outperformed the Nifty 50 TRI in different time periods since its inception.

Source: Advisorkhoj research as on 28^th Feb 2025

Consistent top quartile performance

The PGIM India Global Equity Opportunities Fund remained in the top 2 quartiles in 5 out of the last 7 years (see the chart below).

Source: Advisorkhoj research as on 28^th February 2025

Wealth creation through SIP

The chart below shows growth of Rs 10,000 monthly SIP in the fund since inception. With a cumulative investment of Rs 17.8L, you can accumulate a corpus of Rs 43.4L.

Source: Advisorkhoj research as on 28^th Feb 2025

Investment Strategy and Portfolio Composition

The PGIM India Global Equity Opportunities Fund invests in the PGIM Jennison Global Equity Opportunities Fund which can invest without limit in non-US equity and equity related securities. The PGIM Jennison Global Equity Opportunities Fund may invest in securities of issuers of any market capitalization size without particular focus on any one sector. The fund's underlying investments span across sectors including Cash Equivalent, Tech, Consumer Cyclical, Communication, Health, Industrial, Consumer Defensive, Utilities, and Financial Services. This broad diversification helps mitigate sector-specific risks while capitalizing on global growth opportunities. The chart below represents the top underlying holdings of the PGIM Jennison Global Equity Opportunities Fund.

Source: PGIM AMC (data as on 28^th Feb 2025)

Who should invest in PGIM India Global Equity Opportunities Fund?

• Investors with a long-term investment horizon of more than 5 years


• Investors with a high to very high-risk tolerance


• Investors who want a global market equity exposure

Consult your mutual fund distributor or financial advisor to understand if the fund is suitable for your profile.