PGIM India Hybrid Equity Fund was launched way back in February 2004. Till now, it used to invest in domestic equities and debt. However, it has now started investing in international equities via PGIM Jennison Global Equity Opportunities Fund. Therefore, according to the press release, the fund now invests in three different asset classes – domestic equity, domestic debt, and international equity. However, according to the Securities & Exchange Board of India (SEBI), foreign securities will not be treated as a separate asset class. It further says that adding international equity, which has a low correlation with other asset classes, would result in lower portfolio volatility. Below is the performance of the fund as against its category average.
Ajit Menon, CEO of PGIM India Mutual Fund said, “PGIM India Hybrid Equity Fund has been existent since 2004. It has shown the ability to change gears and adapt to market conditions. For instance, in the narrow market of 2018-19, the fund maintained a 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.”