Industry’s 1st such diversified hybrid product with 3 asset classes viz. Equity, Debt and International Equities that would help lower portfolio volatility.
PGIM India Hybrid Equity Fund has now started investing in International equities through the PGIM Jennison Global Equity Opportunities Fund, PGIM India Mutual Fund said in a statement. It further said that the fund invests in three different assets classes – Domestic Equity, Domestic Debt and now International Equity which have low correlation to each other resulting in low portfolio volatility.
The fund may now attract more 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 statement said.
Ajit Menon, CEO PGIM India Mutual Fund said, “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.”
What is Hybrid Fund?
Hybrid funds invest in both debt and equity instruments to achieve diversification and avoid the concentration risk. An optimum blend of the two have 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.