Fund of Fortnight

This is our mutual fund recommendation. Every fortnight, we recommend one open-ended equity diversified fund that has the best potential of returns for the next one year considering its constituents remain the same. [EasyDNNnews:PaidContentStart]

Reason for recommendation 

Over the last couple of months, international funds are on rage and have been able to outperform most of the funds dedicated to domestic equity. But this was not the case a few months back when international funds had grossly underperformed the equity mutual funds for the nine months ending September 2024. However, this highlights the importance of having international funds in your portfolio. Therefore, our recommendation for this issue is PGIM India Global Equity Opportunities Fund, which invests in PGIM Jennison Global Equity Opportunities Fund. 

This fund has demonstrated a strong performance compared to its category average across multiple timeframes. Its sixmonth return stands at 8.25 per cent, significantly ahead of the 6.5 per cent category average. The fund has particularly excelled in the last one-year period, with a return of 28.24 per cent compared to the category’s 19.83 per cent. Over the longer term, the five-year return of 18.36 per cent far surpasses the 10 per cent category average and its 10-year return of 11.47 per cent outshines the category’s 8.27 per cent. 

The fund offers a well-diversified geographical exposure, which sets it apart from many international funds with heavy North American concentration. While 67.33 per cent of the fund’s portfolio is invested in North America, this is lower than the category average of 84 per cent, providing better diversification. The fund has a significant allocation in Europe at 22.36 per cent, compared to the category’s mere 2.34 per cent, allowing investors to capitalise on European market opportunities. 

It also holds 8.09 per cent in Latin America, which is much higher than the category average of 0.89 per cent. The fund’s top holdings are a blend of global technology giants and highgrowth companies which have performed exceptionally well over the past year such as Apple Inc. and Microsoft Corp, among others. Investors with a high-risk appetite may invest in the fund but not beyond 5 per cent of the portfolio with a long-term investment horizon. For those who have not yet forayed into international funds, this could be the right entry to become a part of the global equity market.

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