PGIM India Global Equity Opportunities Fund of Funds: Diversify your portfolio with international equities

Global market context

Global equity markets have been volatile in 2025 due to trade policies of the United States administration, tariffs, counter-tariffs and geopolitical tensions arising from conflicts in different regions of the world. Rapidly shifting geo-political dynamics and realignments create both risks and opportunities for investors. In the current geo-political environment where countries are increasingly trying to protect their own trade and economic interests, international equities can add much needed diversification to your investment portfolio. In this article we will review the PGIM India Global Equity Opportunities Fund of Funds.

Why invest in Global Equity

• Winners rotate across markets: 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, NSE as on 24^th Oct 2025)



• Sector Exposure: Global markets offer access to sectors underrepresented in the Indian market. For example, MSCI ACWI has 27% allocation to IT versus only 9% in MSCI India. Similarly sectors like healthcare, consumer discretionary and communication services are underrepresented in MSCI India.
  
  

  

  (Source: MSCI as on 30^th Sep 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. For example, PGIM India Global Equity Opportunities FOF invests in Big Tech companies like NVIDIA, Microsoft, Meta (Facebook), Alphabet (Google) etc, through its underlying fund PGIM Jennison Global Equity Opportunities Fund. These companies have not only been at the forefront of advanced technologies / megatrends like AI, cloud computing, social media, gaming etc, they have also been wealth creators for their 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 the Rupee depreciates against major currencies like the US Dollar.

PGIM India Global Equity Opportunities FOF

PGIM India Global Equity Opportunities FOF employs a fund-of-funds strategy, with its assets invested in PGIM Jennison Global Equity Opportunities Fund. The fund was launched in May 2010. PGIM Jennison Global Equity Opportunities Fund 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.

Investment philosophy

Investment process

Outperformed Nifty across different investment periods

PGIM India Global Equity Opportunities FOF has consistently outperformed the domestic broad market index, Nifty 50 TRI across most time periods.

Source: Advisorkhoj research as on 30^th Sep 2025

The chart below shows the calendar year returns of PGIM India Global Equity Opportunities FOF versus the Nifty 50 TRI. You can see that fund outperformed Nifty by a big margin in certain years, while it underperformed in other years. Add this fund to your investment portfolio will portfolio stability in years in which domestic equity underperforms.

Source: Advisorkhoj research as on 30^th Sep 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 14^th Oct 2025

Investment Strategy and Portfolio Composition

The PGIM India Global Equity Opportunities FOF invests in the PGIM Jennison Global Equity Opportunities Fund which can invest without limit in non-US equity and may invest a significant portion of its assets in companies located in emerging markets. The chart below shows the market allocation of the fund. Around 64% of the assets are invested in the US stocks and the balance in other international markets (including emerging markets) and other assets.

Source: PGIM as on 30^th Sep 2025

The PGIM Jennison Global Equity Opportunities Fund may invest in stocks of any market cap size without particular focus on any one sector. The broad diversification helps mitigate sector-specific risks while capitalizing on global growth opportunities (see the charts below). The top holdings are mostly from Big Tech (Big 5) companies in the US.

Source: PGIM as on 30^th Sep 2025

Who should invest in PGIM India Global Equity Opportunities FOF?

• 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.