PGIM AMC has resumed SIP, lumpsum and STP investments for its three international schemes
PGIM AMC has resumed accepting investments for its three foreign schemes starting July 3, 2023, through Systematic Investment Plan (SIP), Systematic Transfer Plan (STP), and lumpsum. The schemes include PGIM India Global Equity Opportunities Fund, PGIM India Emerging Markets Equity Fund, and PGIM India Global Select Real Estate Securities Fund of Fund.
Mutual funds can invest up to $1 billion in overseas schemes. The Securities and Exchange Board of India (Sebi) rules require mutual funds to restrict their maximum exposure to foreign stocks to $1 billion, while the overall industry limit for overseas schemes is $7 billion.
However, Sebi in February 2022 barred mutual funds from investing in overseas funds after they breached the overall industry limit. This decision was revoked in June 2022 to allow AMCs to accept subscriptions for overseas funds that haven’t breached their individual $1 billion limit as of February 1, 2022. It will enable them to continue receiving investments in their existing registered SIPs and STPs of these schemes. Besides, it will permit lumpsum or switch-in subscriptions, fresh SIP (all frequencies), and fresh STP (only monthly frequency).
In a June 17, 2022 letter, Sebi said mutual funds are permitted “to accept subscriptions and invest in overseas funds/securities up to the headroom available without breaching the overseas investment limits as of February 1, 2022.” This allows PGIM AMC to resume subscriptions for its three overseas schemes until the available limit is exhausted.
Snapshot Of Funds
The PGIM India Global Equity Opportunities Fund predominantly invests in the units of PGIM Jennison Global Equity Opportunities Fund (underlying fund) and other similar mutual funds.
“The PGIM Jennison Global Equity Opportunities Fund can invest without limit in non-US equity and equity related securities, and may invest a significant portion of its assets in companies located in emerging markets,” the fund house says on its website.
Its other fund, the PGIM India Emerging Markets Equity Fund, aims for long-term capital growth by investing in units of its underlying fund PGIM Jennison Emerging Markets Equity Fund. The underlying fund primarily invests in equity and equity-related securities of companies linked to emerging markets countries.
Similarly, the PGIM India Global Select Real Estate Securities FoF seeks long-term capital appreciation by investing in units of its underlying fund PGIM Global Select Real Estate Securities Fund. “The scheme seeks to generate long-term capital appreciation from investing in the units of PGIM Global Select Real Estate Securities Fund, which invests in REITs and equity and equity-related securities of real estate companies throughout the world,” says PGIM.