The asset base of the India-focused offshore funds and ETFs category swelled during the quarter ended December 2023 following the sharp rally in the Indian equity markets and robust net inflows. Assets surged by a huge 20.6 per cent through the quarter to $72.2 billion from the $59.8 billion recorded in the previous quarter, showed data analysed by Morningstar.
The assets of the 10 largest India-focused offshore funds and ETFs shot up by a huge 23% during the quarter ended December 2023 to $31 billion from $25 billion in the previous quarter. These funds account for almost 43% of the India-focused offshore fund and ETF category’s assets.
IShares MSCI India ETF continues to retain its top spot as the largest fund in the India-focused offshore fund and ETF category. During the quarter, it received net inflows of $1.23 billion, which propelled its asset size by a massive 30.8% to $7.90 billion from $6.04 billion in the previous quarter.
WisdomTree India Earnings ETF recorded the highest growth in assets at 52.2%, driven by strong returns and a quarterly net inflow of $512 billion.
5 Best- and Worst-Performing India-Focused Offshore Equity Funds and ETFs in the Quarter Ended December 2023
Samsung dominated the top-performing funds list during the quarter. The top five performers were Samsung funds. Driven by strong mid- and small-cap rally, Samsung India S-M Foc Fdr Eq-Drv Ae Hdgd, Samsung Classic India SM Pension FdrEq-Drv Ce Hdg, and Samsung India S-M Focus Master Equity were the top three performing funds during the quarter. They were followed by Samsung India S-M Foc Fdr Eq Ce Unhedged and Samsung India Feeder Equity-Deriv 3 A. Except for Samsung India Feeder Equity-Deriv 3 A, all the other funds delivered strong performance over the one- and three-year periods as well, outperforming the category as well as the index.
Over a one-year period, India-focused offshore funds and ETF category delivered a return of 22.3%, outperforming the MSCI India USD Index’s 21.3% return. None of the funds from the category delivered a negative performance over a one-year period.
As seen in the table below, Capital India Medium & Small Cap Eq TWD, a Taiwan-domiciled fund, was the best performer over the one-year period, returning 46.6%.
First Published: Feb 14 2024 | 9:45 AM IST