SEOUL, Jun. 30 (Korea Bizwire) — As stock markets of emerging Asian countries rallied this year, Indian funds yielded profits of more than 20 percent on average, outperforming other overseas equity funds.
Healthcare funds and Chinese funds also performed well, but Russian and Brazilian funds dropped in value.
On February 28, fund rating firm KG Zeroin revealed the results of a study conducted on foreign equity funds (public offerings) with a net asset value of 1 billion won or more and management period of two weeks or more, showing that Indian funds ranked first with an average rate of return of 21 percent.
The healthcare sector (17.49 percent) and Chinese stocks (15.79 percent) ranked second and third for the highest rate of return. These trends are derived from the booming economies and stock markets of emerging countries, which have both domestic and export growth momentum amid anticipation of a global economic recovery.
India’s equity market has seen impressive growth after an economic recovery spearheaded by Prime Minister Narendra Modi’s reform policies.
S&P SENSEX, India’s leading stock index, which accounts for 30 high-performing listed companies traded on the Bombay Stock Exchange (BSE), has jumped by 16.94 percent this year, ranking first among the indexes of major countries.
On the other hand, Russian and Brazilian funds, where rates of return were close to 50 percent last year, suffered losses of 9.6 percent and 4.45 percent, respectively.
“In the first half of the year, the funds of Russia, Brazil, South Africa and Australia have been very sluggish. These countries specifically depend on energy and resource industries,” said Yoon-su Oh, an analyst at KB Securities.
Among overseas funds, Indian and Chinese funds were the top five performers.
Mirae Asset TIGER India Reverie ETF, an Indian ETF (Exchange Traded Fund), has had the best performance with a 38.69 percent rate of return this year, followed by Mirae Asset TIGERMSCIEM Leverage ETF, Mirae Asset China Growth 1 Type A, and Mirae Asset China Discovery 1 Type A.
In addition, the overseas fund attracting the most investment in the first half of this year was AB Global High-Yield (Fund of Funds) Type A, with a net inflow of 525 billion won, followed by East Spring US Bank Loan Special Asset (H) [Mortgage Loan] Class A, and Franklin US Interest Rate Interlocking Plus Special Assets (Mortgage Loan) Class A.
Among foreign equity funds, Fidelity Global Technology (Fund of Funds) Type A and Fidelity Global Dividend Income (Fund of Funds) Type A were popular among investors, although Indian funds attracted the largest net inflow at 268.2 billion won.
by Kevin Lee (email@example.com)