Before investing in a mutual fund scheme, investors often examine the past returns of that scheme and compare them with the similar schemes that fall under the same category.
Although past returns do not guarantee the future returns, investors invariably give a lot of emphasis to them.
Here, we list out the top-performing mutual funds in the category of fund of funds (FOFs) investing in overseas schemes.
At the outset, let us first understand what are FOFs investing in overseas funds.
As per Sebi’s categorisation of mutual funds, fund of funds are mutual fund schemes that invest in the units of other schemes of the same mutual fund or other mutual funds. They are mandated to invest a minimum of 95 percent of investment in the underlying fund.
Notably, fund of funds which invest in exchange traded funds (ETFs) listed on foreign exchanges were asked to discontinue accepting fresh inflows from 1 April onwards.
This is because 95 percent of the $1 billion limit set by the banking regulator for overseas ETFs was hit, shows the AMFI data. The capital markets regulator Sebi has communicated the rule for ETF feeder funds to Amfi, which has informed the mutual fund houses. However, some international funds are still open for investment, and one can get the list here.
Here, we sort out the schemes which have delivered returns more than 30 percent in the past one year.
| FOFs investing in overseas funds | 1-year-return (%) |
| Mirae Asset NYSE FANG+ ETF FoF | 80.90 |
| Edelweiss US Technology Equity FoF | 51.61 |
| Motilal Oswal Nasdaq 100 FOF | 40.99 |
| Kotak Nasdaq 100 FOF | 40.97 |
| Invesco India – Invesco EQQQ NASDAQ-100 ETF FoF | 40.85 |
| Axis NASDAQ 100 FoF | 40.05 |
| Franklin India Feeder Franklin US Opportunities Fund | 38.38 |
| DSP Global Innovation FoF | 38.01 |
| Navi NASDAQ 100 FoF | 37.89 |
| SBI International Access – US Equity FoF | 33.28 |
(Source: AMFI; Returns as on April 4, 2024)
As we can see in the table above, the highest return of 80 percent was delivered by Mirae Asset NYSE FANG+ ETF FoF.
Other fund of funds which delivered over 40 percent return in the past one year included Edelweiss US Technology Equity FoF, Motilal Oswal Nasdaq 100 FOF, Kotak Nasdaq 100 FOF, Invesco India – Invesco EQQQ NASDAQ-100 ETF FoF and Axis NASDAQ 100 FoF.
Note: This story is for informational purposes only. Please speak to a SEBI-registered investment advisor before making any investment related decision.
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Published: 06 Apr 2024, 10:51 AM IST