Economic resilience and potential for sustained long-term growth have been the two drivers behind India’s remarkable stock market performance, with MSCI India (USD) returning 8.58% since the beginning of 2024 through the end of April. The market outperformed its emerging market counterparts and the broader indices. The market’s longer-term performance has been impressive as well.
India in the Spotlight — Top India mutual funds
India's growth narrative is compelling, underpinned by a younger demographic, reform-oriented governance, and a robust corporate landscape. With approximately 110 million individuals set to join the workforce by 2030 and a median age significantly younger than its global counterparts, India is poised for a demographic dividend that promises to boost labour supply, productivity, and consumption. Furthermore, the government’s reform agenda, including significant tax cuts and labour law rationalisations, has improved the investment climate, making India an attractive destination for both domestic and foreign investors.
The resilience of the Indian market in the face of these adversities highlights the underlying strength of India's economy and the diverse opportunity set available to investors. Investors looking to participate in India’s growth via an investment in Indian equities can consider these funds as a satellite allocation. Out of the top mutual funds in India, a carefully curated selection of India-themed equity funds is available on the Endowus Fund Smart platform.
PineBridge India Equity Fund
ISIN: IE00B0JY6L58 (USD)
PineBridge India Equity Fund adopts an active strategy, which is a fundamental- and research-driven, high-conviction approach. The portfolio comprises 30 to 40 stocks with a medium to long-term investment horizon. The fund’s strategy is also marked by a blend of quality and valuation analysis, aiming for long-term asset growth through investments in companies with strong management and business models. The fund emphasises conservative investment choices to achieve robust long-term returns with a lower risk profile.
It is managed by veteran portfolio manager Elizabeth Soon, the Head of Asia ex-Japan Equities with over 30 years of investing experience. She works closely with and is further supported by PineBridge’s on-the-ground Indian team. The fund’s equity research process, also known as Lifecycle Categorization Research , is a framework that unlocks alpha opportunities by capturing the dynamic nature of a company’s growth outlook beyond market-consensus views.
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Goldman Sachs India Equity Portfolio
ISIN: LU0333810181 (USD), LU2725941129 (HKD)
Goldman Sachs India Equity Portfolio focuses on delivering long-term capital appreciation by investing in companies with robust fundamentals and strong ESG practices. The fund presents a diversified portfolio spanning 70-100 names, offering comprehensive exposure to India Equities across sectors and market capitalizations, with a tilt towards small and medium-sized companies.
Led by Hiren Dasani, the India Equity research team drives strong and consistent performance through meticulous stock selection, consistently outperforming its reference index over various periods. Grounded in a philosophy emphasising business and valuation, the fund's robust investment process combines bottom-up fundamental research with cash flow-based analysis to identify companies with sustainable high returns on capital investment.
Despite experiencing management changes several years ago, the fund's performance has consistently outperformed over multiple periods, showcasing its resilience and strategic adaptability across cycles.
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Compelling growth story, yet not without volatility
Despite the stellar long-term returns, the recent economic and investment environment in India was not without volatility. In 2023, there were several key events which challenged the Indian equity markets, including the Adani-Hindenburg Row, the El Nino Scare, and the recent Indian elections.
The Adani-Hindenburg Row: The Adani Group is an one of the largest Indian conglomerates. It encountered allegations by short-seller Hindenburg Research in January 2023 on the improper use of tax havens and stock manipulation, which affected the conglomerate's stock price as well as raising broader concerns about corporate and market transparency in India.
El Niño Scare: The potential impact of El Niño on India’s monsoon season in 2023-24 added another layer of uncertainty, with concerns about its implications on agriculture, inflation, and overall economic growth.
2024 Indian Election: Despite predictions of a landslide victory, President Modi's BJP Party lost its parliamentary majority in June 2024, and had to form a coalition government as a result. This outcome disrupts Modi's agenda and introduces political complexities that have unsettled financial markets immediately after post-election, yet historically Indian equity markets had performed well under a coalition government.
Nonetheless, these uncertainties have not deterred investor interest in the top mutual funds in India, as we outline above. Particularly, companies within the renewable energy and digital infrastructure space continued to perform strong, benefiting from global trends and supportive domestic policies.
Keen for more?
To help you explore best-in-class strategies suitable for your investment plan, Endowus offers mutual funds at zero subscription and switching fees, the access to lower-cost institutional share class funds, which are not normally available to retail investors at other distributors. To date, Endowus has created more than US$40 million annual savings for our clients. That’s how you can lower your investing expense over time and keep more returns on your investment.
Check out our other curated fund offerings available through Endowus Hong Kong by exploring our investment fund list.
*Annualised returns are calculated based on the returns of the target share class, and the oldest share class of the fund where the target share class is younger than three years. Three-year returns are based on the period from May 2021 to April 2024 unless otherwise stated. Five-year returns are based on the period from May 2019 to April 2024 unless otherwise stated. Returns are translated into USD and are net of fund-level fees.
**Where a fund or portfolio has both HKD and USD share classes, the fees of the USD share class are shown. Total portfolio and fund-level fees include fund total fund-level fees.
***Endowus does not charge a preliminary sales charge or any other additional fees, other than the all-in Endowus Fee.
Note: Past performance is not an indication of future. Returns are not guaranteed.
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