Fund Digest: Uncover opportunities of top mutual funds in India
Endowus Insights
Join our in-person China & HK Market Outlook event with Abrdn, Allianz Global Investors, and JPMAM. RSVP here

Fund Digest: Uncover opportunities of top mutual funds in India

Updated
30 Aug
2024
published
22 May
2024

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.

Source: Endowus Research, Bloomberg, Monthly Returns in USD. 

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.

<medium-btn-link>Find out more<medium-btn-link>

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.

<medium-btn-link>Find out more<medium-btn-link>

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.

<divider><divider>

Risk Warnings

Investment involves risk. Past performance is not an indicator nor a guarantee of future performance or returns. Projected performance or returns is not guaranteed to materialise. The value of investments and the income from them can go down as well as up, and you may not get the full amount you invested. 

Rates of exchange may cause the value of investments to go up or down. Individual stock performance does not represent the return of a fund.

General risk warnings relating to collective investment schemes 

Before making an investment decision, you are reminded to refer to the relevant prospectus/ offering document for specific risk considerations and related fees and charges.

Funds are not a bank deposit and not capital guaranteed, and is subject to investment risks, including the possible loss of the principal amount invested.  

Some of the funds also involve derivatives. Do not invest in them unless you fully understand and are willing to assume the risks associated with them.

Opinions

Any forward-looking statements, prediction, projection or forecast on the economy, stock market, bond market or economic trends of the markets contained in this material are subject to market influences and contingent upon matters outside the control of Endowus HK Limited (“Endowus”) and therefore may not be realised in the future. Further, any opinion or estimate is made on a general basis and subject to change without notice. In presenting the information above, none of Endowus HK Limited, its affiliates, directors, employees, representatives or agents have given any consideration to, nor have made any investigation of the objective, financial situation or particular need of any user, reader, any specific person or group of persons. Therefore, no representation is made as to the completeness and adequacy of the information to make an informed decision. You should carefully consider (i) whether any investment views and products/ services are appropriate in view of your investment experience, objectives, financial resources and relevant circumstances. You may also wish to seek financial advice through a financial advisor or the Endowus platform and independent legal, accounting, regulatory or tax advice, as appropriate.

No invitation or solicitation

Nothing contained [in this article] should be construed as a solicitation, an offer to buy or sale, or recommendation, to acquire or dispose of any security, commodity, investment or to engage in any other transaction in any jurisdiction in which such solicitation, offer to buy or sale would be unlawful under the securities laws in such jurisdiction. No information included [on this website/ in this article] is to be construed as investment advice or as a recommendation or a representation about the suitability or appropriateness of any advisory product or service; or an offer to buy or sell, or the solicitation of an offer to buy or sell, any security, financial product, or instrument; or to participate in any particular trading strategy. Investors should seek independent financial and tax advice before making any investment decision.

Product Risk Rating: Please note that any product risk rating (the “PRR”) provided by us is an internal rating assigned based on our product risk assessment model, and is for your reference only. The PRR is subject to change from time to time. The PRR does not take into account your individual circumstances, objectives or needs and should not be regarded as advice or recommendation to purchase, hold or sell any fund or make any other investment decisions. Accordingly, you should not solely rely on the PRR in making your investment decision in the relevant Fund.

Complex Products

Some of the funds contained in this article are complex products and investors should exercise caution when investing in these products. Though these products have been authorised by the SFC, authorization does not imply official recommendation. SFC authorization is not a recommendation or endorsement of a product nor does it guarantee the commercial merits of a product or its performance.

This advertisement has not been reviewed by the Securities and Futures Commission or any regulatory authority in Hong Kong.

Disclaimers
+
More on this Tag
All you need to know about personal finance and investing
Please wait while we are submitting your email...
Thank you! Your submission has been received!
invalid email address

Table of Content