Global scrips pip India in returns

China focused funds have emerged as a clear winner giving a return of 15-25 per cent during the past three months.

As compared to them, domestic equity oriented schemes have registered a negative growth in the range of 3 to 10 per cent.

Indian markets have underperformed global markets after foreign investors reduce their exposure after MAT row.

International equity schemes offered by mutual funds, which invest their corpus in overseas equity markets have managed to deliver superior returns to investors during the past three months.

During this calendar year, Indian markets have under-performed their global peers as stretched valuations, delay in reforms, controversies surrounding the levy of MAT and muted corporate earnings have led to broad based selling in domestic equities.

According to the data available with Value Research, a mutual fund tracking firm, international funds have given an average return of 6.85 per cent in the past three months as compared to negative returns generated by other equity oriented schemes. China focused funds have emerged as a clear winner giving a return of 15-25 per cent during the past three months.

“The Chinese economy is on the path of a revival because of a series of policy measures implemented by the Chinese government during the past one year. They had already slashed interest rates thrice in the last six months,” pointed out Gopal Agrawal, head of equity at Mirae Asset Global.

According to him, the sharp fall in the rupee against the dollar and a recovery in global commodity prices from their worst levels seen in January have also contributed to the strong performance registered by international equity schemes.