 "Best-performing India-focused offshore equity funds, ETFs in June quarter")
The average performance of India-focused offshore funds and ETF category surged 11.86% during the June 2023 quarter, mirroring the overall upward trend of the Indian equity market. But despite good performance, it marginally underperformed the MSCI India USD Index, which posted a growth of 12.36%, shows data analysed by Morningstar.
Quarterly Returns of India-Focused Offshore Funds and ETFs Versus the MSCI India Index
Quarterly Returns of India-Focused Offshore Funds and ETFs Versus the MSCI India Index
Out of the universe of 286 funds under consideration, 83 managed to outperform both the category average and the MSCI India USD Index during the quarter ended June 2023.
After a lackluster March 2023 quarter, the Indian equity markets witnessed a strong rally during the quarter ended June 2023 where the S&P BSE Sensex Index registered a gain of 9.71% through the quarter. However, the mid- and small-cap segments were the major beneficiaries. While the S&P BSE Midcap Index surged by 19.57%, the S&P BSE Small Cap Index appreciated by 20.94%.
Over longer spans of one and three years, the performance of the offshore and ETF category has been a mixed bag. Although the category has performed slightly better over the past year, over the past three years it has lagged the index.
Performance of the 10 Largest India-Focused Offshore Equity Funds and ETFs as of June 2023
Source: Morningstar Direct. Data as of June 30, 2023. All performances as of June 2023 and denominated in US dollars. Returns greater than one year are compounded annualised. Oldest share class of fund considered.
The largest fund among the India-focused offshore fund and ETFs, iShares MSCI India ETF, delivered a return of 10.7% during the quarter but underperformed the category average of 11.9% and the MSCI India GR USD Index (12.4%). Over longer periods of one and three years, the fund has underperformed both category peers and the index, shows data analysed by Morningstar.
The largest fund among the India-focused offshore fund and ETFs, iShares MSCI India ETF, delivered a return of 10.7% during the quarter but underperformed the category average of 11.9% and the MSCI India GR USD Index (12.4%). Over longer periods of one and three years, the fund has underperformed both category peers and the index, shows data analysed by Morningstar.
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Over the course of the quarter, Ashoka WhiteOak India Opportunities A USD Acc was the top-performing fund, clocking a return of 15.5% during the quarter, outperforming the category average and the MSCI India GR USD Index. Its
performance over longer periods is also impressive, as it has outperformed the category average and index over one- and three-year time frames.
The average performance of India-focused offshore funds and ETF category surged 11.86% during the June 2023 quarter, mirroring the overall upward trend of the Indian equity market. But despite good performance, it marginally underperformed the MSCI India USD Index, which posted a growth of 12.36%, shows data analysed by Morningstar.
Quarterly Returns of India-Focused Offshore Funds and ETFs Versus the MSCI India Index
Quarterly Returns of India-Focused Offshore Funds and ETFs Versus the MSCI India Index
Out of the universe of 286 funds under consideration, 83 managed to outperform both the category average and the MSCI India USD Index during the quarter ended June 2023.
After a lackluster March 2023 quarter, the Indian equity markets witnessed a strong rally during the quarter ended June 2023 where the S&P BSE Sensex Index registered a gain of 9.71% through the quarter. However, the mid- and small-cap segments were the major beneficiaries. While the S&P BSE Midcap Index surged by 19.57%, the S&P BSE Small Cap Index appreciated by 20.94%.
Over longer spans of one and three years, the performance of the offshore and ETF category has been a mixed bag. Although the category has performed slightly better over the past year, over the past three years it has lagged the index.
Performance of the 10 Largest India-Focused Offshore Equity Funds and ETFs as of June 2023
Source: Morningstar Direct. Data as of June 30, 2023. All performances as of June 2023 and denominated in US dollars. Returns greater than one year are compounded annualised. Oldest share class of fund considered.
The largest fund among the India-focused offshore fund and ETFs, iShares MSCI India ETF, delivered a return of 10.7% during the quarter but underperformed the category average of 11.9% and the MSCI India GR USD Index (12.4%). Over longer periods of one and three years, the fund has underperformed both category peers and the index, shows data analysed by Morningstar.
The largest fund among the India-focused offshore fund and ETFs, iShares MSCI India ETF, delivered a return of 10.7% during the quarter but underperformed the category average of 11.9% and the MSCI India GR USD Index (12.4%). Over longer periods of one and three years, the fund has underperformed both category peers and the index, shows data analysed by Morningstar.
Over the course of the quarter, Ashoka WhiteOak India Opportunities A USD Acc was the top-performing fund, clocking a return of 15.5% during the quarter, outperforming the category average and the MSCI India GR USD Index. Its
performance over longer periods is also impressive, as it has outperformed the category average and index over one- and three-year time frames.
Fidelity India Focus A-USD delivered a return of 10.3%, lowest among the 10 largest funds. This did have an impact on relative performance over one and three years, respectively. Five Best- and Worst-Performing India-Focused Offshore Equity Funds and ETFs During the Quarter Ended June 2023
Life Retail was the top-performing fund in the India-focused offshore fund and ETF category during the quarter with a return of 30.0%. It outperformed the category average (11.9%) and MSCI India USD Index (12.4%) by a huge margin.
"The fund's performance over longer time frames leaves a lot to be desired. In fact, this was the worst-performing fund in the previous quarter," said the report by Morningstar Direct.
ONE India Opportunity IA, the top-performing fund in the previous quarter, was the worst-performing fund this quarter. It was the only fund in the category to suffer a loss (of 3.7%) during the quarter.
The fund's performance over longer time frames is also not impressive as it has underperformed its category average and index across time frames.
5 Best- and Worst-Performing India-Focused Offshore Equity Funds and ETFs Over 1 Year as of June 2023
While the India-focused offshore funds and ETF category underperformed the MSCI India USD Index during the quarter, it managed to marginally outperform the same over a one-year period. While the category average over one year stood at 14.8%, the MSCI India USD Index delivered 14.7% return over the same period.
Only two funds from the category delivered negative performance over a one-year period.
ENAM India Growth A1 was the best performer over a one-year period, returning 33.1%. The fund's performance over the three-year period is also very impressive. It clocked a return of 34.2%, significantly outperforming the category average (14.8%) and the MSCI India USD Index (14.7%)
India Value Investments Ltd £ was the worst-performing fund over a one-year period, returning negative 10%.