Top 3 International Funds Doubled in Five Years

The global investment landscape offers immense opportunities for investors. International mutual funds, which pool investor money to purchase stocks and securities in companies outside of one’s home country, have emerged as a popular avenue for diversification and potentially amplified returns. Here, we discuss the top three international mutual funds that defied expectations, achieving a remarkable feat by doubling in value within a five-year timeframe and soaring even more. We’ll explore their allocation, risks, returns, and top holdings

Following are the three mutual funds that doubled in the last 5 years:

Motilal Oswal Nasdaq 100 Fund of Fund

The Motilal Oswal Nasdaq 100 Fund of Fund, as of March 20th, 2024, has a Net Asset Value (NAV) of Rs 30.3514, with a fund size of Rs 4,612.29 crore, constituting 6.94% of the investment in its category. Its expense ratio stands at 0.58%, significantly lower than the category average of 1.07%.

This scheme has outperformed both the NASDAQ-100 Index and the category average with returns of 43.47%, compared to 28.55% for the index and 20.78% for the category average. Its asset allocation predominantly comprises equity (99.96%), with minimal holdings in debt (0.17%) and cash & cash equivalents (-0.14%).

However, it comes with higher volatility as indicated by its standard deviation of 21.78 compared to the category average of 13.09, along with a beta of 0.54 versus 0.53 for the category. The fund’s top holding is the Motilal Oswal NASDAQ 100 ETF-G, accounting for 100% of its holdings.

PGIM India Global Equity Opportunities Fund

The PGIM India Global Equity Opportunities Fund, as of March 20, 2024, has a NAV of Rs 40.19 with a fund size of Rs 1,439 crore and an expense ratio of 2.38%. It significantly outperforms the MSCI All Country World Index, with a return of 48% compared to the index’s 28.25% and the category average of 22.71%.

However, it exhibits high volatility, as indicated by its standard deviation of 23.72 versus the category average of 13.09, while maintaining a low beta of 0.47 compared to the category average of 0.53. Despite this, its risk-adjusted returns are subpar, with a Sharpe ratio of 0.02 versus the category average of 0.23 and a Treynor’s ratio of 0.01 versus -0.09 for the category average.

The fund primarily allocates 98.14% to equity, 1.45% to debt, and 0.41% to cash and cash equivalents, with its top holding being the PGIM Jennison Global Opportunities Fund USD I Accumulation Foreign Mutual Fund, constituting 98% of its portfolio.

ICICI Prudential US Bluechip Equity Fund

The ICICI Prudential US Bluechip Equity Fund, as of March 20th, 2024, holds a Net Asset Value (NAV) of Rs 58.74, marking a 1.03% change. With a fund size of Rs 3,053.55 crore, constituting 1.07% of the investment in its category, the fund maintains an expense ratio of 2%, slightly below the category average of 2.13%.

Over the past year, the scheme has yielded returns of 25.04%, falling short of its benchmark, the S&P 500 International, which recorded 31.92%, and the category average of 41.24%. The fund primarily allocates its assets, 98.31%, to foreign equity holdings, boasting a portfolio turnover ratio of 85.00%, below the category average of 102.55%. Noteworthy top holdings as of February 2024 include The Walt Disney Co. (3.06%), Salesforce Com (2.97%), and Wells Fargo ORD SHS (US) (2.82%).

In terms of risk, the fund exhibits higher volatility compared to its category, with a standard deviation of 19.45 versus 14.72 and a beta of 0.99 versus the category average of 0.86.

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Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. The information is based on various secondary sources on the internet and is subject to change. Please consult with a financial expert before making investment decisions.