Core Insights - The performance of domestic equity funds has significantly lagged behind international funds, with only 10 out of 494 domestic active equity funds achieving positive returns in SIP mode since April 2025, while 60 out of 62 international funds reported gains, including a remarkable 164% return from Nippon India Taiwan Equity Fund [1][12] Domestic vs International Performance - Domestic portfolios have faced substantial losses, contrasting sharply with the high returns from international funds, where DSP World Mining Overseas Equity fund returned 82% and other funds like Mirae Asset Global Electric & Autonomous Vehicles Equity fund and HSBC Brazil Fund delivered nearly 60% [2][12] - Emerging market funds also performed well, with returns in the 47-53% range, significantly outperforming domestic equity funds [2][12] Factors Influencing Performance - The performance gap in FY26 is attributed to several factors, including explosive growth in hyperscalers, AI-driven tech dominance, rising metals and energy prices, continuous rupee depreciation against the dollar, and a slowdown in the earnings cycle in India [5][12] Long-term Perspective - Wealth advisors caution against making investment decisions based solely on short-term performance, noting that over a five-year period, domestic small and mid-cap SIPs delivered 26-30% CAGR, outperforming Nasdaq 100 and Nifty 50 [6][7][12] Investment Recommendations - Experts recommend a 15-20% allocation to international funds for retail investors with a minimum five-year investment horizon to achieve meaningful diversification [8][12] - For first-time global investors, starting with a Nasdaq 100 feeder fund or global multi-asset fund is advised, while avoiding chasing last year's winners or investing heavily in single-country EM funds initially [9][12] Currency Considerations - The discipline of SIP is particularly important in global funds due to currency timing, as it helps smooth out entry points despite currency depreciation [10][12] Future Outlook - There is uncertainty regarding whether international funds will continue to outperform domestic ones in FY27, with a focus on global exposure for optimal returns rather than higher returns [10][12] - The recent surge in global indices is viewed as largely cyclical, and while global exposure is deemed essential, it is acknowledged that markets will eventually adjust to sectoral patterns [10][12]

Core Insights - The analysis indicates that nearly 46% of equity mutual funds delivered positive returns in FY26, with 253 out of 553 funds achieving this [18] - International funds, particularly those focused on sectors like technology and energy, showed significant returns, with the Nippon India Taiwan Equity Fund leading at 158.46% [19] Performance of Funds - Top-performing international funds included: - Nippon India Taiwan Equity Fund: 158.46% return [19] - DSP World Mining Overseas Equity Omni FoF: 83.26% return [19] - ICICI Pru Strategic Metal and Energy Equity FoF: 69.93% return [19] - DSP Global Clean Energy Overseas Equity Omni FoF: 69.53% return [19] - HSBC Brazil Fund: 56.23% return [19] - Other notable performers: - Edelweiss Greater China Equity Off-shore Fund: 45.48% return [5] - Mirae Asset Global X Artificial Intelligence & Technology ETF FoF: 44.55% return [5] - Mirae Asset S&P 500 Top 50 ETF FoF: 35.82% return [5] - DSP Global Innovation Overseas Equity Omni FoF: 28.84% return [5] - Kotak Global Innovation Overseas Equity Omni FOF: 28.83% return [5] Factors Influencing Performance - The strong performance of international funds was attributed to: - US market strength and an AI-led rally in large-cap tech [6] - Global commodity and energy price increases [7] - Depreciation of the Indian Rupee against the US Dollar [7] - Geopolitical tensions leading to higher oil prices, benefiting global energy and mining companies [7] Recommendations for Investors - Investors are advised to maintain a balanced approach, limiting international fund allocation to no more than 5% of their overall portfolio [8] - A diversified investment strategy is recommended, focusing on large-cap and flexi-cap funds for stability while also including mid-cap and small-cap funds [16] - For FY27, a market cap allocation of 55% in large caps, 20% in mid caps, and 25% in small caps is suggested to manage volatility [16] Negative Performers - Among the 300 funds that reported negative returns, the Quant Teck Fund had the largest loss at approximately 28.13% [13] - Other underperformers included: - Samco Active Momentum Fund: -16.9% [13] - HDFC Technology Fund: -15.33% [14] - Tata Digital India Fund: -14.39% [14] - Invesco India ESG Integration Strategy Fund: -10.21% [14]

Core Insights - The analysis indicates that around 11 equity mutual funds have delivered over 50% returns since the last Holi celebrated on March 14, 2025, with two funds achieving returns exceeding 100% [12] Performance of Top Funds - Nippon India Taiwan Equity Fund and DSP World Mining Overseas Equity Omni FoF achieved returns of 112.79% and 111.56% respectively since March 14, 2025 [12] - ICICI Pru Strategic Metal and Energy Equity FoF offered a return of 86.07%, while HSBC Brazil Fund yielded 66.85% [12] - Other notable performers include DSP Global Clean Energy Overseas Equity Omni FoF at 63.15%, and Edelweiss Emerging Markets Opp Eq. Offshore Fund and HSBC Global Emerging Markets Fund at 59.50% and 58.40% respectively [12] Performance of Specific Funds - Kotak Global Emerging Market Overseas Equity Omni FOF delivered a return of 56.18%, followed closely by Mirae Asset Global Electric & Autonomous Vehicles Equity Passive FOF at 55.44% [2][12] - HDFC Defence Fund, the only actively managed fund focused on the defence sector, provided a return of 41.68% [5][12] - Funds from Edelweiss Mutual Fund, including Edelweiss Europe Dynamic Equity Off-shore Fund and Edelweiss Greater China Equity Off-shore Fund, delivered returns of 39.40% and 39.05% respectively [5][12] Performance of Underperforming Funds - Quant Teck Fund, a technology sector-based fund, experienced the largest loss at approximately 17.19% since the last Holi [8][12] - Tata Digital India Fund and Samco Active Momentum Fund reported losses of 9.59% and 9.06% respectively [8][12] - Additional underperformers include Samco Multi Cap Fund and Quant Consumption Fund, which lost 5.06% and 4.92% respectively [9][12] Overall Fund Performance - A total of 551 equity mutual funds were analyzed, with 531 funds providing positive returns and 20 funds showing negative returns since the last Holi [12] - The performance evaluation was conducted from March 14, 2025, to March 2, 2026, considering all equity mutual funds, including regular and growth options [10][12]

Core Insights - Many mutual fund investors have missed opportunities in international markets due to regulatory restrictions on new investments into such funds, while those who remained invested have benefited from overseas market rallies [1][5]. Group 1: Fund Performance - The asset under fund of funds (FoF) investing in global markets increased by 28% to ₹35,965 crore in November from ₹28,065 crore in January, driven by mark-to-market gains [2]. - The HSBC Brazil Fund and Edelweiss Europe Dynamic Equity Offshore Fund achieved the highest returns of 56% and 51%, respectively, over the last year [2]. - The DSP World Gold Mining Overseas Equity Omni FoF and DSP World Mining Overseas Equity Omni FoF delivered exceptional returns of 169% and 80%, respectively, in the past year [3]. Group 2: Regulatory Environment - The Securities and Exchange Board of India (SEBI) has restricted mutual funds from accepting fresh inflows into overseas funds since 2022, capping the mutual fund industry's overseas investment at $7 billion, with a separate limit of $1 billion for exchange-traded funds [4]. Group 3: Investor Behavior - High net worth and ultra-high net worth investors have utilized the Liberalized Remittance Scheme (LRS) to invest in overseas markets, while retail investors who maintained their investments in overseas funds benefited from mark-to-market gains [5]. Group 4: International Market Performance - The Nifty 50 index returned approximately 9% in 2025, while the Dow Jones Industrial Average, Nasdaq Composite, and S&P 500 indices returned 13%, 20%, and 17%, respectively [6]. - The MSCI All Country World Index rose over 21% last year, reaching a record high, with European stocks benefiting from bank-heavy gains [6]. - South Korea's KOSPI index saw a remarkable increase of nearly 76%, while Hong Kong's Hang Seng Index rose nearly 31%, and Japan's Nikkei 225 increased by about 28% [7].

Core Insights - International funds outperformed domestic funds in September, driven by a strong performance in the US tech sector and NASDAQ 100 [16][19] - Overall, equity mutual funds showed stable but subdued performance amid global challenges such as tariff concerns and geopolitical tensions [16][19] Fund Performance - The top-performing fund was DSP World Mining Overseas Equity Omni FoF, which delivered a return of 13.15% in September, followed by Mirae Asset Global Electric & Autonomous Vehicles Equity Passive FOF with 11.88% [1][19] - Other notable performers included Invesco Global Consumer Trends FoF at 11.27%, Mirae Asset Hang Seng TECH ETF FoF at 11.22%, and Mirae Asset Global X Artificial Intelligence & Technology ETF FoF at 10.68% [19] - A total of 577 funds were analyzed, with 268 providing positive returns and 305 yielding negative returns [19] Negative Performers - The worst-performing funds included Motilal Oswal Midcap Fund (-5.59%), Motilal Oswal Multi Cap Fund (-4.88%), and Motilal Oswal Business Cycle Fund (-4.79%) [10][19] - Technology sector funds also faced losses, with Kotak Technology Fund and others losing between 3.20% to 4.41% [11][19] Market Outlook - The market outlook remains positive entering the final quarter of CY25, supported by strong GDP growth of 7.8% in Q1 FY26 and revised inflation forecasts of 3.1% for FY26 [17][19] - Rate cuts from the RBI and recent GST cuts are expected to enhance corporate profitability and consumption [17][19] Investment Strategy - For SIP investors, it is advised to continue existing investments and consider using festive bonuses to enhance contributions [17][19] - New lump-sum investors are recommended to adopt a staggered approach over 3-4 weeks, transitioning from debt to equity to manage volatility [17][19]