If you are a long-term fund investor, you’d better pay attention to Indian mutual funds. A local fund market information provider said Monday it found those who invested in Indian stocks over the last 11 years reaped better returns than any other funds investing in overseas equities.
According to Zeroin, a local fund market information provider, a survey of mutual funds registered with the nation’s financial regulator on their returns between the beginning of 1996 and Nov. 20 this year, showed the average annual return of Indian equity funds topped 26.3 percent, in terms of the Indian currency.
For instance, if an investor invested 10 million won ($10,750) in the Indian fund in 1999, it would now be valued at over 70 million won, it said.
Indonesian equity-type mutual funds followed with a 17.09 percent average annual return.
Sector funds investing in natural resources in the world posted an annual return of 14.9 percent and funds investing in social overhead capital projects posted a 14.5 percent gain.
Mutual funds investing in Japanese small to mid-size capitalization stocks ranked fifth with an average annual return of 14.14 percent.
Equity-type funds investing in Japanese stocks yielded a 0.92 percent return, the lowest return among overseas funds.
Equity type sector funds investing in the financial shares were the least volatile, while funds investing in Japanese small to mid-size caps were the most volatile.
In terms of short-term gains, funds investing in Chinese stocks came out on top.
Investment in Chinese stock, run by overseas management funds, gained around 50 percent on average this year until Nov.3. Funds investing in India were ranked third with a 30 percent return.
``It’s desirable for investors to choose funds in line with the types of their investment pattern,’’ Woo Hyun-sup, an official of Zeroin, said.
He said investment in overseas funds will be rewarding for the time being as the mutual fund market, which was in a slump between 2000 and 2002, has been recovering since 2003.
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