Before investing in a mutual fund scheme, investors often look at the past returns of the scheme and compare it with similar schemes falling in the same category.
Although past returns do not guarantee future returns, investors always give more weight to past returns.
Here we list the best performing mutual funds in the category of Fund of Funds (FOF) that invest in overseas schemes.
First, let's understand what FOF is, which invests in overseas funds.
According to Sebi's classification of mutual funds, a fund of funds is a mutual fund scheme that invests in units of other schemes of the same mutual fund or other mutual funds. They are required to invest at least 95% of their investment amount in the underlying fund.
In particular, funds of funds that invest in exchange-traded funds (ETFs) listed on foreign exchanges were asked to stop accepting new funds from April 1st.
This is because it has reached 95% of the $1 billion cap set by banking regulators on foreign ETFs. AMFI data. Capital markets regulator Sebi passed on the rules regarding ETF feeder funds to Amfi, which in turn notified mutual fund companies. However, some international funds are still accepting investments and a list is available here.
Here we list schemes that have achieved returns of 30% or more over the past year.
| FOF investing in overseas funds | 1 year return (%) |
| Milleaset NYSE FANG+ ETF FoF | 80.90 |
| Edelweiss US Technology Stock FoF | 51.61 |
| Motilal Oswal NASDAQ 100 FOF | 40.99 |
| Kotak Nasdaq 100 FOF | 40.97 |
| Invesco India – Invesco EQQQ NASDAQ-100 ETF FoF | 40.85 |
| Axis Nasdaq 100 FoF | 40.05 |
| Franklin India Feeder Franklin American Opportunity Fund | 38.38 |
| DSP Global Innovation FoF | 38.01 |
| Navinasdaq 100FoF | 37.89 |
| SBI International Access – US Stocks FoF | 33.28 |
(Source: AMFI; Returns as of April 4, 2024)
As you can see from the table above, the highest return of 80% was delivered by Mirae Asset NYSE FANG+ ETF FoF.
Also Read: Best Mutual Funds: These Best-Performing Equity Funds Returned Over 40% in FY24
Other funds of funds that have delivered over 40% returns in the past year include Edelweiss US Technology Stock FoF, Motilal Oswal Nasdaq 100 FOF, Kotak Nasdaq 100 FOF, Invesco India – Invesco EQQQ NASDAQ-100 ETF FoF, We have the Axis Nasdaq 100 FoF.
Note: This story is for informational purposes only. Please consult a SEBI registered investment advisor before taking any investment related decisions.
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Published: April 6, 2024, 10:51 AM IST
