Returns so far
In 2015, the ALPS Kotak India Growth Fund (INDAX) returned -4.6%. The top holding of the portfolio, Infosys Ltd. (INFY), formed 5.7% of the fund’s portfolio and has returned 7.5% over the same period. The second-largest holding, HDFC Bank Ltd (HDB), returned 19.2% over the same period. ICICI Bank Ltd. (IBN), which forms 3.5% of the portfolio, returned -34.3%.
The following chart shows the average annual returns of the fund as compared to the returns of the benchmark index, the MSCI India Index, for different periods.
The inception date of INDAX was February 14, 2011. The fund has returned about 6% since inception. The fund has underperformed the benchmark index in 2015.
The performance breakdown
Investors in the Indian equity market saw poor returns in 2015. The benchmark index S&P BSE Sensex returned a loss of 3.7%. This is in sharp contrast to 2014, where it had given a stellar return of ~32%. The monthly returns of the sectoral indexes of the S&P BSE (Bombay Stock Index) show that healthcare was the best-performing sector in 2015. The S&P BSE Healthcare Index returned 15.6% over the year, in rupees.
Sun Pharmaceuticals Industries Limited, which forms over 3% of INDAX’s portfolio, returned -0.41% in 2015. Cipla Healthcare Ltd., which forms over 1% of the portfolio, returned 3.4% over the same period. Cadila Healthcare Ltd., which forms over 1% of the portfolio, returned 3.9%.
Financials formed the largest part in INDAX’s portfolio, and this sector was among the worst-performing sectors in 2015. The S&P BSE Finance returned -5%. Information technology, the second-largest part of the portfolio, returned 6.6%, in rupees.
In the next part, we will analyze the portfolio of another India-focused fund, the Matthews India Fund (MINDX).