How the Matthews India Fund Performed in Comparison to Benchmark


Jan. 20 2016, Updated 4:54 p.m. ET

Returns as compared to the benchmark

We will now look at the returns given by the Matthews India Fund (MINDX) and compare them to the returns of the benchmark. The fund considers the S&P BSE 100 as its benchmark. However, we have taken the MSCI India Index USD for parity of analysis. The chart below shows the comparative returns on an average annual basis. The fund has outperformed the benchmark over all the periods reviewed.

MINDX gave a negative return of -0.6% in 2015. However, it still managed to outperform the benchmark. It also emerged as the second best performing fund among similar India-focused funds. We will analyze the fund’s comparative performance in detail in the last part of the series.

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Historical returns

The chart above shows the annual returns of MINDX and that of the benchmark for the past seven years. The fund has outperformed the benchmark in all years except for 2009 and 2013 where it underperformed marginally. In the past seven years, MINDX had given the best returns of 97.3% in 2009.

While 2014 was a year of strong returns for the Indian equity market, 2015 was disappointing. The S&P BSE Sensex gave a negative return of 9.2% in US dollar terms. The financial sector (HDB) (IBN), which has the highest composition in the fund’s portfolio, was a letdown, as it emerged among the worst three sectors. The S&P BSE Finance returned a loss of about 10% in 2015 in US dollar terms. In the Indian equity market, healthcare (RDY) was the best performing sector in 2015. The S&P BSE Healthcare gave a return of 10.6%. Taro Pharmaceutical Industries (TARO), which forms over 5% of the portfolio, returned 4.8% in 2015.

In the next article, we will do a moving average analysis of some of the top holdings of MINDX.


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