Matthews India Fund

Financials are the major holdings in Indian funds The three funds in this review—the ALPS Kotak India Growth Fund (INDAX), the Matthews India Fund (MINDX), and the Wasatch Emerging India Fund (WAINX)—provide investors access to Indian equities. The financial sector represents most of these funds’ respective portfolios, according to their latest releases. As of June […]

The FPI, which was on a losing spree before December 16, came back strongly. Indian stock markets also started gaining.

The RBI’s (Reserve Bank of India) move to reduce key interest rates in India in April was expected.

In this part, we’ll compare WAINX to four similar India-focused funds. These include INDAX, MINDX, ETGIX, and FIGZX.

With 2015 behind us, we will study the prospects of Indian equities in 2016. We will look at certain macro indicators and the performance of the Indian equity market.

Within the last six years, 2009 was the best year in terms of returns for all three funds in existence then.

Components of inflation While food inflation in India has been pushing retail inflation up, fuel inflation (BP) (STO) (RDS.B), another important component, has been subdued. According to the October monetary policy statement issued by the RBI (Reserve Bank of India), “Fuel inflation has moderated steadily through the year so far.” The RBI has also announced […]

The RBI thinks that risks to inflation are “tilted to the upside.” A subsequent rise in inflation could have a negative impact on consumer spending.

Industrial production remains a problem for India, with the RBI (Reserve Bank of India) noting that the index measuring industrial production decelerated in fiscal 2015–16.

Indian stock market indexes fell on April 5 when the Reserve Bank of India cut the repo rate by 25 basis points.

The WisdomTree India Earnings ETF (EPI) is the most traded ETF that invests in Indian stocks. However, it is not the largest in terms of asset size.

Healthcare was the best-performing sector in Indian markets in 2015.

The Matthews India Fund gave a negative return of -0.6% in 2015. However, it still managed to outperform its benchmark.

MINDX seeks to invest at least 80% of its total assets in publicly traded common stocks, preferred stocks, and convertible securities of companies located in India.

Among the BRICS, the most concerning at this point in time is China. The world’s second largest economy is slowing down and undergoing a structural shift.

In 2015, the Matthews India Fund returned -0.56%. It outperformed the benchmark index S&P BSE 100 over all the periods reviewed.

The Matthews India Fund (MINDX) invests mainly in small-cap and mid-cap Indian stocks. As of November 2015, the fund had $1.5 billion in assets under management.

In 2015, the ALPS Kotak India Growth Fund returned -4.6%. The top holding of the portfolio, Infosys, formed 5.7% of the fund’s portfolio and returned 7.5% in 2015.

In this series, we will analyze the performance of the Indian equity market in 2015. The S&P BSE Sensex, considered as a benchmark index, gave a return of -3.7% in 2015, expressed in Indian rupees.

After the first four months of an impressive net inflow of FPI, Indian equities lost a substantial investment of foreign money. August 2015 witnessed the highest exodus of foreign money from Indian equities.

Infrastructure companies are normally highly leveraged. A highly leveraged company has a higher dependence on debt from banking and financial institutions.

Despite the government’s efforts, the infrastructure sector seems far from being on the recovery path.

India’s net FPI (foreign portfolio investment) has been negative on almost all days in December, especially for the equity segment, which saw a net outflow of $287 million on December 1.

According to India’s government, the construction sector is valued at over $126 billion.

The current global economy is under stress. Major benchmark equity indexes around the globe have given dismal returns, and India is no exception.

On November 10, 2015, the government of India announced major reforms in FDI (foreign direct investment). The government has introduced reforms in 15 major sectors of the economy.

IGZX has given a return of 4.2% over a period of one year. The fund has outperformed the benchmark index over the past year.

The YTD return of the ALPS Kotak India Growth Fund is about 1%. On a cumulative basis, the fund has returned 30.8% since inception.

The Indian market’s PE and PBV multiples were lowest in fiscal 2013. The dividend yield was best in fiscal 2013.

In this series, we’ll briefly overview the Indian equity market. Specifically, we’ll analyze trends in the Indian equity market over the past five years.