GEMGAZE
April 2012

A global equity fund invests in stock markets around the globe. These funds have a portion of their investments invested in North America. Europe, and Asia. Some of these funds own hundreds of securities so that you can participate within the growth prospects of numerous firms through diversifying the risk linked with investing in distinct organizations worldwide. A great global equity fund will probably be a foundation for a well-diversified mutual fund portfolio for pretty much any investor.

Five sparkling GEMs among the global equity funds in India in 2011 have retained their preeminent status in 2012 also. Fidelity International Opportunities Fund, with very low investment in foreign equity and a lacklustre performance, has not made it to the mark. Besides, Mirae Asset Global Commodity Stock Fund, by virtue of its dismal performance, has been shown the exit door.

Principal Global Opportunities Fund Gem
Consistent resilience

With an AUM of Rs 37.49 crores, Principal Global Opportunities Fund has earned a one-year return of 3.57% as against the category average of -1.79%. Being a feeder fund, the performance of the fund depends entirely on Principal Global Investors –Emerging Market Equity. 98% of the portfolio is in equity, predominantly mid and small cap stocks. The expense ratio of the fund is 2.42% and the portfolio turnover ratio is 10%.

Templeton India Equity Income Fund Gem
Long term bet

With an AUM of Rs 1015 crores, the one-year return of the Templeton India Equity Income Fund is -7.02% as against the category average of -5.73%. Though the mandate is to invest up to 50% of its assets in foreign equity, it has peaked at 35% with majority of the investments in Asian stocks. The fund employs a value-based investment approach and looks for stocks that have an attractive dividend yield. The fund maintains a fairly compact portfolio of around 31 stocks (average over the past one year), out of which around 22 are listed in India. Barring Tata Chemicals, no Indian stock has accounted for more than 8% of the portfolio; foreign stocks have not exceeded the 5% mark. Its long-term returns put it in a good light. The expense ratio of the fund is 2.04% and the portfolio turnover ratio is 9.5%.

DWS Global Thematic Offshore Fund Gem
Skating on thin ice

With an AUM of a mere Rs 13.54 crores, the one-year return of DWS Global Thematic Offshore Fund is 4.91% as against the category average of -1.79%. The entire portfolio is invested in DWS Invest Global Thematic Fund. The expense ratio is 1.6%

Sundaram Global Advantage Fund Gem
Cost advantage

Sundaram Global Advantage Fund has an AUM of Rs 54.59 crores. The one-year return of the fund is 1.96% as against the category average return of –1.79%. The fund has invested in 11 foreign equity mutual funds, with DB Tracker Emerging Markets Asia and Fidelity South East Asia being the top two funds. The expense ratio is a mere 0.75%.

ICICI Prudential Indo Asia Equity Fund Gem
Expensive proposition

ICICI Prudential Indo Asia Equity Fund has an AUM of Rs. 183.78 crores. Its one-year return is –1.9% as against the category average return of –6.13%. 32% of the portfolio is in IOF Asian Equity Fund and 90% of the portfolio is in large cap stocks. Nearly 50% of the portfolio is in financial services stocks, with technology and energy constituting 13% and 10% respectively. The expense ratio of the fund is 2.38% and the portfolio turnover ratio is 65%.