Morningstar classifies all funds that invest in stocks overseas under the Global Large-Cap category.
We short-listed funds with the best three-year performance in the category for a detailed look. Here are the top five funds, after searching only for ‘growth’ options and eliminating funds not available to individual investors.
Mirae Asset Global Commodity Stocks: The fund has returned 25.24% annualised over the past three years. It looks to invest a major corpus into stocks of commodity firms globally.
According to the latest disclosed data, the fund held about 30% in Indian commodity stocks while the rest was in international equities, ADRs and GDRs.
In top holdings, energy major Reliance Industries was about 7.99% of assets while Anglo-Australian mining giant BHP Billiton was at 7.33% of the fund’s portfolio.
Kotak Global Emerging Market: According to the investment objective, the fund invests in overseas funds that invest in emerging-market equities.
As of January 31, the fund had 70.70% of assets in T. Rowe Price Global Emerging Markets, a 3-star Morningstar-rated fund and 24.19% in iShares MSCI Emerging Markets ETF, a 4-star ETF that our US analysts view as slightly costly.
That fund has netted compounded 24.93% over the past three years.
Principal Global Opportunities: The fund of fund invests in U.K.-based Principal Emerging Market Equity Fund, a 3-star fund that invests in emerging markets globally.
Top holdings of the Principal Emerging Market Equity Fund include Korean electronic giant Samsung, Brazilian commodity majors Vale and Petrobras and Taiwan Semiconductor Manufacturing Co.
Principal Global Opportunities has a 3-year annualized return of 24.09% to show for.
Tata Growing Economies Infra A: The fund "aims to invest in equities of companies in infrastructure and other related sectors in the growing economies of the world including India".
However, the fund traditionally invests mostly in Indian companies. Its latest disclosed data suggests an overweight on financial and energy stocks. Over three years, the fund has logged a return of 22.37%.
AIG World Gold: The AIG World Gold Fund invests in the Falcon Gold Equity, a U.S. fund that invests in stocks of gold companies.
The Falcon Gold Equity is rated 4 stars by Morningstar and invests in leading companies engaged in mining, processing and marketing gold such as Canadian Goldcorp and Randgold.
Thanks to the run-up in gold prices in the past few years, which rubbed off on stocks of gold companies, the AIG World Gold Fund has returned 20.60% in three years.
