Latest news with #ChiragMuni
Economic Times
02-07-2025
- Business
- Economic Times
Should you keep investing? Here's what market data says
In this insightful conversation, ET Markets' Neha Vashishth speaks with Chirag Muni, Executive Director at Anand Rathi Wealth Limited, about why Indian markets continue to remain strong despite global uncertainties. From macroeconomic stability to market valuations and smart fund strategies, Chirag breaks down what investors need to know in 2025, and how to position their portfolios for long-term growth. Excerpts: ADVERTISEMENT Q. Let's begin with the current sentiment in Indian markets. Despite global uncertainties, Indian equities continue to show resilience. What are the key factors driving this strength? Chirag Muni: The Indian market's strength lies in its robust macroeconomic foundation. In the short term, markets may react to sentiment, but over the long run, they're driven by economic fundamentals, and here, India stands out. We closed last year with a GDP growth of 6.5%, and for this year we're expecting around 6.6%. That keeps India among the fastest-growing major economies globally. Inflation has also cooled—CPI dropped to 2.82% in May from 3.16% in April, giving the RBI room to cut rates by nearly 100 basis points this year. That's good news for corporate margins and consumption. Fiscal data is equally strong. The fiscal deficit has been revised to 4.8%, and the RBI's ₹2.7 lakh crore dividend to the government helps strengthen our balance sheet further. GST collections in May crossed ₹2 lakh crore, a 16.5% YoY rise, and direct tax collections have gone up 14.5% in the first two months. All indicators are pointing toward solid economic momentum. Q. That sounds like a strong foundation. How are Indian market valuations positioned right now? Chirag: We're fairly valued with room for upside. The Nifty currently trades around 25,000. Historically, the one-year forward average PE has been around 20x. Even conservatively assuming 20–20.5x on forward EPS, Nifty should be close to 26,000. So we're looking at a 4–5% 'valuation gap' or negative froth—both in largecap and midcap spaces. Our one-year return estimate for Nifty is 11–13%, in line with nominal GDP. Midcaps and large & midcaps could deliver 18–20%. ADVERTISEMENT Q. Given these fundamentals, how should investors position their portfolios right now? Chirag: This is a great time to stay disciplined and invest with a long-term view. Maintain 70–80% equity allocation if your horizon is 4–5 years. ADVERTISEMENT Keep 20–30% in debt for your SIPs—don't let short-term noise distract you. ADVERTISEMENT Diversify:50–55% in largecaps, ADVERTISEMENT Balance between mid and remains the best-performing asset class over the long term. Stick to your asset allocation and review it regularly. Q. Could you suggest specific mutual funds for those looking to invest across categories? Chirag: Absolutely. Here's a diversified mix that has historically delivered strong risk-adjusted returns: Multicap: Canara Robeco Multicap FundFlexicap: HDFC Flexicap FundLarge & Midcap: SBI Large & Midcap FundMidcap: Kotak Emerging Equity FundSmallcap: Invesco Smallcap FundThese funds offer good diversification and can be bundled into a balanced, long-term Please note that these are not recommendations. Mutual Fund investments are subject to market risks, read all scheme related documents carefully. (You can now subscribe to our ETMarkets WhatsApp channel)
Time of India
23-06-2025
- Business
- Time of India
International mutual funds offer 14% average return in 1 year. Are global markets the new hotspot?
International mutual funds have delivered an average return of 14.5% over the past year, ranking second among all fund categories. Market experts attribute this performance to a strong rally in U.S. tech stocks, a rebound in Chinese equities, and improved investor sentiment across European markets. 'A softer dollar, easing inflation, and a global shift toward rate cuts—already initiated by some central banks—have supported risk assets. While some volatility may persist, the broader orientation is supportive, making this a good time to start SIPs/STPs rather than wait for a better entry,' Sagar Shinde, VP of Research at Fisdom, shared with ETMutualFunds. Also Read | Explained: How thoughtful asset allocation enhances mutual fund performance? Best MF to invest Looking for the best mutual funds to invest? Here are our recommendations. View Details » Another expert, comparing the returns of international mutual funds with the Nifty50 over the past year and month, noted that these returns are significantly influenced by global geopolitical events, such as Trump-era tariffs, speculation around the upcoming U.S. elections, and shifting trade agreements, making international funds more event-driven and volatile. 'Over the long term, Indian markets are much more consistent compared to international funds, which shows that domestic funds have higher return potential with a wide range of categories to pick from,' Chirag Muni, Executive Director, Anand Rathi Wealth Limited, shared with ETMutualFunds. Live Events According to Chirag, if we look at the long-term risk adjusted returns of global markets, the U.S. and Indian markets have shown better efficiency compared to China, Hong Kong and Japan and in recent months, international markets have seen sharp, event-driven rallies like China's stimulus-led surge or U.S. trade-related volatility, but these are often short-lived. There were 66 international funds which have marked their presence in the last year, and out of these, 44 gave double-digit returns, 21 gave single-digit returns, and one gave a negative return. DSP World Gold FoF offered the highest return of 70.47% in the same period. Mirae Asset Hang Seng TECH ETF FoF and Mirae Asset NYSE FANG+ETF FoF gave 52.06% and 41.06% returns, respectively, in the said period. PGIM India Global Equity Opp FoF gave the lowest single-digit return of around 0.07% in the mentioned period. Mirae Asset Global Electric & Autonomous Vehicles Equity Passive FOF lost 1.70% in the same period. After reviewing the performance of international funds, Shinde suggests a 10–15% allocation for optimal diversification. He recommends keeping the U.S. as the core exposure, citing its innovation and strong earnings, while viewing China as a tactical or contrarian bet due to its low valuations and recent policy support. Also Read | Up 29% in 5 months! Should you invest or avoid gold mutual funds? 'These funds are best used for long-term allocation (5+ years). SIPs/STPs are more prudent in the current environment, helping average out market and currency volatility better than lump sum investing,' he adds. While refraining investors from investing in international funds and advising to shift focus on a well-diversified mix of domestic equity funds across categories and sectors, Chirag adds that if one looks for global diversification in the portfolio can explore only up to 5 -10% of the overall portfolio. 'International funds can offer exposure to global opportunities, but given its track record for volatility and uneven performance across global markets, investors are advised not to rely heavily on them. It is more suitable to do an SIP in diversified domestic equity funds over the long term, as they provide stronger long-term growth and better risk-adjusted returns. Trying to time global markets or chase short-term rallies is not advisable, as such moves are often driven by unpredictable events and can lead to poor investment outcomes,' Chirag said. Over the last three months, international funds have delivered an average return of 5.61%, and 8.58% over the past six months. DSP World Gold FoF topped the charts across both timeframes. Over the past three years, the best-performing economies included the US, Taiwan, and Nasdaq , while Greater China and some US-focused funds lagged during the same period. Post these funds offering single-digit average return in the short-term, Shinde mentions that the outlook for international funds remains constructive but nuanced and as several central banks—especially in Europe and emerging markets—have already begun their rate-cutting cycles, which supports global liquidity and risk assets. 'At the same time, global equities benefit from resilient growth, improving earnings, and attractive valuations outside the US. However, headwinds like rising trade tensions, tariffs, and geopolitical risks could cause intermittent volatility. Overall, international funds remain a valuable long-term diversification tool, with opportunities across the US, China, and selective global themes,' Shinde adds. While sharing India's strong economic outlook, IMF projections, RBI rate cut, and with a stable fiscal deficit projected at 4.4% for FY26 and strong tax revenues, macro fundamentals remain solid, Chirag advises investors not to go for international funds. Also Read | 14 equity mutual funds offer over 30% CAGR in 3 years. Are there any included in your portfolio? International funds invest across a range of geographies, commodities, and global indices. Markets like the NYSE, NASDAQ, the broader US economy, and Taiwan delivered strong performance, while regions such as Hang Seng and Greater China underperformed. Ultimately, a fund's returns hinge on the specific geography it's exposed to. That means you should pay extra attention to your investments in international funds. Pay extra attention to which geography or indices you are investing in. ( Disclaimer : Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times) If you have any mutual fund queries, message on ET Mutual Funds on Facebook/Twitter. We will get it answered by our panel of experts. Do share your questions on ETMFqueries@ alongwith your age, risk profile, and twitter handle.
Economic Times
23-06-2025
- Business
- Economic Times
International mutual funds offer 14% average return in 1 year. Are global markets the new hotspot?
International funds invest across a range of geographies, commodities, and global indices. International mutual funds have delivered an average return of 14.5% over the past year, ranking second among all fund categories. Market experts attribute this performance to a strong rally in U.S. tech stocks, a rebound in Chinese equities, and improved investor sentiment across European markets. 'A softer dollar, easing inflation, and a global shift toward rate cuts—already initiated by some central banks—have supported risk assets. While some volatility may persist, the broader orientation is supportive, making this a good time to start SIPs/STPs rather than wait for a better entry,' Sagar Shinde, VP of Research at Fisdom, shared with ETMutualFunds. Also Read | Explained: How thoughtful asset allocation enhances mutual fund performance? Another expert, comparing the returns of international mutual funds with the Nifty50 over the past year and month, noted that these returns are significantly influenced by global geopolitical events, such as Trump-era tariffs, speculation around the upcoming U.S. elections, and shifting trade agreements, making international funds more event-driven and volatile.'Over the long term, Indian markets are much more consistent compared to international funds, which shows that domestic funds have higher return potential with a wide range of categories to pick from,' Chirag Muni, Executive Director, Anand Rathi Wealth Limited, shared with ETMutualFunds. According to Chirag, if we look at the long-term risk adjusted returns of global markets, the U.S. and Indian markets have shown better efficiency compared to China, Hong Kong and Japan and in recent months, international markets have seen sharp, event-driven rallies like China's stimulus-led surge or U.S. trade-related volatility, but these are often were 66 international funds which have marked their presence in the last year, and out of these, 44 gave double-digit returns, 21 gave single-digit returns, and one gave a negative return. DSP World Gold FoF offered the highest return of 70.47% in the same period. Mirae Asset Hang Seng TECH ETF FoF and Mirae Asset NYSE FANG+ETF FoF gave 52.06% and 41.06% returns, respectively, in the said period. PGIM India Global Equity Opp FoF gave the lowest single-digit return of around 0.07% in the mentioned period. Mirae Asset Global Electric & Autonomous Vehicles Equity Passive FOF lost 1.70% in the same reviewing the performance of international funds, Shinde suggests a 10–15% allocation for optimal diversification. He recommends keeping the U.S. as the core exposure, citing its innovation and strong earnings, while viewing China as a tactical or contrarian bet due to its low valuations and recent policy support. Also Read | Up 29% in 5 months! Should you invest or avoid gold mutual funds? 'These funds are best used for long-term allocation (5+ years). SIPs/STPs are more prudent in the current environment, helping average out market and currency volatility better than lump sum investing,' he refraining investors from investing in international funds and advising to shift focus on a well-diversified mix of domestic equity funds across categories and sectors, Chirag adds that if one looks for global diversification in the portfolio can explore only up to 5 -10% of the overall portfolio.'International funds can offer exposure to global opportunities, but given its track record for volatility and uneven performance across global markets, investors are advised not to rely heavily on them. It is more suitable to do an SIP in diversified domestic equity funds over the long term, as they provide stronger long-term growth and better risk-adjusted returns. Trying to time global markets or chase short-term rallies is not advisable, as such moves are often driven by unpredictable events and can lead to poor investment outcomes,' Chirag the last three months, international funds have delivered an average return of 5.61%, and 8.58% over the past six months. DSP World Gold FoF topped the charts across both timeframes. Over the past three years, the best-performing economies included the US, Taiwan, and Nasdaq, while Greater China and some US-focused funds lagged during the same period. Post these funds offering single-digit average return in the short-term, Shinde mentions that the outlook for international funds remains constructive but nuanced and as several central banks—especially in Europe and emerging markets—have already begun their rate-cutting cycles, which supports global liquidity and risk assets. 'At the same time, global equities benefit from resilient growth, improving earnings, and attractive valuations outside the US. However, headwinds like rising trade tensions, tariffs, and geopolitical risks could cause intermittent volatility. Overall, international funds remain a valuable long-term diversification tool, with opportunities across the US, China, and selective global themes,' Shinde sharing India's strong economic outlook, IMF projections, RBI rate cut, and with a stable fiscal deficit projected at 4.4% for FY26 and strong tax revenues, macro fundamentals remain solid, Chirag advises investors not to go for international funds. Also Read | 14 equity mutual funds offer over 30% CAGR in 3 years. Are there any included in your portfolio? International funds invest across a range of geographies, commodities, and global indices. Markets like the NYSE, NASDAQ, the broader US economy, and Taiwan delivered strong performance, while regions such as Hang Seng and Greater China underperformed. Ultimately, a fund's returns hinge on the specific geography it's exposed means you should pay extra attention to your investments in international funds. Pay extra attention to which geography or indices you are investing in. ( Disclaimer : Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times) If you have any mutual fund queries, message on ET Mutual Funds on Facebook/Twitter. We will get it answered by our panel of experts. Do share your questions on ETMFqueries@ alongwith your age, risk profile, and twitter handle.
Economic Times
05-06-2025
- Business
- Economic Times
Nippon India Taiwan Equity Fund tops return chart with 22% in May. Can the momentum sustain?
Short-term rallies tend to be volatile and unsustainable as they are often event-driven. Nippon India Taiwan Equity Fund emerged as the top performer among all equity funds — including sectoral and thematic — in May, delivering a return of 21.69%. This was out of a universe of approximately 558 funds during the period. Experts attribute this performance to a sharp rally in Taiwanese technology and semiconductor stocks, which benefited from strong global demand for electronics. Also Read | NFO Insight: Nippon Income Plus Arbitrage Active FoF opens. Is it time to add this emerging category to your portfolio? 'Over the past few months, international markets have experienced increased volatility, largely driven by country-specific events. In China, the announcement of a major stimulus package in late September 2024 sparked a sharp market rally. Similarly, in the U.S., post-election speculations, tariff wars, trade deals, etc. ,increased market activity,' Chirag Muni, Executive Director, Anand Rathi Wealth Limited, shared with to Chirag Muni, short-term rallies tend to be volatile and unsustainable as they are often event-driven. Over the long term, Indian markets have outperformed international funds, offering higher return potential and a broader range of investment categories."Indian markets offer easier access to data and are simpler to track, making them more suitable for investors. Given the complexity of global markets, well-diversified domestic funds remain the better choice for investors,' he added. Another expert highlights four key factors influencing a fund's performance: returns relative to the underlying index, currency movements, the performance of the Indian rupee against the U.S. dollar, and the fund manager's value addition. There is a high correlation of Taiwan stocks with the US Nasdaq Composite index as TAIEX's 50–60% weightage is in semiconductors and electronics (e.g., TSMC, Hon Hai), aligning closely with the Nasdaq's tech-heavy composition, he added. 'Both indices are highly sensitive to global chip demand and U.S. tech sentiment, amplifying their correlation. For the month of May, Nasdaq gained 9.56%, which led to accelerated gains in Taiwan-based technology companies in the portfolio,' Atul Shinghal, Founder and CEO, Scripbox, shared with ETMutualFunds. As per the last data available, Nippon India Taiwan Equity Fund had an AUM of Rs 276 crore as on April 30, 2025. Launched in December 2021, the scheme is managed by Kinjal primary investment objective of Nippon India Taiwan Equity Fund is to provide long-term capital appreciation to investors by primarily investing in equity and equity-related securities of companies listed on the recognised stock exchanges of Taiwan, and the secondary objective is to generate consistent returns by investing in debt and money market securities of were around 65 international funds in the mentioned time period, of which 11 offered double-digit returns, 52 offered single-digit returns, and only two gave negative returns. Also Read | Should you consider starting SIP or lumpsum in a momentum index fund right now? Invesco India - Invesco Global Consumer Trends FoF offered the second highest return of around 15.70%, followed by DSP US Flexible Equity FoF and Edelweiss US Technology Equity FOF, which gave 13.90% and 12.09% returns respectively in the double-digit performers, the last five were Nasdaq-based funds, which gave returns ranging from 10.25% to 11.47% in looking at the performance of these international funds, Chirag Muni advises that investors should avoid reacting to short-term trends and instead focus on fundamentals and long-term growth, as over the longer horizon, Indian markets have delivered stronger the other hand, Shinghal believes that the technology sector, as represented by the Nasdaq Composite Index, remains the main driver for the performance of Taiwanese Stocks, and the outlook for the technology sector remains positive in the long run as current and future innovations are either driven or enabled by this sector. In the current calendar year so far, international funds have offered up to 29% return with Edelweiss Europe Dynamic Equity Offshore Fund being the top performer with 29.12% return in 2025 so far. Mirae Asset Hang Seng TECH ETF FoF has given a 20.17% return in the current calendar year so far. In 2025 so far, Nippon India Taiwan Equity Fund has offered a negative return of 3.47%. Shinghal of Scripbox believes that global equities outside the U.S. and India are currently trading at more attractive valuations. Historically, non-U.S. markets have outperformed during periods of U.S. dollar weakness. 'Hence, International Funds (especially Non-US) should get allocation in an Investor's portfolio depending on risk appetite,' he the expert from Anand Rathi Wealth Limited firmly recommends not to invest in international funds, but if one looks for global diversification in the portfolio, can explore only upto 5 -10% of the overall portfolio, however it is important to look at the risk adjusted return potential of the respective country before investing. 'Investors can consider investing across the range of domestic diversified equity funds to get exposure across the range of categories and sectors to generate good alpha and returns in the long term,' Chirag should always consider their risk appetite, investment horizon and goals before making any investment decision. ( Disclaimer : Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times) If you have any mutual fund queries, message on ET Mutual Funds on Facebook/Twitter. We will get it answered by our panel of experts. Do share your questions on ETMFqueries@ alongwith your age, risk profile, and twitter handle
Time of India
20-05-2025
- Business
- Time of India
Is beating the benchmark enough? What the information ratio reveals
In a world increasingly leaning towards passive investing, how can you truly evaluate the value an active fund manager brings to the table? In this exclusive conversation, ET's Neha Vashishth speaks with Chirag Muni, who breaks down the Information Ratio—a lesser-known but powerful metric that goes beyond just returns and looks at how efficiently those returns are generated. Excerpts: by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Roteirizador Pathfind - O planejador de rotas mais completo do mercado Sistema TMS embarcador Saiba Mais Undo Q. Let's start with the basics—what exactly is the Information Ratio? Chirag Muni: The Information Ratio (IR) is a performance metric that measures a fund manager's ability to generate excess returns over a benchmark, adjusted for the volatility of those excess returns. It shows how effectively a manager delivers better risk-adjusted returns compared to the benchmark. A higher IR indicates more consistent and efficient outperformance, while a lower IR suggests the fund is underperforming relative to its benchmark. Live Events Let me give you a comparison: Suppose two large-cap fund managers both deliver a 15% return, beating their 12% benchmark by 3%. Now, if one of them took less risk than the other to achieve this, the Information Ratio will reflect that. The fund manager with the higher Information Ratio would be the preferred choice because he delivered the same return with less risk. This ratio highlights both consistency and efficiency in return generation. Q. How do you see the IR reshaping the way investors assess fund managers, especially in an era of passive investing? Chirag: Great question. There are two aspects here. First, should investors choose active or passive fund management? When we analysed mutual fund performance over the past five years—across categories like large-cap, flexi-cap, multi-cap, contra, etc.—we found that 60% to 100% of active funds beat the Nifty, and around 70% beat their own benchmarks, except in the large-cap category. So yes, if you choose the right fund, active strategies still offer superior excess returns. Passive funds can't outperform the benchmark—they just mirror it. Secondly, within active strategies, the Information Ratio helps you evaluate the quality of excess return. It allows you to choose fund managers who are not only outperforming but doing so with less risk. That's where this metric really becomes relevant. Q. How is Information Ratio different from other ratios? Chirag: Most investors use the Sharpe Ratio, which compares a fund's return to a risk-free rate like a 6.5% government bond, adjusted for volatility. But the Information Ratio compares the fund's return to its own benchmark, not to a risk-free asset. That makes it more relevant for mutual funds, because we're evaluating whether the manager added value over what the benchmark would have given. So, while Sharpe is useful, the Information Ratio gives a truer picture of a fund manager's active performance. Q. What's the ideal time frame to evaluate the Information Ratio? Chirag: Time frame is very important. Looking at short-term data can mislead you due to market noise and volatility. On the other hand, a very long-term period like 10 years might not reflect the current fund strategy or manager, as those could have changed. The ideal period is between three to five years. This allows you to evaluate consistent performance while accounting for a reasonably stable strategy and risk profile. Q. I noticed that multicap and contra funds often show a higher Information Ratio compared to large-cap or mid-cap funds over 3–5 years. Why is that? Chirag: Good observation. It's because of investment flexibility. In large-cap funds, 80% of the money must go to the top 100 stocks, leaving little room for creativity or deviation from the benchmark. That limits the potential to generate alpha or excess return. But in multicap, smallcap, flexicap, or contra funds, fund managers can explore beyond the benchmark and use different strategies. That freedom leads to higher alpha, and therefore, a better Information Ratio. Q. How should investors use Information Ratio in conjunction with other metrics like Alpha, Beta, or Sharpe Ratio when selecting funds? Chirag: You should never rely on any one ratio in isolation. Information Ratio shows how efficiently a fund manager has beaten the benchmark considering the risk taken. Alpha tells you how much excess return the fund generated. Beta indicates how sensitive the fund is to market movements—i.e., how volatile it is compared to the benchmark. Sharpe Ratio assesses return per unit of total risk, compared to a risk-free asset. Sortino Ratio focuses only on downside risk. The right approach is to combine all these and assess a fund from multiple angles—consistency, volatility, downside protection, and benchmark-beating ability. Q. How can one interpret whether an Information Ratio is good or not? Chirag: You don't need to calculate it yourself—it's already available in the fund fact sheets. You can simply compare the Information Ratio of a fund to the category average. For instance, in the focused fund category, ICICI Prudential Focused Fund has an Information Ratio of 0.9, while the category average is 0.07—a clear indication of superior risk-adjusted performance. In the smallcap space, Invesco India Smallcap Fund has a ratio of 0.5, compared to a 0.1 category average. So yes, the more positive the Information Ratio, the better. It means the fund manager is taking less risk for every unit of extra return. Q. What are some limitations of the Information Ratio? Are there risks to over-relying on it? Chirag: Absolutely. It's just one part of the puzzle. Choosing the right fund starts with knowing your market cap allocation, then shortlisting funds that consistently beat benchmarks, and only then applying tools like the Information Ratio. You can't make a decision solely based on this metric. A fund might have a good Information Ratio today but not fit your overall strategy or allocation. So, use it as a filter, not the final decision-maker. Q. Lastly, SEBI is pushing for greater fund disclosures and transparency. Should the Information Ratio be highlighted more prominently in fact sheets? Chirag: Definitely. Fact sheets are already loaded with data, but unless key metrics like the Information Ratio are better communicated and explained, investors won't benefit. If more people understand and look at the Information Ratio, they can hold their advisors accountable and make more informed, risk-conscious decisions. So yes, SEBI should definitely promote awareness and ensure standardized, visible reporting of such metrics.
