A DSP BlackRock dollar-denominated equity fund has returned over 40 per cent to Indian high net worth investors, among the best during 2013.
Ajit Menon, Excutive Vice-President of the fund house, told Business Line that DSP BlackRock US Flexible Equity Fund, which had assets under management of just Rs 132 crore, gave a return 41.6 per cent in the past one year.
Another dollar-denominated fund – DSP BlackRock World Agricultural Fund – returned 14 per cent during the past year. “Our gold fund (DSP BlackRock World Gold Fund), however, had a negative return last year,” Menon said.
Mutual fund houses had rolled out a number of such products in India in recent years to reap the benefit of the weak rupee versus strong dollar scenario. However, according to Dhirendra Kumar of Value Research, not all dollar-denominated funds produced sparkling performance last year.
“The behaviour of the underlying assets has been the key. Currency fluctuations heightened the performance of the assets further.
For example, a dollar-denominated Mexican equity fund was no match for the return delivered by the funds focused on US equities,” he said.
Franklin Templeton US Opportunity Fund gave a blockbuster return of 55.24 per cent last year, he pointed out. It has AUM of about Rs 502 crore.
ICICI Prudential Export and Other Services Fund was among the top domestic fund performances. The fund (AUM Rs 191 crore) produced a return of 43 per cent during the last calendar year.