Performance Appraisal of Overseas Fund of Funds Operating in India

Dr. S. Poornima () and R. K. Sudhamati ()
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Dr. S. Poornima: Associate Professor, Department of Business Management, PSGR Krishnammal College for Women, Coimbatore
R. K. Sudhamati: Research Scholar, Department of Business Management, PSGR Krishnammal College for Women, Coimbatore

Journal of Commerce and Trade, 2012, vol. 7, issue 2, 39-46

Abstract: Mutual fund industry has given a wide array of investment products to the investors. Overseas fund of funds is one such an investment product which provides greater diversification opportunity to the investors.It is recent innovation by Indian Mutual Fund Industry. There are 23 numbers of overseas mutual fund operating in India, out of which 9 were selected for the study. Criteria for the selection of funds for the study are the fund should be in existence at least for 3 years. Investment performance, risk and stock selection ability of the overseas fund of funds mutual fund managers were analyzed. The empirical results indicated success of many schemes selected. Out of 9 overseas funds selected for the study, 3 funds namely ING Global real estate fund- Institutional, ING Gloal real estate fund- Retail, ING Latin America equity fund are excellent when compared to market (S&P CNX Nifty). Risk adjusted performance measure based on Sharpe and Treynor shows that ING Global real estate fund- Institutional, ING Gloal real estate fund- Retail and DWS Global Thematic off-Shore fund are the best performers. Risk analysis based on beta value of overseas fund of funds indicates that all the funds are less risky than the market. The analysis also reveals that ING Global real estate fund- Institutional, ING Global real estate fund- Retail and DWS Global Thematic Off Shore fund reports superior stock selection ability among all other funds. And also none of the funds have reported negative performance when compared to risk-free rate to return.

Keywords: Overseas fund of funds; Risk adjusted performance measure; Beta; Diversification; Net Asset Value (search for similar items in EconPapers)
JEL-codes: G24 (search for similar items in EconPapers)
Date: 2012
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