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In the first half of this year, there was a QDII fund, Tianhong The Vietnamese market performed very well, but many investors found out after buying in June I was trapped and it has fallen by 10%. If we can no longer invest in the Vietnamese market, which other Asian countries’ stock markets are worthy of our investment?
India might be a good choice.
predicts that India’s smartphone shipments will reach 170 million units this year, and 100 million units will be sold in the second half of the year, setting a record high in India. We can also notice that India’s economic recovery has been very strong since the epidemic. Since June this year, India has canceled relevant measures for epidemic prevention and control, and consumption growth in the second half of this year should be good.
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Let’s take a look at India’s stock situation in recent years.
We can know from the picture below that overall, the Mumbai Sensex30 index has been rising. Although there have been holes dug in the middle, the time is not long and the amplitude is not too large. The Mumbai Sensex30 index fell from 2007 to 2008, but at this time the world was falling, and by 2010 it had returned to its previous high. Although there was a slight retracement several times, it all reached new highs. One of the deep pits of
was in March last year. Following the four meltdowns in the United States, had a sharp decline, but it came back a few months later. It has been rising since then. When the epidemic was relatively fierce this year, it only stopped briefly and continued to rise. Therefore, generally speaking, the Indian market is good, and it is more suitable to invest money and wait slowly.
The following is an annual chart. Except for declines in 2010 and 2016, the rest of the years have been rising. This year, the Mumbai Sensex30 index has risen by 20.5%; in 2020, it rose by 15.75%; in 2019, it rose by 14.4%; in 2018, the year when our Shanghai and Shenzhen 300 index fell by 25%, it still rose by 5.9%; in 2017 It also increased by 27.9% year-on-year. In the past few years, it has increased by more than 15% on average, which is very stable.
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Currently, there are two A-shares that can be invested in the Indian market. One is the TEDA Manulife India QDII Fund. This fund is an actively managed fund. Its performance in 2019 only increased by about 5%, and in 2020 it only increased by 2.43%. Compared with the above data, this fund has performed better this year. Other years are not so good.
Because it is an actively managed fund, it needs to be familiar with Indian listed companies to do well. I have also said that we should not buy index fund in the A-share market because our index performance is relatively poor. But for overseas markets, we should buy index funds most of the time, so this fund does not meet our requirements.
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Another fund is ICBC India Fund RMB. This fund is a bit like an index fund, but it is not.
This is a FOF fund, in other words, it is a parent fund of index funds that invests in the ETF fund that tracks various indices in India. Unlike other index funds, only 80% of this fund is invested in ETFs, with a low position. Among them, it tracks the CITIC Securities India ETP index. Currently, the index sample funds are mainly ETF funds listed for trading in developed markets such as the United States, Germany, Britain, France, and Switzerland, and track the Indian market. In other words, this fund buys some Indian ETFs traded on other markets. Another thing to note about
is that as a FOF fund, it is double charged. In addition to the 1.6% fund management fee and the 0.2% hosting fee , there is also the 0.6% of the ETF itself, which adds up to 2.4%. The overall fee is relatively high.
Comparing the performance of Mumbai's Sensex30 fund last year with the year before last, the performance of this fund was not good. Mumbai's Sensex30 index was 27.9% in 2017, 5.9% in 2018, 14.4% in 2019, 15.75% in 2020, and 20.5% this year.
As for ICBC's FOF fund, it rose 4.46% in 2019, 5.15% in 2020, and 17.21% this year. Only this year is it closer to the Mumbai Sensex30 index.
After reading these data, you will feel that the Indian market seems worth investing in. However, the two India-linked funds we found in the A-share market do not seem to be ideal. So we have to think carefully about how to find a fund that suits us in the A-share market. Don’t think about , Vietnam, , and markets in India, including , Hong Kong Hang Seng Index, , which have been relatively poor recently. Let’s look back at the structure of A-shares. Is the opportunity suitable for everyone?
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