International mutual fund schemes investing in the US stocks have taken a hit of upto 4% in their single day NAV as on September 4 after a wild day on the Wall Street. The Nasdaq Composite tumbled nearly 5% and the Dow fell more than 800 points in one day. Franklin India Feeder Franklin US Opportunities Fund has fallen by 4% in one day, followed by Nippon India US Equity Opportunities Fund. Nippon’s fund has gone down by 2.6%. Wall Street’s main indexes tumbled on Thursday, heading for their worst day since June as investors dumped high-flying technology-focused stocks.
Top holdings of the above mentioned schemes are –Facebook, Amazon, Google, Microsoft and the likes. The FAANG stocks— Facebook, Apple, Amazon.com, Netflix and Alphabet sank between 4.6% and 6.2% in one day. The NYSE FANG+TM Index, which includes the five core FAANG stocks, shed 6.2%. The fall was registered as the biggest one-day decline since March 16.
Franklin India Feeder Franklin US Opportunities Fund has given 19.5% returns since launch. The scheme was launched in February 2012. Nippon India US Equity Opportunities Fund has given over 14% returns since its launch in July 2015.
International funds investing mainly in the US stocks made extraordinary returns for the investors in the last few months. After a considerable fall in the one-day NAV, the Franklin India Feeder Franklin US Opportunities Fund is up 33% year-to-date, 39% up in the last one year and 18% in the last five years, shows the data from Value Research.
Nippon India US Equity Opportunities Fund has given close to 15% returns year-to-date. I the last one year, the scheme has grown by 24% and by 16% in the last five years.
Mutual fund experts advise a minimum investment horizon of five to seven years for international funds. These are risky thematic funds and only those who have the desired risk appetite may invest.