The year 2024 has been remarkable for mutual fund investors, with several schemes delivering impressive returns despite market volatility. Among them, Mirae Asset NYSE FANG+ ETF Fund of Fund (FoF) emerged as the standout performer, earning the title of mutual fund scheme of the year 2024 with a staggering return of 88%.Mirae Asset NYSE FANG+ETF FoF is an open-ended fund of fund scheme predominantly investing in Mirae Asset NYSE FANG+ ETF.

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A monthly SIP of Rs 10,000 made at the first day of the current calendar year, the current value of the investment would have been Rs 1.82 lakh now with an XIRR of 111.50%. (Note, the figure of XIRR is large due to the short time span for the calculation).

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The lumpsum investment of Rs 1 lakh made on January 1, 2024 would have been Rs 1.88 lakh now with a CAGR of 88.35%. (Note, the figure of CAGR is large due to the short time span for the calculation).

The assets under management (‘AUM) of the scheme has surged by 34% in 2024 from Rs 1,265.34 crore in January to Rs 1,694 crore in November. (The last available data)Launched in May 2021, the scheme is benchmarked against NYSE FANG + TRI and is managed by Ekta Gala and Vishal Singh. In 2024, the NAV of the scheme went up from Rs 15.2730 on January 2, 2024 to Rs 28.9480 as on December 27, 2024.

According to the scheme information document (SID) of the fund, the scheme is suitable for investors who are seeking to generate long-term capital appreciation/income and want investments predominantly in units of Mirae Asset NYSE FANG+ETF.

The investment objective of the scheme is to provide long-term capital appreciation from a portfolio investing predominantly in units of Mirae Asset NYSE FANG+ ETF. If redeemed within three months from the date of allotment, an exit load of 0.50% is applicable. If redeemed after three months from the date of allotment, the exit load is nil.

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The minimum investment is of Rs 5,000 and in multiples of Re 1 thereafter. The minimum amount for SIP shall be Rs 99 and in multiples of Re 1 thereafter. The scheme allocates 95-100% in units of Mirae Asset NYSE FANG+ ETF and 0-5% in money market instruments / debt securities, instruments and/or units of debt/liquid schemes of domestic mutual funds.

The maximum Total expenses ratio (TER) permissible under Regulation 52 (6) (c) is upto 1%.

After the stellar performance of this scheme, are you willing to make investment in the scheme? An expert recommends that investors should consider this fund only as a satellite component of their overall portfolio and should not be their core strategy.

“The fund has given good returns recently as the technology and services sector stocks internationally have done well, along with the fact that the rupee has also depreciated over the years. Investors should consider this fund only as a satellite component of their overall portfolio and should not be their core strategy. However, please note that new inflows into the fund are currently restricted by SEBI,” recommended Rajesh Minocha, a Certified Financial Planner (CFP) and founder of Financial Radiance.

“The fund is suitable only for those investors with very high-risk tolerance and a long-term view. Investment in any form of this international fund, including this FoF, improves geographical diversification and sector exposure that is otherwise not well represented in India. However, it is usually shadowed by risks like exchange rate fluctuations and geopolitical uncertainties,” he added.

“Mirae Asset NYSE FANG+ ETF FoF, allows Indian investors to invest in global technology giants such as Meta, Amazon, Tesla, Google among others. The NYSE FANG+ Index, with its concentrated exposure tracking, allows this fund to diversify beyond domestic markets and potentially gain from technological growth worldwide and rupee depreciation,” he further added.

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Around 472, equity schemes have marked their presence in the current calendar year. Around four schemes gave over 50% return in 2024. The top two schemes in the list were from the same fund house – Mirae Asset Mutual Fund. After Mirae Asset NYSE FANG+ETF FoF, the next scheme in the list was Mirae Asset S&P 500 Top 50 ETF FoF which gave 66.47% return in 2024.

Motilal Oswal Nasdaq 100 FOF and Motilal Oswal Midcap Fund delivered 57.55% and 55.30% returns respectively. LIC MF Infra Fund and HDFC Pharma and Healthcare Fund offered 48.92% and 48.20% returns respectively in the current calendar year.

The other schemes in the list offered returns ranging between -28.70% to 47.82% in the mentioned period.

We considered all equity mutual funds. We considered regular and growth options. We calculated the performance of these schemes from January 1, 2024 to December 27, 2024.

Note, the above exercise is not a recommendation. The exercise was to find the best performer of the current calendar year. One should not make investment or redemption decisions based on the above exercise. One should always consider risk appetite, investment horizon, and goals before making any investment decisions.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)

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