Last Updated on December 29, 2021 at 6:06 pm
This is a review of SBI International Access ‐ US Equity FoF (fund of fund) currently in its NFO period up to March 15th 2021. It will invest in mutual fund schemes/ETFs
that invest in US markets and will be e benchmarked to S&P 500 Index, after converting it to Indian Rupee.
It will invest (for a start) in an established US-centric fund (the underlying fund) – Amundi Funds – US Pioneer Fund. In this review, we evaluate the performance of this underlying fund.
The last ten years NAV movement (in USD) is hardly inspiring.
The 3,5 and 7-year rolling returns also say the same story: the underlying fund of SBI International Access ‐ US Equity FoF has failed to beat the S&P 500 (USD) consistently. Rolling returns means every possible 3,5 and 7-year investment window over the last ten years NAV history of Amundi Funds – US Pioneer Fund.
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This means the margin of past underperformance will be higher if we factor in the SBI fund’s expenses (notably the regular plan!). Therefore we recommend that investors stay away from SBI International Access ‐ US Equity FoF.
Those who want “US stock exposure” are better off with Motilal Oswal S&P 500 Index Fund (What return can I expect from this?) provided they appreciate the importance of asset allocation and regular rebalancing:
- This is how buying US stocks will affect your portfolio.
- How much US stocks should your portfolio hold?.