Local mutual funds’ global bets disappoint on returns charts

International schemes of domestic mutual funds mostly held stocks of global companies that have been underperformers. Cognizant, Alphabet, Facebook and Suzuki Motors have attracted half of the Rs 2,700 crore that international funds run by Indian mutual funds have invested abroad but these four stocks have declined between 7 per cent and 20 per cent in the last one year. About 27 per cent, or Rs 729 crore, of this exposure is in global IT giant Cognizant.

Mutual funds such as Aditya Birla, Franklin Templeton, ICICI Prudential, IDFC, Motilal Oswal and SBI own Cognizant, show data compiled by Prime Database. Alphabet (Google) and Facebook have declined 7 per cent each in the last one year while Suzuki Motor Corp fell 18 per cent during this period. The rest of the corpus was spread across 340 companies. Funds held 2.38 per cent and 1.27 per cent in Nestle and Microsoft, the outperformers in the last one year. These two stocks rallied 36 per cent and 33 per cent, respectively. About 1 per cent of the funds were invested in Apple.

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