A review of performance for various asset classes for the year 2014 by USA Today, states that equity mutual funds and stocks have performed exceptionally well. Overall, India equity funds have gained 47.1%. Numerous ETFs focusing on the country have also been up considerably on optimism surrounding the election victory of Prime Minister Narendra Modi, who is expected to push for reforms in the emerging economy. India’s benchmark stock index, the S&P BSE Sensex, was up 33%.
The top-performing mutual fund for 2014 was Matthews India Fund, which gained more than 66% in the year. The fund’s expense ratio of 1.03% was relatively low when compared to other top-performing funds for the year, and it had slightly more than $1 billion in assets.
As with mutual funds, India-focused exchange traded funds dominated the list of best performing ETFs. Specifically, investors in India’s small cap stocks have fared best, with the iShares MSCI India Small-Cap ETF up almost 60%. EGShares India Small Cap ETF and the Market Vectors India Small-Cap ETF also fared well in 2014.