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Old 21st July 2012, 01:22 AM
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Default Mirae Asset China Advantage Fund



I have a few questions re: Mirae Asset China Advantage fund, of Fund of Funds in general and the interplay of currencies.

98.80% of the AUM of the China Advantage Fund is invested in Mirae Asset China Sector Leader Equity Fund. Source

In the last 1 year, USD-denominated units of the Leader Equity Fund went down 32%.

During the same period, the China Advantage Fund went down only 6.7%. This, despite the 20% depreciation of the rupee and a 1% appreciation of the Chinese yuan.

How to interpret this?
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Old 24th July 2012, 03:03 PM
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The 1-year return give by Mirae Asset China Sector Leader Equity Fund is -24.96% and not -32%.

See the "trailing returns" graph on the right.

Mirae Asset China Sector Leader C: MUTF:MCLCX quotes & news - Google Finance

Don't look at the price chart. The price chart does not include dividend paid by the fund.

Rupee depreciation increases rupee value of dollar-denominated securities.

Thus the rupee NAV has fallen much less than the dollar NAV.
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Old 29th August 2012, 06:54 PM
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Thanks Alchemist; I must have missed this post earlier.

So, is everything in order then? If we want to ride on China's recovery, is this Advantage Fund a good one to bet on?
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Old 29th August 2012, 11:07 PM
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Quote:
Originally Posted by vaduvur View Post
So, is everything in order then? If we want to ride on China's recovery, is this Advantage Fund a good one to bet on?
If you believe China will recover then yes.

You can also opt for Goldman Sachs Hang Seng ETF:

NSE - National Stock Exchange of India Ltd.

Is there any other option for Indian investors who want to invest in China?
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Old 30th August 2012, 01:52 AM
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Originally Posted by Alchemist View Post
If you believe China will recover then yes.

Is there any other option for Indian investors who want to invest in China?
It has to, at some point. Bentleys and wine swell China inventory overhang - Economic Times

Not sure how BRICSMART is playing out but Mirae Asset India China Consumption Fund is a balanced alternative, investing ~ 35% of the corpus in Chinese equities.

Last edited by vaduvur : 30th August 2012 at 01:58 AM.
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