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State of the Europe funds

Indian Mutual funds investing in Europe are down 7-10%. Click here for live updates on the Brexit Impact

State of the Europe funds

Indian investors can invest in European markets with ease. Four such funds together have combined assets of ₹175 crores. With the Brexit surprise on Friday these funds fell freely - down anywhere between 7 and 10%. The fall in the equities and currencies across the UK and Europe took its toll. And the fall continues with uncertainty about when and how Brexit will be operationalised. Talk about the beginning of the end of European Union and a Brexit triggered recession in the UK is only adding to their woes. Here's an update on the four funds:

  1. Franklin India Feeder - Franklin European Growth Fund
    Brexit Hit
    Day 1: -7.73%
    Day 2: -4.87%
    Launch Date: May 16th, 2014
    Return since launch: -7.88%
    Expense Ratio: 1.85%
    Exit Load: 1% if redeemed within 1095 days

    This feeder fund invests in Franklin European Growth Fund which has about 56% of its corpus in the Eurozone and about 38% in the UK. Top holdings include the drugmarker Sanofi and Imperial Brands (formerly Imperial Tobacco). The fund has a 2 year history during which it has fallen by 7.73% on account of problems in Europe and the subsequent Chinese devaluation. Further falls in NAV are likely with the Brexit fallout.

  2. Invesco India Pan European Equity Fund
    Brexit Hit
    Day 1: -9.65%
    Day 2: -5.29%
    Launch Date: Jan 31st, 2014
    Return since launch: -7.47%
    Expense Ratio: 1.32%
    Exit Load: 1% if redeemed within 365 days

    This fund feeds into Invesco Pan European Equity Fund. 36% of its holdings are in UK equities and 46% are in the Eurozone, with the balance in other European countries which are outside the Eurozone. Top holdings including Novartis and BP. It has lost about 13% in the past one year.

  3. DHFL Pramerica Top Euroland Offshore Fund
    Brexit Hit
    Day 1: -6.78%
    Day 2: -5.34%
    Launch Date: December 10th, 2013
    Return since launch: -7.27%
    Expense Ratio: 2.04%
    Exit Load: 1% if redeemed within 365 days

    This fund feeds into DWS Invest Top Euroland which is managed by the asset management division of Deutsche Bank. The fund invests only 2.5% in the UK with the balance 97.5% going into the Eurozone. Top holdings include Total, SAP and Unilever. The fund has delivered returns of -7.7% over the past one year.

  4. JP Morgan - Europe Dynamic Equity Offshore Fund
    Brexit Hit
    Day 1: -7.22%
    Day 2: -5.28%
    Launch Date: Feb 7th, 2014
    Return since launch: -3.67%
    Expense Ratio: 1.67%
    Exit Load: 1% if redeemed within 365 days

    This fund invests in JP Morgan Europe Dynamic Fund. It places 48% of its money in the Eurozone, 26% in the UK and the balance mostly in the parts of Europe lying outside the Eurozone. It has delivered a one year return of -13.75% and its current NAV is close to an all-time bottom. Nestle, Roche and Royal Dutch Shell are its top holdings.