Edelweiss Europe Dynamic Equity Off-shore Fund and Invesco India – Invesco Pan European Equity FoF offered 18.01% and 17.91% returns respectively in the mentioned period. Axis Greater China Equity FoF delivered a return of 11.43% in the same period, followed by Edelweiss Gr China Equity Off-Shore Fund which gave 11.38% return in the said period.
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Alibaba Group’s Hong Kong-listed shares have soared 74% in 2025, driven by a combination of strong earnings, renewed government support, and a surging artificial intelligence (AI) race led by China’s own DeepSeek, according to a report by ET.
The report further highlighted that the latest boost came on Thursday, when Alibaba’s stock jumped 8.4% after unveiling its QwQ-32B AI reasoning model—its strongest push yet into the AI space. The model, designed to be more efficient while competing with DeepSeek’s powerful R1, signaled Alibaba’s intent to take on the fast-rising AI startup that has disrupted the global tech landscape since January.
Market participants reacted swiftly, sending China’s tech sector into a rally on Thursday, with the Hang Seng Tech Index jumping 5.4%. Alibaba’s stock hit its highest level since late 2021, the report said.
After years of underperformance, the Hang Seng index has gone up by nearly 20.79% in the current calendar year so far. (Source: ACE MF)
With some other economies offering good returns, an expert recommends that investors in India should maintain a balanced approach, focussing on domestic investments for stability while selectively adding international diversification.
“Given the strong economic fundamentals and growth potential of India, it is an attractive long-term proposition. However, regions like the US, Europe, and Brazil provide their own opportunities for international funds, given the current global market dynamics. Investors should be focussing on asset allocation in line with their risk appetite and time horizon instead of being influenced by short-term volatility,” recommended Rajesh Minocha, a Certified Financial Planner (CFP) and founder of Financial Radiance.
The ongoing trade dispute between the United States and China has intensified, with Beijing threatening a trade war after the most recent tariff increases announced by US President Donald Trump.
The investors are concerned over how they should diversify their mutual fund portfolio amid this geopolitical tension and which economy should they choose now? The expert recommends that one of the primary concerns for investors considering the US – China geopolitical risk environment is investing across countries to reduce concentration risks and several regions such as Europe, Brazil, and the US have demonstrated exceptional performance, and these should be considered viable options.
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“The most practical approach would be allocating across developed markets for stability and emerging markets for growth to navigate unpredictable waters. However, International exposure can be restricted to only 8-10% for the sake of diversification. Focussing and believing in India’s story for this decade would create rich dividends. Otherwise, it should be subjective to each one’s risk-reward appetite and long-term financial goals,” Minocha recommended.
In Budget 2025, the Finance Minister Nirmala Sitharaman announced an increase in the threshold for tax collected at source (TCS) on remittances under RBI’s Liberalized Remittance Scheme (LRS) from Rs 7 lakh to Rs 10 lakh for which mutual fund experts believe that this will reduce the upfront tax burden for investors remitting funds abroad.
According to Minocha, amid the prolonged U.S. – China trade tensions, global fund investors should gauge their allocations carefully and China’s export growth, which has been slower than anticipated, can raise apprehensions, but diversification across regions such as Europe, Brazil, and the United States can also help reduce this risk.
“Investors should focus their attention on the long-term fundamentals instead of short-term volatility and ensure that their portfolios are in sync with their risk tolerance and financial goals. Since there have been no new opportunities for investments in the International Fund of Funds, as the limits have not yet been increased, the current investment options available to the investors are only the Liberalised Remittance Scheme (LRS) route until this relaxation comes through or until any fund has a limited window open for investments after any redemptions,” the expert further recommended.
One should always invest based on their risk appetite, investment horizon, and goals.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
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