Interactive Investor

Nine in 10 of best-performing funds in August invest in this region

1st September 2021 14:08

Tom Bailey from interactive investor

This country’s index hit a record high in August, which in turn boosted returns for active funds. 

Stock markets around the world generally performed well in August, with most major indices edging higher. This fed into the performance of open-ended equity funds, with many posting positive returns for the month.

However, in terms of the best performing, one region dominated: India. Of the 10 best-performing funds in August, nine had an exclusive focus on India. The best performing was Aberdeen Standard Indian Equity, with a return of 11.2%. 

Indian equities saw strong returns in August. Indeed, it was the best month so far this year for India’s S&P BSE SENSEX, which finished at an all-time record high.

Ben Yearsley, director of Shore Financial Planning, notes: “There doesn’t seem to be any specific catalyst for India’s strength apart from a resilient economy in the face of the Delta Covid variant (which now seems under control). Inflation is under control there and by most accounts the monsoon season has been good as well.”

While India dominated the best-performing list, six of the 10 worst-performing funds had an explicit focus on gold and other precious metals. MFM Junior Gold was the third worst-performing fund, with a loss of 9.1%. 

Yearsley notes that the reason behind this poor performance is not straightforward. Despite the poor performance of funds with heavy gold exposure, the price of gold did not do very much in August.

He notes: “As the gold price didn’t move in August, there was no real catalyst for the negativity. There was an element of stocks trading ex-dividend (with some very chunky payouts), a slightly stronger dollar, and also the pick-up in bond yields, but overall, there was no big news to affect gold shares.”

The two worst performers were 7IM Income Portfolio and 7IM Absolute Return Portfolio, both of which remain suspended due to liquidity concerns.

Top 10 fund performers in August


Return (%)

Aberdeen Standard Indian Equity


SJP Emerging Markets Equity


Invesco India Equity


JPM India


UTI India Dynamic Equity


Schroder India Equity


Fidelity India Focus


Matthews India


Schroder ISF Indian Equity


Stewart Investors Indian Subcontinent


Source: FE Analytics. Data from 31 July 2021 to 31 August 2021.


Bottom 10 performing funds in August


Return (%)

7IM Income Portfolio


7IM Absolute Return Portfolio


MFM Junior Gold


Sanlam Gold & Resources


Charteris Gold and Precious Metals


Jupiter Gold & Silver


Baker Steel Gold & Precious Metals


Blackrock GF World Mining


Ninety One Global Gold


Quilter Precious Metals Equity



Source: FE Analytics. Data from 31 July 2021 to 31 August 2021.

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