Axis Greater China Equity FoF vs Edelweiss Greater China Equity Offshore Fund: Risks, returns and portfolio compared

Indian investors looking to get exposure to the Greater China region through mutual funds can invest in Axis Greater China Equity FoF and Edelweiss Greater China Equity Offshore Fund. Both are fund of funds (FoFs) that invest in overseas mutual funds with exposure to equity markets in China, Hong Kong, and Taiwan.

Among the two, Axis Greater China Equity FoF has an asset under management (AUM) of ₹4,168 crore, while Edelweiss Greater China Equity Offshore Fund manages ₹3,251 crore.

Let's take a closer look at how these two funds have performed over the years and compare their portfolio composition.

Axis vs Edelweiss China Fund: Past performance

A ₹1 lakh lump sum investment in the Axis Greater China Equity FoF made one year ago would have grown to ₹1.41 lakh, while the same investment in the Edelweiss Greater China Equity Offshore Fund would have risen to ₹1.51 lakh.

Over a 5-year period, the same ₹1 lakh investment would have grown to ₹1.26 lakh in the Axis China Fund, whereas it would have increased to ₹1.17 lakh in the Edelweiss Greater China Equity Offshore Fund.

Axis vs Edelweiss China Fund: Portfolio composition

Below is the comparison of the two Chinese funds' portfolio compositions.

Underlying index and markets

Axis Greater China Equity FoF invests mainly in the units of the Schroder International Selection Fund Greater China. The fund has its largest exposure to China at 54.77%, followed by Taiwan at 37.14% and Hong Kong at 8.09%.

Edelweiss Greater China Equity Offshore Fund invests in the units of the JPMorgan Greater China Fund. The fund has allocated 51.20% of its assets to China, 45.18% to Taiwan, and 2.90% to Hong Kong.

Top holdings

The top five holdings of the Axis Greater China Equity FoF are Taiwan Semiconductor Manufacturing (TSMC), Delta Electronics, Alibaba Group Holding, MediaTek, and Tencent Holdings.

The top five holdings of the Edelweiss Greater China Equity Offshore Fund are Taiwan Semiconductor Manufacturing, Tencent Holdings, Alibaba Group Holding, Delta Electronics, and Elite Material.

Sector-wise exposure

In terms of sector allocation, Axis Greater China Equity FoF has its highest exposure to technology (37.27%), followed by consumer cyclical (12.15%) and industrials (11.77%).

Edelweiss Greater China Equity Offshore Fund is more heavily tilted toward information technology (47.40%), with consumer discretionary (16.81%) and financials (11.11%) being its other top sector exposures.

Axis vs Edelweiss China Fund: Key ratios

Both funds are categorised under the very high-risk category. Axis Greater China Equity FoF has a lower standard deviation of 20.14% as compared with 21.18% for Edelweiss, suggesting slightly lower volatility.

Meanwhile, the Edelweiss China Fund has a marginally higher Sharpe ratio of 0.90 compared with 0.85 for Axis, indicating better risk-adjusted returns.

Axis China Fund has a slightly higher Sortino ratio of 1.68 versus 1.66 for Edelweiss, reflecting marginally better downside risk-adjusted performance.

Overall, the comparison shows that both funds offer exposure to the same regional markets but differ in their portfolio positioning and risk-return profile.

Edelweiss Greater China Equity Offshore Fund has delivered slightly higher average returns and marginally better risk-adjusted performance, while the Axis Greater China Equity FoF has experienced lower volatility and has a marginally higher Sortino ratio.

The two funds also differ in their geographic allocations. Edelweiss has a higher exposure to Taiwan compared to the Axis China Fund, while Axis has a higher exposure to Hong Kong.

Disclaimer: This is purely for educational/ informational purposes and should not be taken as any sort of investment advice. Always consult a SEBI-registered advisor before making any investment decisions.