The Mirae Asset NYSE FANG+ ETF Fund of Funds (FoF) has delivered a 44.1% three-year CAGR, outperforming other large overseas mutual funds. While it leads over the long term, investors should note that performance leaders often change across different time horizons, such as the one-year period where other funds have seen higher gains.
Detailed Coverage
The Mirae Asset NYSE FANG+ ETF Fund of Funds (FoF) has emerged as the top performer in the overseas mutual fund category for the three-year period ending in mid-2026. According to data from ACE MF, the fund achieved a compound annual growth rate (CAGR) of 44.1%. This performance notably surpassed its benchmark return of 16.8% by over 27 percentage points.
In this category of funds with at least Rs 1,500 crore in assets under management (AUM), the Motilal Oswal Nasdaq 100 FOF and the Kotak US Equity Passive FOF follow with three-year returns of 36.8% and 29.7%, respectively. The Motilal Oswal fund holds the largest corpus among the top-performing schemes, with an AUM of Rs 8,267.2 crore.
Performance Varies by Time Horizon
While the Mirae Asset fund shows strong results over three years, performance rankings change significantly when observing different time frames. For instance, in the one-year period, the Motilal Oswal Nasdaq 100 FOF has outperformed, delivering a 62.1% return compared to the 28.2% return recorded by the Mirae Asset NYSE FANG+ ETF FoF. This illustrates the importance for investors of looking beyond long-term averages when assessing fund performance.
Considerations for International Investing
Investors in overseas fund-of-funds should remain aware of several factors beyond just historical returns. These funds primarily invest in underlying foreign ETFs, meaning their performance is closely linked to the concentration of their holdings. For example, the FANG+ index is highly concentrated in a small group of large-cap technology companies. This high concentration can lead to significant volatility compared to broader indices like the Nasdaq 100, which holds a larger number of companies.
Additionally, these funds are subject to currency fluctuations between the Indian Rupee and the US Dollar. A depreciation of the Rupee can sometimes provide a tailwind for returns, while an appreciation could negatively impact the performance of foreign holdings. Investors should also account for the tax treatment of overseas funds, which is different from domestic equity mutual funds in India. Reviewing the underlying index strategy and understanding the volatility associated with concentrated technology portfolios remains essential for anyone tracking these funds.