Thank you for your kind words. I plan to add more value to the community via Twitter in coming months.
I looked at Axis Greater China FoF and here are my thoughts.
On the face of it, it looks great as expense ratio is only 0.35%. But with choosing Fund of Funds (FoF) you have to look at what is the underlying fund Axis is investing in. Cause with a Fund of Funds, Axis isn’t doing anything but just taking money from you and feeding into another fund that ultimately does all the investing and makes all investment decisions.
So very important to check the underlying fund and esp. important to check what holdings does the underlying fund have, track record of the fund house and fund manager and the investment objectives and factsheet for the underlying fund.
In Axis’s case, the underlying fund is Schroder ISF Greater China Fund.
Here are the top 10 holdings of the fund
Now looking at this top 10 holdings (ideally I want to look at all holdings, but couldn’t find it) I can decide if investing in the fund makes sense.
For me, I find Edelweiss China Fund to have better holdings. They invest into a fund operated by JP Morgan and the fund holdings are mentioned in the post above. Top 50% of their holdings include several Tech firms, Biologics names and renewable names like Xinyi and Longi. JP Morgan is also a better fund house than Schroder.
Edelweiss has a higher expense ratio though of 1.43% and I think its cause they are investing into a better managed fund by JP, which must be charging them a higher % of expense ratio and they are simply passing that onto us.
Edelweiss also has a bigger AUM base of 1491cr compared to Axis’s 59cr.
Higher AUM is important as if the AUM is too small, you have risks of fund being winded up and then you will have to reinvest your money. Larger AUM helps a fund house keep investing and doesn’t run into the risk of too many redemptions at once.
So keeping all of the above combined, I opted for Edelweiss.
My last advice to you would be to not invest 5% of your portfolio in one shot. Divide that over 24 months and SIP into the fund. China is going through a lot of regulatory changes at the moment and thats the reason their markets are cheap compared to US or India. China as a region will grow in the next 20-30 years so, it doesn’t matter which fund you invest via and gain exposure as long as you keep the above risks into account of fund house and fund size.
Hope this helps.