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Investing in International Mutual Fund Schemes? Check Out Their Favourite Stocks!

by 5paisa Research Team 07/09/2021

Indian stock market indices are trading at an all-time high and analysts have been apprehensive about how much steam is still left given the tepid recovery in the domestic economy. One way for local investors to diversify risk is to look to spread the bets with some allocation to foreign companies. One of the routes of doing so is via international mutual fund schemes.

While some fund managers handling flexi-cap (previously multi-cap) schemes have benefited from selectively making offshore investments, a more direct hedge for investors looking to derisk their exposure in India is to pick funds that solely invest overseas.

Fund of Fund or Active Mutual Funds – Which Has Done Better?

There are two typical sets of such mutual funds with one group largely tracking a foreign index as an exchange-traded find (ETF) or basically act as a fund of funds. Interestingly, these funds appear on top of the table if one stacks all international funds based on their three- and five-year returns.

Top 4 International Mutual Fund Schemes

Of the five international mutual fund schemes that have consistently generated at least 20% returns over a long period, four are those that track some index or invest in an underlying international fund acting as a feeder.

These four are Motilal Oswal Nasdaq 100 ETF, Franklin Feeder Franklin US Opportunities, PGIM India Global Equity Opportunities and Edelweiss Greater China Equity Offshore.

What is interesting is that while two of these four (PGIM and Edelweiss) follow a passive strategy, their expense ratios—or the fees they charge annually for managing the money—is on a par with active fund managers and in the 1-1.5% range. In comparison, typical management fees for passive international funds are in the 0.5-0.7% range.

Meanwhile, the sole outsider in this top-performing group is Nippon India US Equity. The only other international mutual fund that also scored 20%-plus returns in the last three years but marginally fell out from the club over the five-year time horizon is ICICI Prudential US Bluechip Equity.

Sectors, Stocks Where Active Funds Have Bet

Both the funds have the same five sectors topping the list: technology, services, healthcare, financials and FMCG. The only key difference is that Nippon has been overweight on services and healthcare compared to its peers. It has been underweight on FMCG and slightly less bullish in its portfolio construct on technology and financials.

On the other hand, ICICI Prudential US Bluechip has been overweight on healthcare and slightly more bullish on tech and FMCG sectors. It is underweight on financials and services stacks.

Notably, both these top performers have been underweight on consumer durables, which otherwise is among the key sectors for other international fund managers from India.

The common stocks that both these funds own are Alphabet Inc, Microsoft, Facebook and Amazon. These stocks also find a place in the portfolio of Parag Parikh’s flexi cap fund, one of the top performers in the flexi-cap group.

Nippon’s international fund has a total of around two dozen stocks. But it has a more concentrated portfolio with the top five stocks representing a third of the total basket. 

The Nippon fund also has Netflix in its portfolio. Netflix, along with Facebook, Amazon, Apple and Google parent Alphabet are the famous ‘FAANG’ stocks that have led the technology pack in the last few years.

These apart, Nippon is also bullish on Mastercard, Iqvia, Enbridge and Lowe. 

ICICI Prudential has its eyes set on ServiceNow, Tyler Technologies and Zimmer Biomet, though its wider basket means there is much less to differentiate among the stocks it owns.

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5 BTST Stock Ideas: September 7



5paisa analysts bring the best intraday ideas, short-term ideas and long-term ideas for you. In the morning we provide best momentum stocks to buy or sell, while in the last trading hour we provide buy today sell tomorrow (BTST) ideas.


Here are the 5 buy today sell tomorrow (BTST) ideas for today (September 7)


BTST Idea 1: BUY


Current Market Price (CMP): 2382            
Stop Loss (SL): 2340         

Target Price (TP): 2475    

Holding Period: buy today sell tomorrow



Current Market Price (CMP): 96.2          

Stop Loss (SL): 97.5

Target Price (TP): 94 


BTST Idea 3: BUY

Current Market Price (CMP): 2844

Stop Loss (SL): 2830

Target Price (TP): 2880



Current Market Price (CMP): 769

Stop Loss (SL): 774

Target Price (TP): 755

BTST Idea 5: BUY

Current Market Price (CMP): 422

Stop Loss (SL): 417

Target Price (TP): 434

Next Article

Medical Equipment Firm Healthium Medtech Set to Launch IPO

by 5paisa Research Team 07/09/2021

Medical products and equipment maker Healthium Medtech has joined the rush of companies going public as it filed a draft red herring prospectus with India’s capital markets regulator to raise funds through an initial public offering.

Healthium’s IPO comprises a fresh issue of shares to raise Rs 390 crore and an offer for sale of 3.91 crore shares by selling shareholders. Promoter Quinag Acquisition will sell up to 3.9 crore shares while Mahadevan Narayanamoni will divest up to 1 lakh shares.

Quinag, which is backed by funds advised by private equity firm Apax Partners, holds a 99.79% stake in Healthium. It had acquired Healthium in 2018 from the company’s founders, TPG Growth and other shareholders.

Also Read: Upcoming IPOs List in 2021

Healthium Medtech IPO Details

Healthium Medtech plans to use about Rs 180 crore out of the net proceeds from the fresh issue to invest in subsidiaries Sironix Medical Technologies, Clinisupplies and Quality Needles. 

It also plans to use Rs 50.09 crore to repay its debts, and Rs 58 crore for acquisitions and other strategic initiatives. Rest of the money will be used for general corporate purposes.

Financial performance of Healthium Medtech

Healthium’s revenue from operations has clocked a compound annual growth rate of 10.52% between 2018-19 and 2020-21. It increased revenue from operations and earnings before interest, tax, depreciation and amortisation (EBITDA) by 11.61% and 61% in 2020-21, despite an economic slowdown and the impact of the Covid-19 pandemic.

The company’s net profit jumped to Rs 85.43 crore in 2020-21 from Rs 36.76 crore in 2019-20 and Rs 13.73 crore the year before.

Healthium Medtech Market share

The company makes products used in surgical, post-surgical and chronic care fields. According to a Frost & Sullivan report, one in five surgeries conducted globally uses a Healthium product as of March 2021. 

The company says that it is the largest independent medical device company and the second-largest company overall in India’s surgical consumables market with a share of 7.91% in value terms.

It is also the largest non-captive maker of surgical needles with a 22.3% share in overall volume sales globally and a 45.41% share of the non-captive market.

The company says the global market for products in its focus areas is likely to grow at an annualised pace of about 5% between 2021 and 2025, and is estimated to be $28.75 billion in 2025. 

The size of the market for surgical consumables and arthroscopy products in India is estimated to be $455.84 million in 2021. This market is projected to grow at a CAGR of 9.6% between 2021 and 2025, Healthium says.

Next Article

5 BTST Stock Ideas: September 8



5paisa analysts bring the best intraday ideas, short-term ideas and long-term ideas for you. In the morning we provide best momentum stocks to buy or sell, while in the last trading hour we provide buy today sell tomorrow (BTST) ideas.

Here are the 5 buy today sell tomorrow (BTST) ideas for today (September 8)


BTST Idea 1: BUY


Current Market Price (CMP): 429            
Stop Loss (SL): 425         

Target Price (TP): 440    

BTST Idea 2: BUY


Current Market Price (CMP): 6735          

Stop Loss (SL): 6670

Target Price (TP): 6875 

BTST Idea 3: BUY


Current Market Price (CMP): 3274

Stop Loss (SL): 3262

Target Price (TP): 3300

BTST Idea 4: BUY


Current Market Price (CMP): 243

Stop Loss (SL): 240    

Target Price (TP): 252

BTST Idea 5: BUY


Current Market Price (CMP): 386

Stop Loss (SL): 381

Target Price (TP): 399

Next Article

India1 Payments joins IPO queue, submits DRHP to SEBI


India1 Payments Ltd has filed its draft red herring prospectus with the Securities and Exchange Board of India to launch its initial public offering (IPO), joining a long list of companies going public amid bullish investor sentiment.

The white-label ATM operator aims to raise Rs 150 crore by issuing new shares in the IPO. The public offering also includes an offer for sale of 1.03 crore shares by its promoters and investors, according to the DRHP.

While the Banktech Group will sell 1 lakh shares, Singapore’s BTI Payments will offload up to 25.08 lakh shares. The other selling shareholders are India Advantage Fund S3 I (49.94 lakh shares), India Advantage Fund S4 I 24.86 lakh shares, and Dynamic India Fund S4 US (2.16 lakh equity shares). These three funds are affiliates of ICICI Venture.

The company may also seek to raise Rs 30 crore via a pre-IPO placement of shares.

India1 Payments plans to use the net proceeds from the fresh issue to repay debt, finance tis capital expenditure requirements to setup ATMs in India, and for general corporate purposes.

India1 Payments’ business

India1 Payments, promoted by the Banktech Group, was incorporated in 2006. ICICI Venture invested in the company in 2013.

The Bengaluru-based company is a leading independent non-bank ATM operator in India. As of June 30, 2021, it operated a network of 8,520 ATMs across 14 states and union territories. Its brands these as “india1ATM”.

The company business is focused on semi-urban and rural areas where it has set up 7,619 ATMs, or nearly 90% of the total. It reached the milestone of operating 9,000 ATMs in August 2021, according to the DRHP.

In the six months ended June 30, 2021, the company processed an average of 24 million transactions per month on its ATM network.

India1 Payments’ financial performance

The company’s revenue from operations jumped to Rs 317.6 crore for the year through March 2021 from Rs 256 crore for 2019-20 and Rs 229.3 crore the year before.

The company eked out a profit before tax of Rs 2.16 crore for 2020-21, compared with a loss of Rs 8.6 crore and Rs 29.3 crore for the two previous years.

It also swung to a profit after tax of Rs 3.3 crore for 2020-21 from a loss of Rs 5.86 crore the year before, thanks to a tax writeback.

JM Financial, Edelweiss Financial Services and IIFL Securities are the merchant bankers managing the IPO.

Next Article

IRCTC takes off from train tracks to skies. What should investors do?


Indian Railways gave up on steam engines a long time ago but a company it spawned as an enabler for its humongous captive ticketing requirement has recorded a ten-fold jump in its value in the last two years.

Indian Railway Catering and Tourism Corporation (IRCTC) has emerged as arguably the best-performing PSU stock in recent years and a play on business interest beyond its core e-ticketing operations.

IRCTC has grabbed investors’ interest looking at a sharp revival in rail movement as the fast-accelerating vaccination programme in the country has arrested the arrival of the ‘third wave’ of the Covid-19 pandemic. The company now commands a market capitalisation of over $7 billion and is among the top 100 companies by valuation.

The company’s stock price is currently trading around Rs 3,300 apiece, more than 10 times the level at which it went public in 2019. It is reacting to multiple triggers, including a stock split that would add to liquidity in the stock, an expected surge in rail travel as pandemic concerns recede and its non-ticketing businesses that have become equally attractive.

IRCTC’s performance

In a report last month, IIFL Securities noted that IRCTC’s first-quarter performance was resilient and it remained profitable despite the 28% quarter-on-quarter revenue decline due to the lockdowns.

IRCTC management have said that ticketing volumes are now 30% above pre-Covid levels aided by movement from unreserved to second-class sitting segment of railways.

IIFL Securities said last month the stock was fairly valued at Rs 2,630 levels. It raised its earnings per share (EPS) estimate for 2021-22 by 46% on faster recovery from Covid-19 secondwave but maintained FY23 EPS. “We estimate 23% EPS CAGR over FY20-23 driven by healthy ticketing volumes and higher packaged drinking water capacity,” it said.

According to Jinesh Joshi of PrabhudasLiladhar, IRCTC is likely to surpass its pre-Covid bookings in 2021-22 due to an improvement in its ticketing business.“Earnings optionality arising from railway privatization and non-convenience income act as additional levers,” Joshi said.

IRCTC stock outlook

The heady valuations—thecompany is trading close to 177 times its trailing net profit—putsit in a sensitive zone. However, several analysts expect even more action in the counter. Some even expect it to rise another 50% by March-September 2023.

Sumeet Bagadia of Choice Broking said the stock has given fresh breakout at Rs 3,000 levels. “One can buy this Indian Railways’ PSU counter for immediate to short-term target of Rs 3,200 to Rs 3,400. However, one must maintain stop loss at Rs 2,800 while taking this position in IRCTC shares.”

Santosh Meena of Swastika Investmart says the stock has crossed the psychological level of Rs 3,000 and the correction due to Covid-19 was a great opportunity for portfolio investors to latch onto it.

“The reopening theme is getting momentum whereas it has a tailwind of stock split news. The railways’ asset monetization plan is another trigger for its re-rating. The bullish momentum may continue while Rs 3,070 to Rs 3,100 is an immediate resistance zone; above this, it is likely to head towards the Rs 3,300 level.”

Meena also said that if the stock witnesses any profit booking from the Rs 3,070-3,100 resistance zone, then Rs 2,775-2,700 will be a good buying zone.

Ravi Singhal of GCL Securities says the stock can move to Rs 5,000 in 18-24 months, and attributes the price rally to the company's aggressive focus on its hospitality business.

Singhal says the market feels that IRCTC is trying to emerge as an end-to-end solution provider in the hospitality business as it has been joining hands with aviation and surface transport service providers as well as hotels.

“It is also aggressively focusing on its food-supply business by inking deals with local food-chain players. So, IRCTC is no more going to remain just an e-ticket platform,” Singhal said.