I was getting sceptical on my decision to accumulate at dips in “Edelweiss Greater China Equity Off-shore Fund” and analysing the charts of “Schroder ISF Greater China”
Your article brings reinforcement to my belief that China economy will do better and will get good returns.
Very concise write up. Thank you. Though I have one niggling doubt. You seem to be convinced that there is no structural change in the economy. As we keep reading Xi seems to be averse to the disproportionate inequality in society. So similar to the EdTech changes , how can we be sure there will be no fundamental structural changes to redistribute the wealth?
Hey, Tar! Thank you for a wonderfully informative and comprehensive article.
I had one small query, though: you mentioned that you have some amount of your portfolio in the Edelweiss Greater China Equity Off-shore Fund, which - being a fund of fund - includes the expense ratio of both, the underlying fund and this fund (1.43% currently, pretty high compared to other Indian equity funds). Moreover, it's taxed as a debt fund, so the long term capital gains would be 20% (of course, along with indexation benefit).
Based on these parameters, do you think that the fund can be justified well enough to compensate for these deductions, or would you believe that the returns from the Chinese index would be well above the Indian markets in the upcoming few years?
Also the Edelweiss GCOF has corrected just 20% from the top, unlike the China Dragon Index or the China Internet Fund which have corrected more than 50%. If tje hypothesis is that this is not structural, then surely these would offer better value?
Thank you for all the efforts to put up the article and your view point together.
I did read the 5 year plan article you shared and also read additional material (link below). I have slightly different view and would love to know your thoughts.
1. In the 5 year plan, I couldnt find any reference to China's intent to increase working urban population. The plan includes reducing urban-rural divide. The plan does talk about making education more accessible but does not mention reducing cost of education to achieve it. Could you please comment?
2. There may be different reasons for lukewarm response to repealing one child policy. Do you think cost of raising a child is most important out of those reasons? It must take lot resources (time, money, effort) to look after an ailing parent. Could lack of resources be a reason for people not opting for second child? If so, government's policy against EdTech firms may have a different rationale.
Hi, great insightful artice. What are your view on Nippon India Hang Seng Bees ETF as an alternative to Edelweiss GC Equity fund. As you have mentioned in the article, education companies are not in Edelweiss GC portfolio but are present in Hang Seng index, how much different that could make? Also China's Evergrande have defaulted, how can this affect
What are your thoughts on going for an internet focused fund instead, like a Kraneshare China Internet Fund in the US? The cuts are deeper and NAVs are rock bottom cheap. It is slightly more concentrated too.
I was getting sceptical on my decision to accumulate at dips in “Edelweiss Greater China Equity Off-shore Fund” and analysing the charts of “Schroder ISF Greater China”
Your article brings reinforcement to my belief that China economy will do better and will get good returns.
Very concise write up. Thank you. Though I have one niggling doubt. You seem to be convinced that there is no structural change in the economy. As we keep reading Xi seems to be averse to the disproportionate inequality in society. So similar to the EdTech changes , how can we be sure there will be no fundamental structural changes to redistribute the wealth?
Hey, Tar! Thank you for a wonderfully informative and comprehensive article.
I had one small query, though: you mentioned that you have some amount of your portfolio in the Edelweiss Greater China Equity Off-shore Fund, which - being a fund of fund - includes the expense ratio of both, the underlying fund and this fund (1.43% currently, pretty high compared to other Indian equity funds). Moreover, it's taxed as a debt fund, so the long term capital gains would be 20% (of course, along with indexation benefit).
Based on these parameters, do you think that the fund can be justified well enough to compensate for these deductions, or would you believe that the returns from the Chinese index would be well above the Indian markets in the upcoming few years?
A great fan of your work!! The next target of dragon would be healthcare and real estate. what do you think... will global investors shift to India??
Also the Edelweiss GCOF has corrected just 20% from the top, unlike the China Dragon Index or the China Internet Fund which have corrected more than 50%. If tje hypothesis is that this is not structural, then surely these would offer better value?
Excellent article. Personally I researched on Edelweiss Greater China Offshore Fund and started SIP after going through you article.
Hi Tar,
Thank you for all the efforts to put up the article and your view point together.
I did read the 5 year plan article you shared and also read additional material (link below). I have slightly different view and would love to know your thoughts.
1. In the 5 year plan, I couldnt find any reference to China's intent to increase working urban population. The plan includes reducing urban-rural divide. The plan does talk about making education more accessible but does not mention reducing cost of education to achieve it. Could you please comment?
2. There may be different reasons for lukewarm response to repealing one child policy. Do you think cost of raising a child is most important out of those reasons? It must take lot resources (time, money, effort) to look after an ailing parent. Could lack of resources be a reason for people not opting for second child? If so, government's policy against EdTech firms may have a different rationale.
What do you think?
PS: I am not well read about the subject yet.
Hi, great insightful artice. What are your view on Nippon India Hang Seng Bees ETF as an alternative to Edelweiss GC Equity fund. As you have mentioned in the article, education companies are not in Edelweiss GC portfolio but are present in Hang Seng index, how much different that could make? Also China's Evergrande have defaulted, how can this affect
Thanks for the perspective Tar.
What are your thoughts on going for an internet focused fund instead, like a Kraneshare China Internet Fund in the US? The cuts are deeper and NAVs are rock bottom cheap. It is slightly more concentrated too.