Jupiter India in freefall

FDa65rdk

Hello

Can anyone explain what factors may be causing the Jupiter India fund to be dropping like a stone right now?

Thanks

aroominyork

India small caps falling out of favour. Same as has happened since January to India Capital Growth IT. Large caps have been OK.

cashbackproblems

its fine it will recover, im adding more into mine as prices fall

aroominyork

cashbackproblems wrote: »

its fine it will recover, im adding more into mine as prices fall

For “will” read “may”. Also note lack of timeline.

MK62

A lot of it is exchange rate.....the Rupee has fallen about 8% vs Sterling in the last month or so.....add on top the c6% underlying drop in value of Indian shares due to concerns over the economy (oil price, emerging market exposure to trade war fears etc).....

This is the downside of being invested in overseas assets.....great when Sterling takes a pummelling (ie Brexit)....not so great when the shoe shifts to the other foot.

A_T

It's a niche investment - unwise IMO to put too much in India. Yes it's a huge economy but very little is investable for foreigners and the country is riddled with corruption.

aroominyork

MK62 wrote: »

A lot of it is exchange rate.....the Rupee has fallen about 8% vs Sterling in the last month or so.....add on top the c6% underlying drop in value of Indian shares due to concerns over the economy (oil price, emerging market exposure to trade war fears etc)

The exchange rate was pretty stable in the first half of 2018 but there was a noticeable outperformance of large caps over small/mid caps.

zagfles

Mine are currently showing up 89% on my online account! I'm not worried. Mostly bought them 5-6 years ago.

MK62

aroominyork wrote: »

The exchange rate was pretty stable in the first half of 2018 but there was a noticeable outperformance of large caps over small/mid caps.

I'm not disagreeing with you, just pointing out that over half of the fund's drop in the last month or so is due to the collapse in the value of the Rupee.

I assumed that the OP's headline "Jupiter India in freefall" and the comment " dropping like a stone right now" were referring to very recent performance.......but agreed, the overall performance over the whole of 2018 so far has been pretty poor too.

dunstonh

Jupiter India is an extremely high risk, highly volatile fund with 90% loss potential within 12 months.

You dont just have a volatile economy with high levels of fraud. You also have a volatile currency. its the sort of fund you dont exceed a few percent on as part of a wider portfolio.

However, I am looking at the recent drop and its certainly not freefall territory yet and its just undoing 2016/17 gains. I do wonder if the reference to freefall on a peak to trough of -26% suggests the OP is not aware of the extreme loss potential of this fund

zagfles

dunstonh wrote: »

Jupiter India is an extremely high risk, highly volatile fund with 90% loss potential within 12 months.

You dont just have a volatile economy with high levels of fraud. You also have a volatile currency. its the sort of fund you dont exceed a few percent on as part of a wider portfolio.

However, I am looking at the recent drop and its certainly not freefall territory yet and its just undoing 2016/17 gains. I do wonder if the reference to freefall on a peak to trough of -26% suggests the OP is not aware of the extreme loss potential of this fund

Exactly - look at the 5 year performance, it's done very well even with the recent dip, it's up over 100%

https://www.hl.co.uk/funds/fund-discounts,-prices--and--factsheets/search-results/j/jupiter-india-accumulation-inclusive/charts