The Indian stock market experienced a remarkable year in 2024, marked by a broadly bullish trend with periods of volatility. The Nifty 50 index posted a return of 8.80%, while the broader Nifty 500 outperformed it significantly with a 15.16% return.
At the start of the year, mutual fund industry veteran Ritesh Jain, in collaboration with Eastern Financiers, one of India's leading wealth management firms, launched nrizen.com. This platform offers curated mutual fund portfolios specifically designed for Non-Resident Indian (NRI) investors. Ritesh Jain’s selection for these model portfolios was guided by his macroeconomic views, focusing on themes expected to generate significant returns:
- High nominal GDP
- Import substitution
- Manufacturing growth
- Expansion in electronics and alternative energy sectors
While traditional diversified equity mutual funds are heavily weighted towards the services sector, which comprises over 50% of India’s GDP, Ritesh’s portfolios reflect a strong conviction in India’s manufacturing-led growth story. His curated funds have a pronounced tilt towards manufacturing.
Performance Highlights
Ritesh Jain developed two distinct fund baskets for NRIs, one for US/Canada residents and another for NRIs from other countries. Both portfolios have delivered outstanding performance, exceeding 20% Year-to-Date (YTD) returns as of December 31, 2024, consistently outperforming the Nifty 500 across nearly half the months of the year.
Quarterly and YTD Returns
| Portfolio | Q1 2024 | Q2 2024 | Q3 2024 | Q4 2024 | YTD |
|---|---|---|---|---|---|
| US/Canada Fund Basket | 4.9% | 13.6% | 9.3% | -6.9% | 21.3% |
| Other Countries Fund Basket | 9.7% | 13.6% | 5.8% | -8.6% | 20.5% |
| Nifty 500 TRI | 4.4% | 11.8% | 7.8% | -7.3% | 16.5% |
Risk-Adjusted Returns
The curated portfolios not only surpassed the Nifty 500 in raw returns but also in risk-adjusted returns, as indicated by higher Sharpe Ratios:
| Portfolio | Standard Deviation | Sharpe Ratio |
|---|---|---|
| US/Canada Fund Basket | 10.32% | 1.25 |
| Other Countries Basket | 12.19% | 1.01 |
| Nifty 500 TRI | 11.14% | 0.79 |
Comparative Outperformance
Jain’s curated fund baskets outperformed a significant majority of diversified equity mutual funds in India, where only about 60% of funds managed to beat their benchmarks. This consistent outperformance across varying market conditions reinforces confidence in Jain’s investment strategy.
Outlook and Investment Opportunities
While short-term volatility may occur due to profit booking and uncertainties surrounding interest rate cuts, the long-term outlook for Jain’s model portfolios remains positive.
Investors, including resident Indians, NRIs, and OCI holders, can register and invest in these high-performing portfolios through nrizen.com.
