In January, the winners in the world of investment funds spell out one word: gold. According to a comprehensive analysis by Morningstar, funds with exposure to the precious metal have dominated the list of top-performing funds this month, thanks to the soaring price of gold.
Leading the pack in January were the Schroder International Selection Fund Global Gold, CPR Invest – Global Gold Mines, and Blackrock Global Funds – World Gold Fund, posting impressive returns of 18%, 16%, and 15% respectively. On average, precious metal funds saw a significant increase of 12.95% during the month.
The surge in gold prices reached a new milestone on Wednesday, hitting a record high of $2,877 per ounce. Although the price has slightly retreated since then, it currently stands at $2,865 per ounce.
On the flip side, the month’s biggest losers were India-focused funds, as the Indian Nifty 50 index experienced its longest monthly losing streak in over 23 years. Factors such as heavy foreign selling and concerns about corporate profits in a slowing economy weighed down Indian funds.
DNB Fund – India and Carnegie Indienfond were among the worst performers, dropping by 6.75% and 6.71% respectively.
Looking at the best-performing funds in January, it’s clear that gold-related funds dominated the scene. The Schroder International Selection Fund Global Gold led the way with a remarkable 18.01% return for the month and an impressive 64.26% return over the past year. CPR Invest – Global Gold Mines and BlackRock Global Funds – World Gold Fund also delivered strong performances, with returns of 15.54% and 15.39% respectively for the month.
Other notable top performers include Handelsbanken Brasilien Tema, Craton Capital Precious Metal, AuAg Silver Bullet, and AuAg Gold Rush, showcasing the strength of gold-related investments in the current market environment.
On the other hand, the worst-performing funds in January were predominantly India-focused, reflecting the challenges faced by the Indian market during the month. DNB Fund – India, Carnegie Indienfond, Carnegie Bear, BlackRock Global Funds – India Fund, and Matthews Asia Funds – India Fund were among the funds that experienced significant losses during the period.
Overall, the performance of investment funds in January highlighted the impact of macroeconomic factors and market trends on different sectors and regions. While gold-related funds shone brightly, India-focused funds faced headwinds, underscoring the importance of diversification and careful risk management in today’s volatile investment landscape.