Nippon India Taiwan Equity Fund

Nippon India Taiwan Equity Fund has delivered exceptional returns, with a 1Y SIP XIRR of 106.88% and 3Y XIRR of 47.15%, dramatically outpacing the thematic category averages of 11.7% and 16.41% respectively. Calendar year returns have been strong in recent years, including 84.16% in 2026 and 57.84% in 2025, though 2022 saw a sharp -33.37% decline. The fund's lump-sum rolling 3Y mean return of 36.37% also indicates sustained performance across market cycles.

The fund shows 5 drawdown events exceeding 10%, with a maximum drawdown of -44.77% that took 455 days to recover, highlighting significant single-country concentration risk. The Calmar ratio of 1.0982 over 1Y and 0.8174 over 3Y suggests reasonable risk-adjusted returns relative to the depth of drawdowns experienced. Investors should recognize that the -33.37% calendar year return in 2022 demonstrates this fund can experience severe downside during adverse market conditions.

As a thematic fund focused exclusively on Taiwan, the portfolio is concentrated in a single overseas market, likely with heavy exposure to semiconductor and technology companies that dominate the Taiwanese economy. This single-country mandate means the fund offers minimal geographic diversification and its performance is closely tied to Taiwan's export-driven tech cycle. Investors should treat this as a satellite allocation rather than a core holding.

The fund is currently a top performer in its category, with a 100% consistency score over both 12-month and 24-month periods, indicating it has remained among top funds continuously. Its 3Y XIRR of 47.15% is nearly three times the category average of 16.41%, reflecting exceptional relative performance. However, such outperformance in a narrow thematic segment may be cyclical rather than repeatable over longer horizons.

This fund suits aggressive investors with high risk tolerance who already hold a diversified core portfolio and want tactical exposure to the Taiwanese technology theme. A time horizon of at least 5-7 years is advisable to ride out the deep drawdowns this fund has historically experienced. Investors should limit allocation to a small percentage of their portfolio given the single-country concentration and currency risk inherent in international thematic funds.

• Exceptional returns with 1Y XIRR of 106.88% and 3Y XIRR of 47.15%, far exceeding category averages of 11.7% and 16.41%
• Perfect consistency with a 100% top-fund score over both 12-month and 24-month periods
• Strong recent calendar year performance including 84.16% in 2026 and 57.84% in 2025

• Severe maximum drawdown of -44.77% with a 455-day recovery period, plus a -33.37% calendar year return in 2022
• Single-country thematic concentration in Taiwan creates high dependence on one market, particularly its technology and semiconductor cycle, with added currency risk