Axis Greater China Equity Fund of Fund has reached a significant milestone, completing five years since its launch in January 2021. The scheme has demonstrated robust growth, achieving a fund size of ₹1,696 crore as of December 31, 2025, while continuing to attract investor inflows.

Fund Performance and Growth Trajectory

The fund has delivered impressive returns for investors, with the one-year return standing at 38.92% on a CAGR basis as of December 31, 2025. This performance comes at a time when several other domestic mutual funds have halted investments in overseas schemes due to category limits, positioning the Axis scheme favorably in the market.

The fund maintains substantial growth potential with approximately ₹1,500 crore of available headroom under the overseas investment category, providing ample scope for future expansion.

Investment Strategy and Market Access

The Axis Greater China Equity Fund of Fund provides Indian investors with exposure to Greater China markets, including China, Taiwan, and Hong Kong, through a single India-domiciled fund. The scheme accepts investments through both SIP and lump-sum routes in Indian rupees, making it accessible to a wide range of investors.

The fund invests in Schroder ISF Greater China Class X Acc, which follows an active investment strategy. This active management approach is particularly relevant for Greater China markets due to their sensitivity to policy and sentiment shifts.

Portfolio Composition and Geographic Allocation

As of December 31, 2025, the fund's geographic allocation demonstrates a well-diversified approach across the Greater China region:

Sector Diversification and Top Holdings

The fund maintains a balanced sector exposure strategy, with information technology leading the allocation at 25.10%, followed by consumer discretionary at 18.70%. Other significant sectors include communication services (12.70%), financials (11.00%), and industrials (9.80%).

The fund's portfolio reflects exposure to leading companies across the Greater China region, providing investors with access to established market leaders and growth opportunities in key sectors. With its competitive expense structure and strategic positioning in a constrained category, the fund continues to offer Indian investors a viable avenue for international diversification.

Treasury Secretary nominee Scott Bessent has suggested that President Trump and Chinese President Xi Jinping could potentially hold up to four meetings during the current year, according to a report by Politico.

Diplomatic Engagement Prospects

The indication of multiple potential meetings between the leaders of the world's two largest economies suggests a possible shift toward increased diplomatic dialogue. Bessent's comments point to the administration's consideration of enhanced engagement channels with China.

Significance for US-China Relations

The frequency of proposed meetings indicates both nations may be exploring opportunities for direct leadership dialogue to address various bilateral issues. Such regular high-level engagement could provide a framework for ongoing discussions between the two economic superpowers.

The suggestion comes as both countries navigate complex economic and diplomatic relationships, with regular leadership meetings potentially serving as a mechanism for addressing various concerns and opportunities between the nations.