Active EM funds set for best run in 8 yrs
Business Standard
|October 23, 2025
South Korea and China lift returns, India trails
Actively managed global emerging market (GEM) funds are having their best run in eight years.
With average returns of around 26 per cent so far in 2025, they are on course for their strongest calendar-year performance since 2017, according to an analysis by Steven Holden of Copley Fund Research, published on Smartkarma.
However, fewer than 40 per cent of these funds have outperformed their benchmark, the MSCI Emerging Markets Index, which has risen nearly 28 per cent this year — largely driven by gains in South Korea and China.
“Style and regional positioning drove dispersion,” Holden said. “Value managers and South Korea exposure supported gains, while aggressive growth styles and India-heavy allocations weighed on returns. High active share strategies also trailed.”
India and South Korea — the thirdand fourth-largest components of the MSCI Emerging Markets Index — have played outsized roles in determining fund performance.
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