JPMorgan Funds - Greater China Fund

Is about the holdings in the portfolio,

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JP morgan is more into info tech, cust discr, comm service. all the high tech and growth.

index more into info tech, cust discr and finance. Also heavy into boring sector like ultilities, material..... while jp the most just hold 4.5%.

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Naturally, the fund will outperform the index. However, it also come with high volatility (or standard deviation).

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Thus if you just hold Alibaba (the top holding) you can outperform the fund but with higher volatility.

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Simple rule: less diversified = higher growth = higher volatility

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https://www.msci.com/documents/10199/113f7338-9...

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Hi roger, it is all about the allocation. Mutual Funds do not blindly follow the weightage of the index. Their job is to indentify potential sectors and companies that can possibly outperform the markets. Being more tech focused, it is only reasonable that the fund outperformed the index. Every fund that is heavy on the tech sector would have achieve comparable performance during the same period (post covid).