There is one fund available to Indian investors that offers a play on this geography. JP Morgan JF ASEAN Equity Offshore is a feeder fund that invests in JPMorgan Funds - JF ASEAN Equity Fund. Its 1-year return as on July 27, 2012 is 18 percent, the BSE Sensex showing a return of -6 percent during the identical period. Even its year-to-date returns of 17 percent put it ahead of the Sensex’s 11 percent. The fund was launched in India in 2011, but if one looks at the long-term performance of the underlying fund, it is ahead of the MSCI India Net index.

While this may sound rosy, do remember that there is the currency risk to contend with. The rupee will eventually strengthen and this would hinder your returns. Though your investment is in rupee terms, it would have been converted into foreign currency. It will then need to be re-converted into rupees when you sell your units. If the rupee appreciates when you do so, you would lose out. Over the long term, if the fund continues to deliver well, that negative impact would be nullified to some extent.

(The Author is Larissa Fernand from Fundsupermart.com)