US equity funds outperform domestic schemes.

• US-oriented equity funds delivered returns of 6.62 per cent in May, while domestic-oriented funds posted weak performance amid volatile markets.
• In the first half of the month, the markets corrected, with rising cases of Covid-19 and the government’s Rs 20-trillion stimulus package failing to meet market expectations.
• Mid-cap funds have delivered returns of 1.14 per cent.
• Small-cap funds delivered returns of 0.58 per cent.
•  Large-cap funds gave marginal returns of 0.04 per cent.
• Diversification towards US and international funds can give investors exposure to global technology and health care businesses.
• This can gain market share amid Covid-19 disruptions.