Top Equity Funds 2025: South Korean funds gained nearly 100%, were you on board?

Market Recap 2025

It has been a roller-coaster year for global equity markets, shaped by concerns over the sustainability of AI spending, “Liberation Day” tariff risks, and shifting interest-rate expectations. Yet despite these headwinds, markets proved remarkably resilient in 2025. Global equities delivered a decent 15.7% return (all performance figures are in SGD terms, unless otherwise stated), with the majority of markets under our coverage posting positive gains (Figure 1).

US equities advanced by 10.9% in 2025 but lagged most other major global markets. Volatile trade policies weighed on investor sentiment and clouded the growth outlook. Against this backdrop, we downgraded the US market to a “neutral” rating in March 2025.  However, a key bright spot was the semiconductors sector which surged 40.6% over the year. Strong AI-driven demand lifted the entire semiconductor value chain, from chip designers and manufacturers to equipment suppliers, driving strong revenue growth and pushing share prices to record highs.

Investors who followed our recommendations and looked beyond the US were well rewarded. Asian markets outperformed in 2025, with the broad Asia ex-Japan region delivering a robust 25.2% return. South Korea topped the leaderboard, surging 72.4% as political stability was restored following the inauguration of President Lee Jae-myung. AI-driven growth further fuelled the rally, with technology stocks, particularly memory chip makers, benefiting from strong High Bandwidth Memory (HBM) demand and clear earnings visibility.

Our home market, Singapore, ranked third. GDP growth surprised on the upside at 4.8% year-on-year, supported by strong AI-related electronics demand. Beyond economic resilience, the equity market’s impressive 28.8% gain was underpinned by resilient bank earnings and valuation upgrades following the Monetary Authority of Singapore’s measures to revitalise the stock market.

China also delivered a strong performance. Our upgrade of the market in June to an “attractive” rating proved timely. Chinese equities gained nearly 24% in 2025, supported by a more accommodative policy stance toward the private sector and targeted stimulus measures that helped restore investor confidence. In addition, the emergence of AI models such as DeepSeek reignited interest in China’s technology sector, drawing increased foreign investor participation.

India, another Asian heavyweight, posted a more modest 10.5% return in Indian rupee. While its long-term structural growth story remains intact, performance lagged regional peers amid stretched valuations and softer earnings momentum. Moreover, significant depreciation of the rupee against the SGD dragged total returns down to -1.0% in SGD terms.

Figure 1: Performances of major markets / sectors ranked for 2025

Top Performing Equity Funds of 2025

Gold prices surged to a record USD 4,319 per ounce as at 31 December 2025, propelling gold funds to the top of the performance rankings. Heightened geopolitical tensions, a weaker US dollar, strong central bank demand, and interest-rate cuts combined to create a powerful supercycle for gold. Schroder ISF Global Gold A Acc EUR-H topped the rankings with a gain of 202.1%, driven by strong stock selection, particularly Barrick Gold and Newmont, which reported robust cash flows and rising profitability. The fund’s EUR-hedged share class also added a currency tailwind amid euro strength against the US dollar.

South Korean equity funds followed behind. Both LionGlobal Korea Fund SGD and JPMorgan Funds - Korea Equity A (acc) USD delivered strong double-digit returns of 94.3% and 75.8% respectively. LionGlobal outperformed, supported by its heavier allocation of around 50% to the information technology sector. In particular, its combined exposure of approximately 38% to the two largest memory chipmakers, SK Hynix and Samsung Electronics, compared with about 20% in JPMorgan’s fund, contributed meaningfully to its superior performance.

Another notable beneficiary of the technology rally was United China A Shares Innovation A Acc SGD. This fund gained nearly 70% in 2025, driven by its substantial 55.1% allocation to the information technology sector. Top holdings such as Zhongji Innolight and Eoptolink Technology saw their share prices rise by 388% and 415%, respectively, as surging demand for optical transceivers and modules, used in cloud data centres and hyperscale AI infrastructure, fuelled rapid top-line growth. The fund also holds Cambricon, one of China’s leading chip designers, which benefited from Beijing’s push to build a domestic semiconductor ecosystem.

Table 1: Top Performing Equity Funds of 2025

Fund name	2025 (%)	Segment
Schroder ISF Global Gold A Acc EUR-H	202.1	Gold & Precious Metals
FTIF - Franklin Gold and Precious Metals A (acc) USD	173.7	Gold & Precious Metals
Ninety One Global Strategy Fund - Global Gold A Acc SGD	163.2	Gold & Precious Metals
Blackrock World Gold Fund A2 AUD-H	159.1	Gold & Precious Metals
United Gold and General A Acc SGD	131.4	Gold & Precious Metals
LionGlobal Korea Fund SGD	94.3	Korea Equity
JPMorgan Funds - Korea Equity A (acc) USD	75.8	Korea Equity
Blackrock World Mining A2 AUD-H	70.0	Global Resources Equity
United China A Shares Innovation A Acc SGD	69.6	China-Local Equity
Fidelity Iberia A-EUR	51.8	Iberia Equity
Total returns basis in SGD terms. Source: iFAST Compilations. Data as of 31 Dec 2025.

Bottom Performing Equity Funds of 2025

Indian equities dominated the laggards in 2025, reflecting broad-based market weaknesses. Both UTI India Innovation Acc USD and Nippon India Investment Unit Trust - Nippon India Small and Mid-Cap Equities A USD ranked among the worst performers, largely due to their significant exposure to small- and mid-cap companies during a period marked by risk aversion. In addition, UTI’s fund, with its heavier tilt toward technology, was hit by sector-wide corrections and muted revenue growth as foreign client spending slowed amid weakening global macroeconomic conditions.

Thai equities also ended 2025 in negative territory, weighed down by persistent economic and political challenges. The dismissal of Prime Minister Paetongtarn Shinawatra in August 2025 left the country in political limbo. Political uncertainties were compounded by broader economic headwinds, including tariff pressures on exports, a slump in tourism, and weak investment and manufacturing sentiment, all of which contributed to sustained foreign capital outflows. Against this backdrop, it was unsurprising to see abrdn Thailand Equity SGD among the weakest performers.

Another ASEAN market, the Philippines, also struggled in 2025 amid heightened political uncertainty. Eastspring Investments - Philippines Equity AS SGD recorded a -12.0% return. Corruption scandals linked to flood control projects, together with rising tensions with China over disputed waters in the South China Sea, triggered episodic sell-offs and weighed on investor sentiment. Structural constraints, including limited market depth and liquidity, as well as heavy sectoral concentration in a few traditional industries, further dampened foreign investor interest.

Table 2: Bottom Performing Equity Funds of 2025

Fund name	2025 (%)	Segment
UTI India Innovation Acc USD	-20.2	India Equity
Nippon India Investment Unit Trust - Nippon India Small and Mid-Cap Equities A USD	-16.8	India Small to Medium Companies Equity
Stewart Investors Indian Subcontinent All Cap I Acc USD	-16.3	India Equity
Allianz India Equity AT Acc USD	-16.2	India Equity
HGIF - Turkey Equity Fund CL AD SGD	-15.8	Turkey Equity
abrdn Thailand Equity SGD	-15.1	Thailand Equity
CPR Invest - Food For Generations A2 Acc SGD-H	-13.0	Global Consumer Equity
Eastspring Investments - Philippines Equity AS SGD	-12.0	Philippines Equity
abrdn India Opportunities SGD	-11.6	India Equity
GS India Equity Portfolio Acc USD	-11.2	India Equity
Total returns basis in SGD terms. Source: iFAST Compilations. Data as of 31 Dec 2025.

Final thoughts: 2026 opportunities to be global and diversified

As we step into 2026, several lessons from 2025 will continue to shape the investment landscape. Leadership is expected to be broader, opportunities more global, and returns no longer concentrated in a single market or theme. This reinforces the need for investors to look beyond the US.

Singapore equities offer a compelling opportunity. The market is entering a revitalisation phase, supported by MAS’s Equity Development Program and initiatives to boost liquidity and lift smaller-company valuations. Strong bank earnings and a more favourable interest-rate environment for REITs also provide support for the market. Investors can gain broad exposure through Amova Singapore Dividend Equity SGD or target smaller-cap opportunities via LionGlobal Singapore Trust Acc SGD.

We remain constructive on Chinese equities and expect the rally to extend into 2026 and upgraded the market to 3.5 stars “attractive” from 3.0 stars. Supportive policies for the private sector continue to boost investor confidence, while rapid AI advancements, policies toward semiconductor self-sufficiency, and earnings growth from AI-enabled businesses support technology stocks to move higher. Investors can capture China’s growth through Fidelity China Focus A-SGD.

Technology gains are also broadening beyond the US. Taiwan’s TSMC benefits from near-monopoly positions in advanced-node manufacturing, while South Korea’s memory chip leaders are poised to capitalise on the HBM upcycle. Rising prices and resilient demand for HBM continue to underpin South Korea’s technology sector, making LionGlobal Korea Fund SGD a compelling option for investors seeking tech-focused exposure. JPMorgan Funds - Korea Equity A (acc) USD offers a broader-based portfolio, positioning investors to benefit more from stimulus-driven momentum in industrials and consumer sectors, as well as the ongoing valuation upgrades in the financials sector.

Japanese equities also warrant a long-term strategic allocation. Ongoing monetary policy normalisation, ambitions in semiconductors, and structural reforms aimed at improving capital efficiency and shareholder returns continue to support the investment case. Eastspring Investments - Japan Dynamic AS SGD is a good option for capturing Japan’s improving fundamentals.

While we have downgraded our view on the US market, the digital economy remains a bright spot, supported by strong AI demand, rising monetisation, and diversified revenue streams. Funds such as Fidelity Global Technology A-ACC-USD and Eastspring Investments Unit Trusts - Global Technology SGD offer attractive ways to gain targeted exposure.

Related article:

iFAST 2026 Investment Outlook: Home Ground Advantage

US Outlook 2026: Downgrading US equities on softening economic fundamentals

Singapore 2026 market outlook: Policy tailwinds set the stage for equity gains

Upgrade to 3.5 Stars: Chinese equities set to extend their rally into 2026

Structural transformation will keep Japan on solid ground in 2026

Declaration:

For specific disclosure, at the time of publication of this report, IFPL (via its connected and associated entities) and the analyst who produced this report hold a NIL position in the abovementioned securities.