India Capital Growth Fund undershoots benchmark in 2020 amid pandemic impact

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India-focused investment fund India Capital Growth Fund reported performance that undershot its benchmark following a pandemic-led hit to its portfolio in the first half of the year.

For the year ended 31 December 2020, net asset value rose 10.4% to 97.70 pence per share year-on-year, underperforming the benchmark, the BSE Midcap TR Index, which was up 14%.

The underperformance comes as a weaker first-half performance held back growth following 'significant' improvement in performance during the second half of the year, the company said.

'Whilst new COVID-19 cases in India are on the increase again, a second lockdown is currently regarded as unlikely and the economic recovery is expected to continue with the implementation of a successful vaccination programme coupled with investment from international companies seeking to diversify their supply chains and by reductions in corporate tax rates,' the company said.

At 9:06am: (LON:IGC) India Capital Growth Fund Ltd share price was 0p at 72p