Brazil equity funds shine ahead of Rio Olympics

South Korean equity funds investing in Brazilian shares yielded much higher than other overseas stock funds in July ahead of the Summer Olympics in Rio de Janeiro, a market tracker said Tuesday.

According to fund rating and consulting firm KG Zeroin, Brazilian equity-related funds posted the highest return of 8.33 percent among overseas stock funds here as of July 29.

Funds for healthcare stocks trailed with 6.69 percent, followed by German equity funds with 6.39 percent and funds for basic materials companies with 6.31 percent.

KG Zeroin also said an equity fund reserved for Brazilian stocks and run by KB Asset Management Co. recorded the highest return of 11.66 percent among all individual funds.

A market analyst attributed the stellar performance of Brazilian equity funds to high expectations for the upcoming Olympics and a weak U.S. dollar following Britain's decision to exit the European Union.

"Brazilian equity funds registered high returns as expectations are running high for the Rio Olympics," said Oh Eun-soo, an analyst at Hyundai Securities Co.

The greenback has remained weak against major currencies since Brexit, sending emerging markets higher and sparking a massive inflow of funds into the markets, the analyst added.

The Rio Olympics, the first in South America, will kick off on Friday and run till Aug. 21. South Korea is shooting for its fourth consecutive top-10 showing by winning at least 10 gold medals. (Yonhap)