Investors who want to invest outside of the Indian market can do so directly by directly investing in stocks or through the International or Global Mutual Fund category. These funds add a layer of geographic diversification to the diverse range of Mutual Fund types currently available in India.
International investing can help you expand your portfolio and seek additional growth opportunities.
These investments could be securities that you would have missed if you had only invested in opportunities in your home country. Foreign Investment may allow you to get back up from the prevailing market downturn.
Global markets have a higher likelihood of long-term growth, which makes them efficient in the long run. Furthermore, it allows investors to invest in a variety of markets, sectors, industries, risk courses, and other areas.
International Mutual Funds work in the same way as any other Equity Mutual Fund. The investment is made in rupees, and investors are given units of the investments in return. The money is invested in equities of companies listed on transactions outside India by the financial adviser or manager.
International Mutual Funds can assist you if you are an investor willing to look to attain substantial amounts of money for long-term goals, including retirement, supporting your family in the long run, and so on. Long-term investment frontiers safeguard you from equity market irregularity and also enable you to benefit from the power of compounding.
Moving forward, this blog consists of a list of some of the 5 best Foreign Mutual Funds in India 2023.
International Mutual Funds
Listed below are some of the factors to be considered before Investing in International Mutual Funds:
Various global funds employ various investment techniques, something that their fund managers use to build their portfolios. Some funds have portfolios that include both Indian and foreign equities.
On the contrary, there are funds that only invest in stocks from developing markets. As a result, there are numerous international funds with varying portfolios, therefore, it is important to be aware of where your fund decides to invest, and it should be coherent with your financial goals.
Your portfolio can earn greater returns by trying to capitalize on multiple economies at the same time.
Aside from managing risks through diversification, foreign investment can enhance the efficiency and standard of your portfolio.
Taxation is another area of concern, which could be a prospective stumbling block.
For example, hybrid global funds prefer investing about 70% of their corpus in domestic businesses and the rest in international markets. As a result, it generates returns pertaining to long-term capital profits tax.
Despite the numerous advantages that international funds provide, you should be aware of the risks linked with mutual fund investing.
The existing market fluctuations in the other country, as well as the sectoral market, can have an impact on the fund’s performance. As a result, making the best decision necessitates extensive research.
You should be aware of the expenses that eat into your returns prior to actually investing in international funds.
An expense ratio is a fee charged by AMCs. This fee is used to cover the fund’s organizational and operating costs, such as the fund manager’s wages. It is billed on a yearly basis.
Here is an overview of some of the best-performing International Mutual-
Franklin India Feeder Franklin US Opportunities Fund (Growth) is an international open-ended fund-of-funds scheme. It is considered one of the best global Mutual Funds.
It chiefly invests in leading growth companies based in the United States across a range of market capitalizations and enterprises or industries. The fund allows Indian investors to invest in American companies by purchasing shares in the fund.
ICICI Prudential US BlueChip Equity Direct-Plan-Growth ICICI Prudential US BlueChip is a thematic equity fund. It is one of the best US Mutual Funds in India.
The investment objective of ICICI Prudential US BlueChip Equity Fund is to provide long-term capital appreciation to investors by primarily investing in equity and equity-related securities of companies listed on recognized stock exchanges in the United States of America.
PGIM India Global Equity Opportunities Fund Direct-Growth is an “Other” Mutual Fund Scheme launched by PGIM India Mutual Fund.
The scheme seeks to generate long-term capital growth by investing predominantly in units of overseas mutual funds, focusing on agriculture and/or would be direct and indirect beneficiaries of the anticipated growth in the agriculture and/or affiliated/allied sectors.
Edelweiss Greater China Equity Offshore Fund Direct-Growth is an “Other” Mutual Fund Scheme launched by Edelweiss Mutual Fund and has to be in the Scheme is to provide long-term capital appreciation by investing in JPMorgan Funds – JF Greater China Equity Fund, an equity fund that invests primarily in a diversified portfolio of companies incorporated or which have their registered office located in, or derive the predominant part of their economic activity from, a country in the Greater China region.
Motilal Oswal Nasdaq 100 FOF (Fund of Funds) Direct-Growth is an “Other” Mutual Fund Scheme launched by Motilal Oswal Mutual Fund. The Scheme seeks returns by investing in units of Motilal Oswal Nasdaq 100 ETF.
This was the list of the Best Global Mutual Funds in India. We genuinely hope that this article helps you in getting a better picture of the meaning and workings of these top AMCs of India.
It’s worth noting that international funds are better suited for experienced or professional investors, ones that have already built a sizable equity portfolio in their home country as well.
Before making any type of investment, it is very important to evaluate your comfort space in risk taking so that you can avoid circumstances that wouldn’t be suitable for you.
Disclaimer: This blog is solely for educational purposes. The securities/investments quoted here are not recommendatory.
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Research Analyst - Bavadharini KS