International Mutual Funds – An Element of Investment
Now, when people are getting aware of numerous investment options globally, the need for portfolio diversification is bigger than ever. A sundry plan not only spread risks but helps in earning potential of several markets. There are many fund houses that are coming with innovative schemes across different types of market, risk classes, and sectors.
To say it, an International mutual fund invests in firms precisely in countries except for the ones they reside. It is also known as foreign funds or overseas. Investing in them will give higher returns, but with more risk exposure. Mostly people prefer this as a long-term investment/ and alternative.
Investors have always been excited towards international mutual funds for countless reasons;
- First, is diversification.
- Second, the economic cycle varies from country to country; simultaneously, investment in different economies ensures minimum loss and possibly better returns.
- Third, exposure to international markets can only broaden your expertise and experience.
The investor must be careful before investing and prefer to do continual market research. Also, he/she must be sure of the investment goals, time-period, both short and long-term before investing.
- Constant Vigilance: Social, economic, and political aspects in different countries can impact the performance of the mutual fund differently. Therefore, the investor must require keeping track of the movement of the market regularly.
- Risk Factor: We know that rates of currency exchange fluctuate all the time. Keep in mind about the detail of rupee and NAV.
- Dual Market Risk: To make an informed choice, the analysis of the fund is required.
- Market Returns: By evaluating several economies simultaneously, your investment portfolio can bring-in better returns. Apart from mitigating risks, overseas help in boosting portfolio-quality.
Although, figuring out the top 5 international mutual funds can be a tedious job. But, with Gulaq, let’s give you the best 3 international funds you can pick. Here:
‘TOP 3 INTERNATIONAL MUTUAL FUNDS’ according to Gulaq Methodology
|Reliance US Equity Opp Fund(G) – Direct lPlan|
|ICICI Pru US Bluechip Equity Fund(G)- Direct Plan|
|Franklin India US Opportunities Fund(G)- Direct Plan|
TYPES OF INTERNATIONAL FUNDS
|Global Funds – They do sound synonymous but global and international funds are different. Funds that are available across the world including the home country are called global funds, whereas, international funds are available only in other countries.|
|Regional Funds – If you are investing abroad focusing on a specific geographic region, then it is a regional fund.|
|Country Funds – When you end up investing in a fund that is only available only in one foreign nation, it’s known as the country fund.|
|Global Sector Funds – Paying attention to a particular sector of the economy in ‘overseas countries’, global sector suits investor(s) in that sector.|
Any plans for investing in international mutual funds? Furthermore, you can get in touch with the team of Gulaq (originally spelled as gullak) regarding the same.
*Mutual fund investments are subject to market risks. Please read the scheme information and other related documents carefully before investing.