International Mutual Funds
International Mutual Funds
International Mutual Funds
An international mutual fund invests in firms in countries other than the ones they
reside. It is also called overseas or foreign funds. Investing in them may mean more
risk exposure, but also chances of higher returns. People usually prefer it as an
alternative and/or long-term investment.
With people getting increasingly aware of investment options around the world, the
need for portfolio diversification is greater than ever. A diverse plan not only spread
the risks, but also tap earning potential of different markets. The fund houses are
coming up with innovative schemes across market types, sectors and risk classes, with
more experimental investors entering the playground.
a. Risk Factor
Currency exchange rates go through highs and lows all the time. For instance, in a
US-centric international fund if the rupee falls against the dollar, then you get more
rupees per dollar invested – the NAV shoots up. On the other hand, if the rupee rises,
then you get lesser rupees per dollar and the NAV falls.
e. Tax-Efficiency
There is also the issue of taxation that could prove to be a potential minefield. For
instance, hybrid global funds invest 65%-70% of their corpus in domestic companies
and the remaining in overseas markets. Therefore, it makes the returns subject to long
term capital gains tax.
c. Portfolio Diversification
An investment portfolio has a combination of high, medium and low risk investments.
Hence, when there is a market low in the home country, the one abroad can
compensate for it.
Large Cap Equity Mutual Funds - India Overseas Mutual Funds - India
Scheme Annualized Return Scheme Annualized Return
Three Year Three Year
Escorts Leading 33.6 ICICI Prudential 25.6
Sectors – Direct Indo Asia Equity
Fund - RP
Escorts Growth 27.8 Motilal Oswal Most 25.5
Plan Shares NASDAQ
100 ETF
SBI Blue Chip 27.2 Franklin India 25.2
Fund Feeder – US
Opportunities Fund
Franklin India 26.6 Mirae India China 25.2
Opportunities Fund Consumption Fund
JM Multi Strategy 25.8 ICICI Prudential 21.4
Fund US Blue-chip
Equity
Birla Sun Life Top 25.7 DSP Blackrock US 19.6
100 Flexible Equity
Fund
Birla Sun life 25.6 L&T Indo Asia 19.3
Frontline Equity Fund
Kotak 25.1 JP Morgan Greater 19.0
Opportunities Fund China Equity
Reliance Focused 24.7 Birla Sun Life 16.5
Large Cap Fund – International Equity
Retail Plan
IDBI Top 100 24.3 Tata Growing 16.4
Equity Economies
Infrastructure Fund