Best Mutual fund schemes that invest in foreign equities
International mutual funds are equity funds that primarily invest in foreign markets. They mainly invest in stocks of companies listed outside India. International mutual funds help diversify an investor’s investment portfolio. They also help funds get better returns by taking a higher risk through investment in international markets.
International Mutual Funds
International Mutual Funds are also known as “foreign funds.” With the Reserve Bank of India’s (RBI) permission, International Mutual Funds opened up in India in 2007. Accordingly, each fund is allowed to have a corpus of USD 500 million. They are a form of the “fund of funds” strategy, to help achieve broader diversification and appropriate asset allocation by investing in various fund categories wrapped into a single portfolio. International Mutual Funds are a great investment option for investors considering the volatile local markets and economy.
Best Mutual Fund Schemes that Invest in Foreign Equities
- Aditya Birla Sun Life Commodity Equities Fund – Global Agri Plan
The scheme aims to offer long-term capital growth by investing in stocks of Agri commodity companies and overseas mutual fund schemes with similar investment objectives. It has had an annualized return of 11% since its launch.
- DSP BlackRock World Mining Fund
This Scheme aims to seek capital appreciation by investing in the units of BlackRock Global Funds- World Mining Fund. The scheme may invest in the units of other similar overseas mutual fund schemes, constituting a significant part of its corpus. It has had an annualized return of 5% since its launch.
- Principal Global Opportunities Fund
The objective of this scheme is to give long-term capital appreciation by investing in overseas mutual fund schemes and a portion of its corpus in Money Market Securities and units of Money Market/Liquid Schemes of Principal Mutual Fund. It has had an annualized return of 9.2% since its launch.
- ICICI Prudential Global Stable Equity Fund
This scheme is an open-ended fund of funds scheme aiming to provide adequate returns by investing in the units of one or more overseas mutual fund schemes, which can invest globally. Its CAGR/Annualized return is 9.4% since its launch.
- Franklin India Feeder Franklin US Opportunities Fund
This scheme is recommended for investment within US equity mutual funds. The historical performance of the fund has been good with a 5-year growth rate of 19.2%.
- Nippon India US Equity Opportunities Fund
This scheme invests mainly in shares of foreign companies. It has a 5-year growth rate of 18.1%.
- Motilal Oswal Nasdaq 100 Fund of Fund
The fund of funds is created as a facility to enable retail investors to invest in the NASDAQ 100 exchange-traded fund. This scheme has a good track record and historical performance with a growth rate of 28% since its launch.
Tips to Pick an International Mutual Fund
Here are some tips to pick international mutual funds:
- Check the fund and the fund manager’s track record
- Look for experienced fund managers
- Make sure the scheme you choose matches your portfolio
- Read the offer document carefully for underlying costs before investing
- Check if the country you choose to invest in has a tax treaty with India to avoid double tax.
Contact ANSPL for more information about investment options.
