Investing beyond domestic markets is a growing trend among Indian investors seeking geographical diversification. With global markets offering unique opportunities and potential for growth, many mutual funds in India now allow investors to access international equities. Discover mutual funds investing outside India, offering global diversification and growth opportunities. Here’s an in-depth look at the funds available, their focus regions, and what makes them valuable to your portfolio.
Why Invest Internationally?
- Geographical Diversification: Overseas investments help mitigate risks associated with dependence on a single country’s economy.
- Access to Global Opportunities: Investors can gain exposure to world-leading companies, sectors, and regions.
- Hedge Against Currency Fluctuations: International funds can benefit from the depreciation of the Indian Rupee against foreign currencies.
- Technological and Sectoral Advantage: Some regions, like the US, dominate in sectors such as technology and healthcare, providing access to growth areas often unavailable in domestic markets.
Top Mutual Funds Open for Global Investments
Below are some of the key mutual funds currently accepting fresh investments, categorized by their region of focus and assets under management:
United States-Focused Funds
- Motilal Oswal Nasdaq 100 FOF (Only SIP)
- Region: United States
- Assets: ₹5,138 crore
- Focus: Tracks the Nasdaq 100, giving exposure to top US technology companies like Apple, Microsoft, and Alphabet.
- Motilal Oswal S&P 500 Index Fund (Only SIP)
- Region: United States
- Assets: ₹3,543 crore
- Focus: Mirrors the S&P 500, representing the US economy’s largest companies.
- Franklin India Feeder Franklin US Opportunities Fund
- Region: United States
- Assets: ₹3,514 crore
- Focus: Invests in US-based companies across sectors, targeting high-growth opportunities.
- Edelweiss US Technology Equity FoF
- Region: United States
- Assets: ₹2,251 crore
- Focus: Focuses on US technology giants, ideal for tech enthusiasts looking for sector-specific exposure.
Funds Focusing on Other Global Regions
While the US remains a dominant focus, funds investing in other regions, including China, Europe, and emerging markets, are also available. These funds offer diversified exposure to areas with different economic drivers, allowing investors to balance risks and returns.
How to Choose the Right Fund?
- Region of Focus: Align your investments with areas poised for growth or regions where you want to hedge against risks in the Indian market.
- Expense Ratio: Consider funds with competitive fees to maximize returns.
- Investment Horizon: Most international funds are better suited for long-term goals due to their exposure to volatile global markets.
- Performance: Review historical returns to ensure the fund consistently delivers against its benchmarks.
- SIP vs. Lump Sum: For markets like the US with fluctuating valuations, SIPs can help average costs and reduce timing risks.
How to Get Started?
To begin investing in international funds:
- Open an account with a mutual fund provider or an online platform.
- Select the fund based on your preferred region and investment style.
- Choose between SIP or lump sum investments based on your financial goals and risk tolerance.
Conclusion
Get insights into mutual funds investing outside India, benefits, risks, and investment strategies. With these international funds currently open for investments, Indian investors have a golden opportunity to diversify their portfolios globally. Whether targeting the booming US technology sector or seeking broader exposure to developed and emerging markets, these funds can be valuable to your investment strategy. Conduct thorough research and consult a financial advisor to ensure your choices align with your long-term financial goals.
