hy to invest in International Funds?
We would like to give you 4 reasons as to why having International Funds is a good idea
We are living in a world which is so inter-connected. It is very easy to get access to international goods or services on our fingertips. Be it “Netflix” to watch movies/shows, ‘’Amazon’’ to shop or just “Google” which has become synonymous with searching on the web, all these are based out of India. As consumers we trust these brands but have you ever thought that it could be possible to own these as a part of your portfolio? Would you like to have such stocks as a part of your portfolio?
Yes! Investing in International Schemes through Mutual Funds, gives you a chance to own overseas equity in your investment portfolio.
- Diversification of Portfolio
By investing in international funds you get exposure to multinational companies that are not listed in one’s country. Indian markets and international markets have a low or negative correlation. It means any downfall in the Indian markets will not affect the international funds in your portfolio. In this manner you can take advantage of a positive market run of another economy as well. By investing in international funds not only does one reduces the risk factor in the portfolio but also increases the diversification to global equity.
2. Exposure to Global Markets
There are international funds which provide overall global exposure as well as country wise exposure. Imagine getting the benefit of US markets or shanghai markets and becoming a part of their growth story. Funds like Invesco Global Consumer Trends Fund and PGIM Global Equity Opportunities provide global exposure by investing in companies which are consumption based and market leaders.
3. Indian Market Valuations
As many of us would have already heard in the news, the valuations of the Indian Market are at an all-time high. Thus by investing in international funds we can safeguard our portfolio from any cyclical change in the Indian Markets. This is possible because Indian Markets and International Markets have a low or negative correlation and thus this will help us have a cost-effective portfolio.
4. Exposure to new age companies
International funds give investors several opportunities in new age industries like ecommerce, social media, electric vehicles, cyber security and cloud computing among others. We could indirectly become shareholders of the following companies- Amazon, Netflix, Facebook, Twitter, Louis Vuitton, Walmart and Tesla. These companies have been outperformers over the last few years. So, by investing in International funds you can get exposure to these stocks.
International investing through Mutual Funds is a good way to get exposure to global MNCs. We at Right Value, suggest including international schemes in your portfolio. You can contact us to have a better understanding and we would be happy to have a conversation