In our interconnected global economy, focusing solely on local markets and investing in them might not suffice for optimising returns and minimising risks. Investing in International mutual funds provides Indian investors a valuable opportunity to diversify their portfolios and tap into the growth potential of foreign countries and companies.
By investing in these International Mutual Funds for Long-Term Growth, investors can leverage the expertise of professional fund managers who actively monitor global markets and make strategic investment choices based on comprehensive analysis.
What is an International Mutual Fund?
International mutual funds are equity funds that invest in the stocks of companies listed outside of India. These funds allow investors to diversify their portfolios by gaining access to some of the largest and most successful companies globally.
How Do International Mutual Funds Work?
International mutual funds operate much like local mutual funds but with a focus on global investments. Fund managers continuously evaluate investment opportunities worldwide, selecting stocks that align with the fund’s specific investment objectives and strategies. These funds can be categorised into:
- Regional Funds: Focused on specific geographic areas such as Europe or Asia.
- Sector Funds: Concentrated on specific industries like technology or healthcare.
- Global Funds: Invest across multiple regions and sectors.
Advantages of International Mutual Funds
- Exposure to Global Leaders: Get an opportunity to invest in major global companies such as Facebook and Google and reap the benefits of their growth.
- Risk Reduction: Diversify your portfolio as global markets typically do not decline simultaneously.
- Long-Term Goals: Ideal for investment goals that are at least five years in the future.
Overview of Top 10 Best International Mutual Funds to Invest in 2024
ICICI Prudential U.S. Bluechip Equity Fund
The ICICI Prudential U.S. Bluechip Equity Fund targets investments in large-cap U.S. companies known for their consistent success and strong foundations. This fund offers Indian investors an opportunity to benefit from the stability and growth potential of the U.S. market.
The primary goal of the ICICI Prudential U.S. Bluechip Equity Fund is to achieve long-term capital appreciation. This is accomplished by predominantly investing in equity and equity-related securities of companies listed on recognised U.S. stock.
Kotak Global Emerging Market Fund
The Kotak Global Emerging Market Fund focuses on investing in stocks from emerging markets, providing Indian investors access to the growth potential of developing economies worldwide.
This fund offers diversification benefits and the opportunity to capitalise on the long-term growth prospects of these burgeoning markets. The primary goal of the Kotak Global Emerging Market Fund is to achieve long-term capital appreciation.
Motilal Oswal Nasdaq 100 Fund of Fund
The Motilal Oswal Nasdaq 100 Fund of Fund tracks the performance of the Nasdaq 100 Index, which includes the 100 largest non-financial companies listed on the Nasdaq Stock Market. This medium-sized fund provides Indian investors with a straightforward way to invest in leading U.S. technology and growth companies.
HDFC Developed World Indexes Fund of Fund
The HDFC Developed World Indexes Fund of Fund is a global investment fund managed by HDFC Mutual Fund. It has been operational since September 17, 2021, making it a relatively new player in the international investment landscape.
The objective of the scheme is to achieve long-term capital appreciation by adopting a passive investment approach. It aims to achieve this by investing in units or shares of overseas Index Funds and/or Exchange-Traded Funds (ETFs). These investments will collectively closely mirror the performance of the MSCI World Index.
Franklin India Feeder-Franklin U.S. Opportunities Fund
The Franklin India Feeder-Franklin U.S. Opportunities Fund provides Indian investors with exposure to high-quality U.S. companies across various industries through investments in the Franklin U.S. Opportunities Fund.
This enables investors to capitalise on growth opportunities in the largest economy globally. The fund charges a relatively low expense ratio of 0.52%, making it a cost-effective option compared to many other international funds.
Aditya Birla Sun Life Global Excellence Equity FoF
The Aditya Birla Sun Life Global Excellence Equity FoF Direct-Growth is an international mutual fund scheme offered by Aditya Birla Sun Life Mutual Fund. The majority of the fund’s investments are in the financial sector, although it maintains a lower exposure compared to other funds in the category.
The fund maintains a competitive expense ratio of 0.68%, which is lower than the industry average for international funds. The fund has doubled the invested capital approximately every 5 years.
Reap the benefits of investment in Internal Mutual Funds with Gainn Fintech
In conclusion, diversifying your portfolio by investing in India’s top International Mutual Funds for Long-Term Growth offers a strategic approach to tapping into global markets and enhancing your investment returns.
With diverse options available, investors can select funds tailored to their preferences, whether based on geographic regions, sectors, or investment methodologies aligned with their financial objectives and risk appetite.
However, conducting comprehensive research and risk assessment is essential before venturing into foreign mutual funds. Evaluating factors such as historical performance, fund management expertise, expenses, and risk profiles empowers investors to make informed decisions, leveraging the growth potential of global markets while mitigating associated risks.
By navigating these considerations prudently, investors can position themselves to capitalise on the opportunities presented by international investment avenues.
Gainn Fintech simplifies mutual fund investing, offering an effortless, rapid, and convenient experience. With our cutting-edge digital platform, we can provide access to nearly all categories and schemes within the Indian mutual fund industry.
Our world-class solutions empower investors to overcome the challenges associated with mutual fund investing, ensuring a seamless journey toward achieving their financial goals.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. The information is based on various secondary sources on the internet and is subject to change. Please consult with a financial expert before making investment decisions.
