Good news for investors looking to go global. Some international mutual funds have started accepting fresh investments again. You can invest through SIP, lump sum, or both.
This is a great opportunity to put your money in global markets like the US, Europe, Japan, and Taiwan. Experts suggest adding international funds to your portfolio to reduce risk and improve returns over time.
Why International Funds Are Not Always Available
International mutual funds are not open all the time. This is because the RBI sets a limit on how much Indian mutual funds can invest in foreign stocks.
Once this limit is reached, fund houses stop accepting new investments. That’s why these opportunities open only from time to time.
These International Funds Are Currently Open
Right now, some mutual fund schemes are accepting investments. These include:
Axis Global Equity Alpha FoF
Axis Global Innovation FoF
Baroda BNP Paribas Aqua FoF
Franklin Asian Equity
Kotak Global Emerging Markets Overseas Equity Omni FoF
Nippon India Taiwan Equity
Edelweiss ASEAN Equity Offshore
Investment Limit and Recent Performance
Investors can invest up to ₹2 lakh per month per PAN in international mutual funds.
These funds have delivered strong performance in the past year. Funds focused on Taiwan and semiconductor companies have given especially high returns. US-focused funds have also performed well, mainly due to the rise in technology stocks.
How Have Returns Been Over Time?
Over the last three years, many international funds have given returns of around 20%. However, five-year returns have been lower.
Performance also depends on the region. For example, funds investing in China have not done well recently. On the other hand, funds focused on the US market have shown better results.
Benefits of Investing in International Funds
The biggest advantage is diversification. When one market is down, another may perform well.
In the past 1.5 to 2 years, the Indian market has not performed strongly. Meanwhile, markets like the US, Japan, and South Korea have done better.
Investors who invested only in Indian stocks saw lower returns. But those who added international funds to their portfolio managed to earn better returns and reduce risk.
