An international mutual fund is an investment option that allows investors to geographically diversify their portfolio all while paying taxes in their home country as per their tax slabs. Sounds great, right?
In this blog, we’ll help you understand how you can invest in the best international mutual funds using Cube Wealth. Let’s jump right into it by learning more about international mutual funds. You can consult a Cube Wealth Coach or download the Cube Wealth App.
What Are International Mutual Funds?
An international mutual fund is an equity fund that invests in the shares of leading international companies like Tesla, Facebook, Apple, Amazon, Netflix, Google, etc. from around the world.
Broadly speaking, international funds may follow two investment strategies:
- Direct: the fund manager builds a portfolio of international stocks with which they aim to generate long term returns.
- Master-feeder: This follows a two-tier structure. Tier #2 consists of the feeder fund that doesn’t invest in any stock or debt instrument on its own. Instead, it invests in the master fund.
Tier #1 consists of the master fund whose fund manager handles the investments. This is the fund that generates the returns and distributes it across the feeder funds.
Read this blog to know more about Feeder funds
How To Invest In International Mutual Funds From India?
Using the Cube Wealth app is the smartest and most reliable way to invest in the best international mutual funds. Cube Wealth gives you access to a curated list of international mutual funds every month.
These best international mutual funds are handpicked by Cube Wealth’s mutual fund advisor, Wealth First. They have a track record of beating the market by ~50%.
But there’s more. Cube Wealth further simplifies mutual fund investments with 2 convenient investment options:
Cube Wealth makes it easier for investors to start a SIP according to their risk level and goals with these options:
1. QuickSIP
2. SuperSIP
- Change your SIP date
- Adjust your SIP amount
- Snooze your SIP payment
Download the Cube Wealth app to know more about investing in the best international mutual funds from India.
Best International Mutual Funds Currently Being Recommended On Cube Wealth
1. Edelweiss Greater China Equity Off-shore Fund
- 3-year returns: 24.18%
- 5-year returns: 26.36%
2. Franklin India Feeder - Franklin U.S. Opportunities Fund
- 3-year returns: 25.91%
- 5-year returns: 21.17%
3. Invesco Pan European Equity Fund
- 3-year returns: 1.46%
- 5-year returns: 5.66%
4. Nippon India Japan Equity Fund
- 3-year returns: 9.34%
- 5-year returns: 10.09%
5. PGIM India Global Equity Opportunities Fund
- 3-year returns: 31.62%
- 5-year returns: 23.30%
*Note: While we update our blogs regularly, download the Cube Wealth app for the latest facts & figures of international mutual funds.
Benefits Of Investing In International Mutual Funds
1. Relatively Safer Than Direct Equity
International mutual funds are widely considered to be a safer alternative to invest in direct international equity. However, these funds still carry an above-average risk that you must be aware of.
Download the Cube Wealth app to understand if you should invest in international mutual funds.
2. Geographical Diversification
Every country has its own economic cycle that swings upwards based on various factors. International funds allow you to hedge against currency fluctuations in your own country. This helps more as you invest in countries which have more powerful currencies than your own country’s currency. You can consult a Cube Wealth Coach or download the Cube Wealth App.
Read this blog to learn more about the benefits of International & Global mutual funds
3. Lucrative Returns
Overall, major stock markets around the world have been known to grow over a period of 10+ years.
|
Index
|
2010
|
2015
|
2020
|
2021
|
|
S&P 500
|
1,064
|
2,126
|
2,129
|
3,886
|
|
Sensex
|
17,117
|
28,463
|
35,843
|
51,411
|
|
FTSE 250
|
9,276
|
17,499
|
17,247
|
21,031
|
|
NIKKEI 225
|
10,553
|
19,137
|
22,715
|
29,388
|
Note: The above-mentioned facts & figures comprise publicly available data on Google as of 08-02-2021.
Moreover, certain international stock markets like the S&P 500 host the biggest companies in the world like Google, Amazon, Tesla, Microsoft, etc. that have been known to perform better than the biggest companies of other countries.
Read this blog to know more about investing in the US stock market from India
FAQs On International Funds
1. Can I invest in foreign mutual funds from India?
Ans. Yes, you can invest in foreign or “international” mutual funds using a trustworthy app like Cube Wealth. International funds offer benefits like lucrative returns, geographical diversification, etc. but carry risks like high volatility.
Download the Cube Wealth app to know if your portfolio can benefit from international mutual fund investments.
2. Can I invest in international mutual funds?
Ans. An Indian citizen with an Indian bank account can invest in international mutual funds using a reliable app like Cube Wealth in 5 easy steps:
3. How can I invest overseas from India?
Ans. The Cube Wealth app helps you invest in overseas stocks, mutual funds, and ETFs in 3 ways:
1. International and Global mutual funds
2. US stocks & ETFs (DIY) for as low as $1
3. US stocks & ETFs (Advisory) for as low as $1
4. Global stocks (Advisory) for as low as $1
Conclusion
Investing in international mutual funds from India offers Indian investors an avenue to diversify their portfolios and access global markets. These funds provide exposure to a wide range of international assets, including stocks, bonds, and other securities, helping investors spread risk and potentially benefit from the growth of international markets.
Before investing in international mutual funds, it is essential to consider several factors, including your investment goals, risk tolerance, and the fund's objectives. Research different mutual fund options, look for funds managed by reputable asset management companies, and ensure they have a track record of delivering consistent returns. You can consult a Cube Wealth Coach or download the Cube Wealth App.
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