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What are International Mutual Funds?
Mutual funds that invest in foreign companies are known as international mutual funds. These funds are also known as international or global funds. Investing in these carries a greater risk of loss, but it also has the potential for higher returns. Investors now want to adopt more about foreign markets and how to profit from them. As a result, a slew of foreign funds with varying portfolio compositions and structures have been introduced. International mutual funds invest mainly in equity, equity-related instruments, and debt instruments issued by companies not listed in India.
Types of international mutual fund:
Global Funds
Global funds invest in large enterprises all over the world. It may also involve the investor’s country of residence. International mutual funds, on the other hand, invest in companies all over the world, except the investor’s home country.
Regional Funds
Regional funds invest everywhere in the world in companies from a particular geographic area.
Country Funds
A country funds are when an individual invests in a fund that is only open in one foreign country and nowhere else. This is one of the simplest funds to invest in abroad because the data is not distributed through many countries.
Global Sector Funds
Global sector funds invest in companies from all over the world that are part of a particular industry. The main goal is to obtain insight into a particular industry.
List of 8 Best International Funds for 2021
| Fund Name | Returns (%) 1 year | 3 Years CAGR Returns % |
|---|---|---|
| Edelweiss Greater China Equity | 60.8 | 25.77 |
| PMG India Global Equity Opportunities Fund | 65.24 | 32.77 |
| Franklin India Feeder Franklin US Opportunities Fund | 50.81 | 27.08 |
| Nippon India US Equity Opportunities Fund | 55.45 | 26.58 |
| DSP World Mining Fund | 84.5 | 19.66 |
| Aditya Birla Sun Life International | 41.12 | 16.99 |
| ICICI Prudential US Bluechip Equity Fund | 43.97 | 24.71 |
| Principal Global Opportunities Fund. | 81.55 | 15.69 |
Edelweiss Greater China Equity Off-shore Fund
Since its inception, the Edelweiss Greater China Equity Off-shore Fund has generated an average annual return of 18.63 percent. JP Morgan Fund’s Greater China Fund is part of a fund-of-funds scheme. Equity fund that mainly invests in companies based in the Greater China Region (China, Hong Kong, and Taiwan) or that conduct their primary business activities there.
Tax Implications
If you redeem before one year, your returns will be taxed at 15%. On returns of Rs 1 lakh or more in a financial year, you must pay a 10% LTCG tax after one year.
PGIM India Global Equity Opportunities Fund
PGIM India Global Equity Opportunities Fund Direct-Growth is an international scheme operated by PGIM India Mutual Fund under the Equity category. The scheme, which has an AUM of 6527 crores and is run by Alok Agarwal, was launched on January 1, 2013. The scheme aims to generate long-term capital growth by investing primarily in units of overseas mutual funds that concentrate on agriculture and/or affiliated/allied sectors’ anticipated growth.
Franklin India Feeder
The fund primarily invests in units of Franklin U.S. Opportunities Fund, an overseas Franklin Templeton mutual fund that primarily invests in shares in the United States of America, in order to provide capital appreciation. The fund primarily invests in small, medium, and large-cap U.S. companies with high growth potential in a variety of industries.
Nippon India US Equity Opportunities Fund
Invests mainly in high-quality, high-growth stocks listed on recognized US stock exchanges. Morningstar Investment Advisor India Private Ltd. provides research support. The scheme aims to provide investors with long-term capital appreciation by investing mainly in equity and equity-related securities of companies listed on recognized stock exchanges in the United States, with the remainder in debt and money market securities in India.
DSP World Mining Fund
The fund’s primary holdings will be BlackRock Global Funds – World Mining Fund units. A large portion of the fund’s assets will also be invested in units of other related overseas mutual fund schemes. The DSP World Mining Fund’s direct strategy has an expense ratio of 1.53 percent.
Aditya Birla Sun Life International Equity Fund -Plan A
The scheme will only invest in stocks from other countries. The plan’s goal is to build a portfolio that is geographically diversified, to take advantage of low correlation between countries, and to build a portfolio of high quality – high growth. Without any market capitalization or industry bias, it employs a hybrid technique with top-down and bottom-up approaches.
ICICI Prudential US Bluechip Equity Fund
Invests in shares and equity-linked securities firms that are publicly traded in the United States. Invests in stocks of large-cap firms that are part of the S&P index. Invests in equity and equity-linked securities of companies that are publicly traded on recognized US stock exchanges.
Principal Global Opportunities Fund.
The Scheme’s investment objective is to provide long-term capital appreciation by investing primarily in overseas mutual fund schemes and a portion of its corpus in Money Market Securities or units of Principal Mutual Fund’s Money Market/Liquid Schemes. The scheme aims to develop a high-quality portfolio of overseas-listed equity and equity-related instruments. Out of the list of approved shares, it will seek to find qualifying stocks that can provide long-term capital appreciation.
Disclaimer: The views and investment tips expressed by authors or employees of Greynium Information Technologies, should not be construed as investment advice to buy or sell stocks, gold, currency or other commodities.
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