Benefits of investing in International Funds

Published : 03 Mar 2023

Investment in domestic companies is done through equity mutual funds available to you like large cap, mid cap, small cap, multi cap, and more. Similarly, if investors want to invest in companies not listed in India, one option available to them is International Mutual Funds.

Geographical Diversification

Diversification is the biggest advantage offered by international funds. Different economies perform differently in a given period of time.  international funds help you leverage the opportunities in other markets while the Indian economy is not able to generate good returns for you

Opportunity to Become Owners of Global Market Leaders

By investing in international funds, you become owners in some of the biggest businesses in the world like Facebook, Adidas, Apple. when you invest in these companies through international funds, you get a part in the profit made by these companies.  

Currency Diversification

The Rupee has been depreciating against the dollar for a long time. You can turn this depreciation in the rupee to your advantage by investing in international funds. When you invest in international funds you get exposure in foreign currency through investing in rupees. Any appreciation in the value of the foreign currency or any depreciation in the home currency will increase your returns.

Cost-effectiveness of your Investment Portfolio

According to many experts, Indian markets have already hit a high. Hence, by carefully selecting the right fund, you can create a cost-effective portfolio.

Low cost of transaction

As more and more investors shift to international investment options, many fund houses and AMCs are launching mutual fund schemes to invest specifically in global markets. This reduces your overall transaction costs by eliminating expenses like transfer fees, foreign exchange conversion fees, annual maintenance charges, etc.

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