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Global Mutual Funds

Updated on January 22, 2020 , 149 views

What are Global Mutual Funds?

As described above, a Global Mutual Fund is an investment tool that allows you to invest in international markets. Simply put, a Global Mutual Fund can be described as a mutual/exchange-traded fund which primarily invests in companies/enterprises which are spread across the world.

Are Global Mutual Funds the same as International Funds?

No! And here is an important distinction that every investor should understand. An International mutual fund only invests in foreign markets and has no investment in the investor’s home market.

A Global Fund, on the other hand, will invest in all available markets; including the investor’s own country.

For instance, if there is a trading company which invests in markets across Asia and the Middle Eastern regions, and still has a certain investment set aside for the Indian market, then it would function exactly like a Global Mutual Fund. If, however, this trading company were to invest in all countries across the globe except for India, we would call it an international fund.

Benefits of Investing in Global Mutual Funds

Global Mutual Funds are great for investors who are looking to diversify their portfolio. Diversification helps in risk management, and by Investing in multiple markets you can earn high profits. The time period for investing in Global Mutual Funds is typically more, hence making it a suitable candidate for long-term investments.

Features of Global Mutual Funds

Some of the distinguishing features of Global Mutual Fund are highlighted below:

  1. Diversification
  2. Risk factor
  3. Currency factor
  4. Hedge
  5. Returns
  6. Term

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*Funds having net assets of 10 crore of more and sorted on last three year return.

1. Principal Global Opportunities Fund

The investment objective of the Scheme is to provide long term capital appreciation by predominantly investing in overseas mutual fund schemes, and a certain portion of its corpus in Money Market Securities and/or units of Money Market / Liquid Schemes of Principal Mutual Fund.

Principal Global Opportunities Fund is a Equity - Global fund was launched on 29 Mar 04. It is a fund with High risk and has given a CAGR/Annualized return of 7.9% since its launch.  Ranked 8 in Global category.  Return for 2019 was 32.5% , 2018 was -15.5% and 2017 was 30.9% .

Below is the key information for Principal Global Opportunities Fund

Principal Global Opportunities Fund
Growth
Launch Date 29 Mar 04
NAV (24 Jan 20) ₹33.0688 ↓ -0.07   (-0.21 %)
Net Assets (Cr) ₹17 on 31 Dec 19
Category Equity - Global
AMC Principal Pnb Asset Mgmt. Co. Priv. Ltd.
Rating
Risk High
Expense Ratio 1.46
Sharpe Ratio 1.53
Information Ratio 0
Alpha Ratio 0
Min Investment 10,000
Min SIP Investment 2,000
Exit Load 0-1 Years (1%),1 Years and above(NIL)

Growth of 10,000 investment over the years.

DateValue
31 Dec 14₹10,000
31 Dec 15₹9,035
31 Dec 16₹9,946
31 Dec 17₹13,020
31 Dec 18₹11,007
31 Dec 19₹14,580

Principal Global Opportunities Fund SIP Returns

   
My Monthly Investment:
Investment Tenure:
Years
Expected Annual Returns:
%
Total investment amount is ₹300,000
expected amount after 5 Years is ₹376,357.
Net Profit of ₹76,357
Invest Now

Returns for Principal Global Opportunities Fund

Returns up to 1 year are on absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 24 Jan 20

DurationReturns
1 Month 3.3%
3 Month 11.3%
6 Month 13.8%
1 Year 23.2%
3 Year 12.2%
5 Year 8.1%
10 Year
15 Year
Since launch 7.9%
Historical performance (Yearly) on absolute basis
YearReturns
2018 32.5%
2017 -15.5%
2016 30.9%
2015 10.1%
2014 -9.6%
2013 -2.6%
2012 5.4%
2011 21.5%
2010 -2.6%
2009 11.5%
Fund Manager information for Principal Global Opportunities Fund
NameSinceTenure
Rajat Jain1 Oct 0513.34 Yr.

Data below for Principal Global Opportunities Fund as on 31 Dec 19

Equity Sector Allocation
SectorValue
Technology26.02%
Industrials20.91%
Financial Services13.66%
Consumer Cyclical13.3%
Health Care7.56%
Basic Materials5.46%
Communication Services4.59%
Consumer Defensive3.87%
Energy2.5%
Utility1.24%
Real Estate0.8%
Asset Allocation
Asset ClassValue
Cash0.08%
Equity99.92%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
Principal Origin Glb Smlr Coms I Acc USD
Investment Fund | -
101%₹17 Cr131,290
Net Receivable / Payable
Net Current Assets | -
2%₹0 Cr
Treps 02-Dec-2019
CBLO/Reverse Repo | -
1%₹0 Cr
364 DTB 09012020
Sovereign Bonds | -
0%₹0 Cr1,000

2. ICICI Prudential Global Stable Equity Fund

ICICI Prudential Global Stable Equity Fund (the Scheme) is an open-ended fund of funds scheme that seeks to provide adequate returns by investing in the units of one or more overseas mutual fund schemes, which have the mandate to invest globally. Currently the Scheme intends to invest in the units/shares of Nordea 1 – Global Stable Equity Fund – Unhedged (N1 – GSEF - U). The fund manager may also invest in one or more other overseas mutual fund schemes, with similar investment policy/fundamental attributes and risk profile and is in accordance with the investment strategy of the Scheme. The Scheme may also invest a certain portion of its corpus in domestic money market securities and/or money market/liquid schemes of domestic mutual funds including that of ICICI Prudential Mutual Fund, in order to meet liquidity requirements from time to time.

ICICI Prudential Global Stable Equity Fund is a Equity - Global fund was launched on 13 Sep 13. It is a fund with High risk and has given a CAGR/Annualized return of 8.9% since its launch.  Ranked 10 in Global category.  Return for 2019 was 23% , 2018 was -0.9% and 2017 was 7.2% .

Below is the key information for ICICI Prudential Global Stable Equity Fund

ICICI Prudential Global Stable Equity Fund
Growth
Launch Date 13 Sep 13
NAV (23 Jan 20) ₹17.16 ↓ -0.09   (-0.52 %)
Net Assets (Cr) ₹95 on 31 Dec 19
Category Equity - Global
AMC ICICI Prudential Asset Management Company Limited
Rating
Risk High
Expense Ratio 1.92
Sharpe Ratio 1.68
Information Ratio 0
Alpha Ratio 0
Min Investment 5,000
Min SIP Investment 1,000
Exit Load 0-3 Months (3%),3-18 Months (1%),18 Months and above(NIL)

Growth of 10,000 investment over the years.

DateValue
31 Dec 14₹10,000
31 Dec 15₹10,503
31 Dec 16₹11,265
31 Dec 17₹12,071
31 Dec 18₹11,967
31 Dec 19₹14,714

ICICI Prudential Global Stable Equity Fund SIP Returns

   
My Monthly Investment:
Investment Tenure:
Years
Expected Annual Returns:
%
Total investment amount is ₹300,000
expected amount after 5 Years is ₹376,357.
Net Profit of ₹76,357
Invest Now

Returns for ICICI Prudential Global Stable Equity Fund

Returns up to 1 year are on absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 24 Jan 20

DurationReturns
1 Month 1.2%
3 Month 7.1%
6 Month 12.8%
1 Year 16.4%
3 Year 9.1%
5 Year 8.8%
10 Year
15 Year
Since launch 8.9%
Historical performance (Yearly) on absolute basis
YearReturns
2018 23%
2017 -0.9%
2016 7.2%
2015 7.3%
2014 5%
2013 11.8%
2012
2011
2010
2009
Fund Manager information for ICICI Prudential Global Stable Equity Fund
NameSinceTenure
Rohan Maru19 Sep 136.29 Yr.
Priyanka Khandelwal30 Jun 172.51 Yr.

Data below for ICICI Prudential Global Stable Equity Fund as on 31 Dec 19

Equity Sector Allocation
SectorValue
Health Care29.34%
Communication Services13.42%
Technology12.28%
Consumer Defensive9.9%
Industrials7.88%
Financial Services7.47%
Consumer Cyclical5.26%
Real Estate4.33%
Utility3%
Energy1.25%
Basic Materials0.52%
Asset Allocation
Asset ClassValue
Cash4.33%
Equity95.67%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
Nordea 1 - Global Stable Equity Z USD
Investment Fund | -
97%₹90 Cr410,376
Treps
CBLO/Reverse Repo | -
4%₹3 Cr
Net Current Assets
Net Current Assets | -
0%₹0 Cr

3. Sundaram Global Advantage Fund

To achieve capital appreciation by investing in units of overseas mutual funds and exchange traded funds, domestic money market instruments. Income generation may only be a secondary objective.

Sundaram Global Advantage Fund is a Equity - Global fund was launched on 24 Aug 07. It is a fund with High risk and has given a CAGR/Annualized return of 5% since its launch.  Ranked 28 in Global category.  Return for 2019 was 17.6% , 2018 was -8.1% and 2017 was 19.8% .

Below is the key information for Sundaram Global Advantage Fund

Sundaram Global Advantage Fund
Growth
Launch Date 24 Aug 07
NAV (23 Jan 20) ₹18.3708 ↓ -0.03   (-0.14 %)
Net Assets (Cr) ₹36 on 31 Dec 19
Category Equity - Global
AMC Sundaram Asset Management Company Ltd
Rating
Risk High
Expense Ratio 1.41
Sharpe Ratio 1.11
Information Ratio -0.96
Alpha Ratio -4.34
Min Investment 5,000
Min SIP Investment 100
Exit Load 0-12 Months (1%),12 Months and above(NIL)

Growth of 10,000 investment over the years.

DateValue
31 Dec 14₹10,000
31 Dec 15₹8,582
31 Dec 16₹9,681
31 Dec 17₹11,595
31 Dec 18₹10,657
31 Dec 19₹12,528

Sundaram Global Advantage Fund SIP Returns

   
My Monthly Investment:
Investment Tenure:
Years
Expected Annual Returns:
%
Total investment amount is ₹300,000
expected amount after 5 Years is ₹349,120.
Net Profit of ₹49,120
Invest Now

Returns for Sundaram Global Advantage Fund

Returns up to 1 year are on absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 24 Jan 20

DurationReturns
1 Month 2.1%
3 Month 7.7%
6 Month 9.1%
1 Year 13.3%
3 Year 8.2%
5 Year 5.2%
10 Year
15 Year
Since launch 5%
Historical performance (Yearly) on absolute basis
YearReturns
2018 17.6%
2017 -8.1%
2016 19.8%
2015 12.8%
2014 -14.2%
2013 -3.6%
2012 9.1%
2011 18.9%
2010 -1.9%
2009 10.8%
Fund Manager information for Sundaram Global Advantage Fund
NameSinceTenure
S Krishnakumar30 Dec 171.92 Yr.
Rohit Seksaria30 Dec 171.92 Yr.

Data below for Sundaram Global Advantage Fund as on 31 Dec 19

Equity Sector Allocation
SectorValue
Asset Allocation
Asset ClassValue
Cash100%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
Reverse Repo
CBLO/Reverse Repo | -
76%₹24 Cr
Cash And Other Net Curent Assets
Net Current Assets | -
24%₹7 Cr
Fidelity Asia Focus A-Dis-USD
Investment Fund | -
₹0 Cr00
↓ -94,335
Xtrackers MSCI EM Asia Swap ETF 1C
- | XMAI
₹0 Cr00
↓ -15,880
Templeton Asian Growth A(Ydis)USD
Investment Fund | -
₹0 Cr00
↓ -14,619
Xtrackers MSCI EM LA Swap ETF 1C
- | XMLA
₹0 Cr00
↓ -5,884

4. Kotak Global Emerging Market Fund

The investment objective of the scheme is to provide long-term capital appreciation by investing in an overseas mutual fund scheme that invests in a diversified portfolio of securities as prescribed by SEBI from time to time in global emerging markets.

Kotak Global Emerging Market Fund is a Equity - Global fund was launched on 26 Sep 07. It is a fund with High risk and has given a CAGR/Annualized return of 4.6% since its launch.  Ranked 17 in Global category.  Return for 2019 was 21.4% , 2018 was -14.4% and 2017 was 30.4% .

Below is the key information for Kotak Global Emerging Market Fund

Kotak Global Emerging Market Fund
Growth
Launch Date 26 Sep 07
NAV (23 Jan 20) ₹17.314 ↓ -0.21   (-1.22 %)
Net Assets (Cr) ₹34 on 31 Dec 19
Category Equity - Global
AMC Kotak Mahindra Asset Management Co Ltd
Rating
Risk High
Expense Ratio 1.84
Sharpe Ratio 1.71
Information Ratio -0.4
Alpha Ratio 6.86
Min Investment 5,000
Min SIP Investment 1,000
Exit Load 0-1 Years (1%),1 Years and above(NIL)

Growth of 10,000 investment over the years.

DateValue
31 Dec 14₹10,000
31 Dec 15₹9,539
31 Dec 16₹9,422
31 Dec 17₹12,285
31 Dec 18₹10,517
31 Dec 19₹12,767

Kotak Global Emerging Market Fund SIP Returns

   
My Monthly Investment:
Investment Tenure:
Years
Expected Annual Returns:
%
Total investment amount is ₹300,000
expected amount after 5 Years is ₹340,450.
Net Profit of ₹40,450
Invest Now

Returns for Kotak Global Emerging Market Fund

Returns up to 1 year are on absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 24 Jan 20

DurationReturns
1 Month 2.6%
3 Month 7.8%
6 Month 9.7%
1 Year 18%
3 Year 9.2%
5 Year 4.8%
10 Year
15 Year
Since launch 4.6%
Historical performance (Yearly) on absolute basis
YearReturns
2018 21.4%
2017 -14.4%
2016 30.4%
2015 -1.2%
2014 -4.6%
2013 -2.6%
2012 15.3%
2011 23.9%
2010 -4.4%
2009 10.4%
Fund Manager information for Kotak Global Emerging Market Fund
NameSinceTenure
Arjun Khanna9 May 190.56 Yr.

Data below for Kotak Global Emerging Market Fund as on 31 Dec 19

Equity Sector Allocation
SectorValue
Financial Services6.04%
Technology3.82%
Consumer Cyclical3.13%
Communication Services2.99%
Energy1.86%
Basic Materials1.76%
Consumer Defensive1.67%
Industrials1.34%
Real Estate0.76%
Health Care0.73%
Utility0.65%
Asset Allocation
Asset ClassValue
Cash4.24%
Equity24.75%
Other71.01%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
Signature Emerging Markets Fund
- | -
71%₹23 Cr132,233
↑ 132,233
iShares MSCI EM ETF USD Dist
- | IEEM
25%₹8 Cr27,620
Net Current Assets/(Liabilities)
Net Current Assets | -
4%₹1 Cr

5. DSP BlackRock Global Allocation Fund

The primary investment objective of the Scheme is to seek capital appreciation by investing predominantly in units of BlackRock Global Funds - Global Allocation Fund (BGF - GAF). The Scheme may also invest in the units of other similar overseas mutual fund schemes which may constitute a significant part of its corpus. The Scheme may also invest a certain portion of its corpus in money market securities and/ or money market/liquid schemes of DSP BlackRock Mutual Fund, in order to meet liquidity requirements from time to time. However, there is no assurance that the investment objective of the Scheme will be realized. It shall be noted ‘similar overseas mutual fund schemes’shall have investment objective, investment strategy and risk profile/consideration similar to those of BGF – GAF

DSP BlackRock Global Allocation Fund is a Equity - Global fund was launched on 21 Aug 14. It is a fund with High risk and has given a CAGR/Annualized return of 5.8% since its launch.  Ranked 26 in Global category.  Return for 2019 was 18.3% , 2018 was -1.3% and 2017 was 4.9% .

Below is the key information for DSP BlackRock Global Allocation Fund

DSP BlackRock Global Allocation Fund
Growth
Launch Date 21 Aug 14
NAV (23 Jan 20) ₹13.6065 ↓ -0.04   (-0.30 %)
Net Assets (Cr) ₹28 on 31 Dec 19
Category Equity - Global
AMC DSP BlackRock Invmt Managers Pvt. Ltd.
Rating
Risk High
Expense Ratio 1.93
Sharpe Ratio 1.56
Information Ratio 0
Alpha Ratio 0
Min Investment 1,000
Min SIP Investment 500
Exit Load 0-12 Months (1%),12 Months and above(NIL)

Growth of 10,000 investment over the years.

DateValue
31 Dec 14₹10,000
31 Dec 15₹10,165
31 Dec 16₹10,614
31 Dec 17₹11,138
31 Dec 18₹10,991
31 Dec 19₹13,000

DSP BlackRock Global Allocation Fund SIP Returns

   
My Monthly Investment:
Investment Tenure:
Years
Expected Annual Returns:
%
Total investment amount is ₹300,000
expected amount after 5 Years is ₹357,992.
Net Profit of ₹57,992
Invest Now

Returns for DSP BlackRock Global Allocation Fund

Returns up to 1 year are on absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 24 Jan 20

DurationReturns
1 Month 2%
3 Month 6.2%
6 Month 10.2%
1 Year 14.4%
3 Year 7.1%
5 Year 6.2%
10 Year
15 Year
Since launch 5.8%
Historical performance (Yearly) on absolute basis
YearReturns
2018 18.3%
2017 -1.3%
2016 4.9%
2015 4.4%
2014 1.7%
2013
2012
2011
2010
2009
Fund Manager information for DSP BlackRock Global Allocation Fund
NameSinceTenure
Kedar Karnik17 Jul 163.46 Yr.
Laukik Bagwe21 Aug 145.36 Yr.
Jay Kothari21 Aug 145.36 Yr.

Data below for DSP BlackRock Global Allocation Fund as on 31 Dec 19

Equity Sector Allocation
SectorValue
Technology8.99%
Health Care8.56%
Financial Services6.92%
Communication Services6.67%
Industrials6.43%
Consumer Cyclical5.72%
Consumer Defensive4.3%
Energy2.67%
Basic Materials1.95%
Utility1.86%
Real Estate1.3%
Asset Allocation
Asset ClassValue
Cash17.63%
Equity55.63%
Debt25.29%
Other1.46%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
BGF Global Allocation I2 USD
Investment Fund | -
97%₹27 Cr57,333
Treps / Reverse Repo Investments / Corporate Debt Repo
CBLO/Reverse Repo | -
3%₹1 Cr
Net Receivables/Payables
Net Current Assets | -
0%₹0 Cr

Global Mutual Fund Taxation

It is important to remember that all international funds are taxed as if they were non-Equity Funds. Hence, gains from international funds are taxed at the marginal rate if they are sold within three years from the date of purchase. The gains realized from the sale after three years are eligible for indexation benefits in the year of sale (20% with indexation and 10% without indexation).

Global Funds Structure

Depending on the sector that the funds invest in and the mode of investing, global funds can be structured according to the following ways:

Depending on the mode of investment

  1. Funds that invest directly These are funds which are directly handled by the local fund manager. Instead of relying on a fund manager who lives offshore, your local fund manager makes sure to look after your portfolio themselves.
  2. Funds that invest indirectly These funds are known either as feeder funds because they pool in money from local investors and then transfer the corpus to the parent fund which is managed offshore or pure fund of funds these are funds that invest the investors money in a basket of offshore funds.
  3. Funds that invest only a portion in foreign equity

These funds have a mix of both domestic and global funds. Hence, they are better choices for the moderate risk taker as they provide limited exposure to foreign equities while maintaining focus on the domestic market and thus enhance your portfolios tax efficiency.

Depending on the region of investment

  1. Region-specific funds When opting for global funds, you can choose to invest only in a specific region or country. This works well if the region/country of your choice has the potential for high growth, but to achieve this you would need a deep understanding of the region to capture the growth and exit at the right time.
  2. Funds that invest across the globe These funds are more flexible as they are not restricted to a particular region and can offer more diversified exposure to investors. They are generally handled by fund managers who have the necessary expertise in handling an investors portfolio and can identify and monitor opportunities worldwide.

Depending on theme

These funds invest in specific themes or growth opportunities across the globe. You can choose to invest in broad themes or sectors like commodities, energy, gold, agriculture, mining, and others. These funds are great to invest in when there is a growth period, and you can have access to segments which may not be available for investment in the domestic market. However, make sure that your portfolio is not overloaded with such investments as restricted exposure to a single theme can put investors at risk.

Why should you invest in Global Mutual Funds?

Global Funds can be a great asset to your investment portfolio. The pros and cons of this are listed below:

Pros

  • Since you are investing in Mutual Funds from a different country, your investments are insulated against the market ups and downs in your own country
  • Investing in mutual funds in the fastest growing markets across the globe will help you earn rich rewards
  • Exposure to foreign currency can help you earn more and meet your future requirements

Cons

  • Your investments will be subject to geopolitical and socio-economic factors in the country or region where you invest. So, market risks cannot be negated completely
  • Since you will be investing in rupees and the exposure will be in a foreign currency, the fluctuations in the exchange rate for that particular currency can either boost or hurt your fund returns.
Disclaimer:
All efforts have been made to ensure the information provided here is accurate. However, no guarantees are made regarding correctness of data. Please verify with scheme information document before making any investment.
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