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Table of Contents
- Background of International Mutual Funds in India
- How to Pick an International Mutual Fund?
- Best International Mutual Funds to Invest in FY 23 - 24
- Types of International Mutual Funds
- Why to Invest in International Mutual Funds?
- Taxation of International Mutual Funds
- How to Invest in International Mutual Fund Online?
- FAQs
- 1. What are the benefits of investing in international mutual funds?
- 2. Can I invest in companies that post lower growth than India?
- 3. What is the Franklin India Feeder?
- 4. What is the BlackRock World Mining Fund?
- 5. Are earnings from international mutual funds taxed?
- 6. What is the main risk of the international mutual fund?
- 7. Who should invest in a foreign mutual fund?
Top 8 Equity - Global Funds
- Principal Global Opportunities Fund
- DSP BlackRock World Mining Fund
- DSP BlackRock World Energy Fund
- ICICI Prudential US Bluechip Equity Fund
- Invesco India Feeder- Invesco Pan European Equity Fund
- Aditya Birla Sun Life Commodity Equities Fund - Global Agri Plan
- Invesco India Feeder- Invesco Global Equity Income Fund
- Edelweiss ASEAN Equity Off-shore Fund
8 Best International Mutual Funds 2023
International Mutual Funds are funds that invest in foreign markets except for the investor’s country of residence. On the other hand, global fund invest in foreign markets as well as the investor’s country of residence. International Mutual Funds are also known as “foreign fund” and are a form of the ‘fund of funds’ strategy.
International Mutual Funds have become an attractive investment option for investors in the past few years due to the volatile local markets and an Economy going through its ups and downs.
Background of International Mutual Funds in India
With the permission of Reserve Bank of India (RBI), International Mutual Funds opened up in India in 2007. Each fund is allowed to get a corpus of USD 500 million.
Master-Feeder Structure of International Mutual Funds
International Mutual Funds follow a master-feeder structure. A master-feeder structure is a three-tier structure where investors place their money in the feeder fund which then invests in the master fund. The master fund then invests the money in the Market. A feeder fund is based on-shore i.e. in India, whereas, the master fund is based off-shore (in a foreign geography like Luxembourg etc).
A master fund can have multiple feeder funds. For example,
How to Pick an International Mutual Fund?
There are certain things to be kept in mind while choosing a suitable fund.
Best International Mutual Funds to Invest in FY 23 - 24
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 Below is the key information for Principal Global Opportunities Fund Returns up to 1 year are on The primary investment objective of the Scheme is to seek capital appreciation by investing predominantly in the units of BlackRock Global Funds – World Mining Fund. The Scheme may, at the discretion of the Investment Manager, 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. DSP BlackRock World Mining Fund is a Equity - Global fund was launched on 29 Dec 09. It is a fund with High risk and has given a Below is the key information for DSP BlackRock World Mining Fund Returns up to 1 year are on The primary investment objective of the Scheme is to seek capital appreciation by investing predominantly in the units of BlackRock Global Funds – World Energy Fund and BlackRock Global Funds – New Energy Fund. The Scheme may, at the discretion of the Investment Manager, 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. DSP BlackRock World Energy Fund is a Equity - Global fund was launched on 14 Aug 09. It is a fund with High risk and has given a Below is the key information for DSP BlackRock World Energy Fund Returns up to 1 year are on The investment objective of ICICI Prudential US Bluechip Equity Fund is to provide long term capital appreciation to investors by primarily investing in equity and equity related securities (including ADRs/GDRs issued by Indian and foreign companies) of companies listed on New York Stock Exchange and/or NASDAQ. However, there can be no assurance that the investment objective of the Scheme will be realized. ICICI Prudential US Bluechip Equity Fund is a Equity - Global fund was launched on 6 Jul 12. It is a fund with High risk and has given a Below is the key information for ICICI Prudential US Bluechip Equity Fund Returns up to 1 year are on (Erstwhile Invesco India Pan European Equity Fund) To generate capital appreciation by investing predominantly in units of Invesco Pan European Equity Fund, an overseas equity fund which invests primarily in equity securities of European companies with an emphasis on larger companies.
The Scheme may, at the discretion of Fund Manager, also invest in units of
other similar Overseas Mutual Funds with similar objectives, strategy and
attributes which may constitute a significant portion of its net assets. Invesco India Feeder- Invesco Pan European Equity Fund is a Equity - Global fund was launched on 31 Jan 14. It is a fund with High risk and has given a Below is the key information for Invesco India Feeder- Invesco Pan European Equity Fund Returns up to 1 year are on The objective of the Scheme is to offer long term growth of capital, by investing in (1) stocks of Agri commodity companies, i.e., companies engaged in or focusing on the Agri business and/or (2) overseas mutual fund scheme(s) that have similar investment objectives. These securities could be issued in India or overseas. Aditya Birla Sun Life Commodity Equities Fund - Global Agri Plan is a Equity - Global fund was launched on 7 Nov 08. It is a fund with High risk and has given a Below is the key information for Aditya Birla Sun Life Commodity Equities Fund - Global Agri Plan Returns up to 1 year are on (Erstwhile Invesco India Global Equity Income Fund) To provide capital appreciation and/or income by investing predominantly
in units of Invesco Global Equity Income Fund, an overseas equity fund which invests primarily in equities of companies worldwide. The Scheme may, at the discretion of Fund Manager, also invest in units of other similar Overseas Mutual Funds with similar objectives, strategy and attributes which may constitute a significant portion of its net assets. Invesco India Feeder- Invesco Global Equity Income Fund is a Equity - Global fund was launched on 5 May 14. It is a fund with High risk and has given a Below is the key information for Invesco India Feeder- Invesco Global Equity Income Fund Returns up to 1 year are on The primary investment objective of the Scheme is to provide long term capital growth by investing predominantly in JPMorgan Funds – JF ASEAN Equity Fund, an equity fund which invests primarily in companies of countries which are members of the Association of South East Asian Nations (ASEAN). However, there can be no assurance that the investment objective of the Scheme will be realized. Edelweiss ASEAN Equity Off-shore Fund is a Equity - Global fund was launched on 1 Jul 11. It is a fund with High risk and has given a Below is the key information for Edelweiss ASEAN Equity Off-shore Fund Returns up to 1 year are on Fund NAV Net Assets (Cr) Min SIP Investment 3 MO (%) 6 MO (%) 1 YR (%) 3 YR (%) 5 YR (%) 2022 (%) Principal Global Opportunities Fund Growth ₹47.4362
↓ -0.04 ₹38 2,000 2.9 3.1 25.8 24.8 16.5 DSP BlackRock World Mining Fund Growth ₹17.3875
↓ -0.48 ₹181 500 18.4 30.3 16 25.6 16 12.2 DSP BlackRock World Energy Fund Growth ₹17.5316
↓ -0.10 ₹152 500 14.2 11.3 13.1 10 6.7 -8.6 ICICI Prudential US Bluechip Equity Fund Growth ₹49.2
↓ -0.42 ₹2,121 100 20.1 8.3 8.8 14.2 16.1 -7.1 Invesco India Feeder- Invesco Pan European Equity Fund Growth ₹14.7843
↓ -0.01 ₹36 500 20.3 22.1 8.8 10.2 6 1.6 Aditya Birla Sun Life Commodity Equities Fund - Global Agri Plan Growth ₹37.4085
↓ -0.26 ₹16 1,000 -0.9 -0.4 8.7 16.2 10.2 7.7 Invesco India Feeder- Invesco Global Equity Income Fund Growth ₹19.3879
↓ -0.12 ₹12 500 20.6 12.5 8.4 11.2 9.3 -2.1 Edelweiss ASEAN Equity Off-shore Fund Growth ₹25.681
↓ -0.24 ₹68 1,000 12.6 11.3 8.3 7 4.8 4.8 Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 31 Dec 21 10 crore of more and sorted on last one year return.
1. Principal Global Opportunities Fund
CAGR/Annualized return of 9.2% since its launch. Ranked 8 in Global category. . Principal Global Opportunities Fund
Growth Launch Date 29 Mar 04 NAV (31 Dec 21) ₹47.4362 ↓ -0.04 (-0.09 %) Net Assets (Cr) ₹38 on 30 Nov 21 Category Equity - Global AMC Principal Pnb Asset Mgmt. Co. Priv. Ltd. Rating ☆☆☆☆ Risk High Expense Ratio 2.1 Sharpe Ratio 2.31 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.
Date Value 31 Jan 18 ₹10,000 31 Jan 19 ₹8,743 31 Jan 20 ₹10,287 31 Jan 21 ₹12,437 Returns for Principal Global Opportunities Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 31 Dec 21 Duration Returns 1 Month 0% 3 Month 2.9% 6 Month 3.1% 1 Year 25.8% 3 Year 24.8% 5 Year 16.5% 10 Year 15 Year Since launch 9.2% Historical performance (Yearly) on absolute basis
Year Returns 2022 2021 2020 2019 2018 2017 2016 2015 2014 2013 Fund Manager information for Principal Global Opportunities Fund
Name Since Tenure Data below for Principal Global Opportunities Fund as on 30 Nov 21
Equity Sector Allocation
Sector Value Asset Allocation
Asset Class Value Top Securities Holdings / Portfolio
Name Holding Value Quantity 2. DSP BlackRock World Mining Fund
CAGR/Annualized return of 4.3% since its launch. Ranked 19 in Global category. Return for 2022 was 12.2% , 2021 was 18% and 2020 was 34.9% . DSP BlackRock World Mining Fund
Growth Launch Date 29 Dec 09 NAV (06 Feb 23) ₹17.3875 ↓ -0.48 (-2.67 %) Net Assets (Cr) ₹181 on 31 Dec 22 Category Equity - Global AMC DSP BlackRock Invmt Managers Pvt. Ltd. Rating ☆☆☆ Risk High Expense Ratio 1.18 Sharpe Ratio 0.36 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.
Date Value 31 Jan 18 ₹10,000 31 Jan 19 ₹9,598 31 Jan 20 ₹9,950 31 Jan 21 ₹14,236 31 Jan 22 ₹16,703 31 Jan 23 ₹20,531 Returns for DSP BlackRock World Mining Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 31 Dec 21 Duration Returns 1 Month 3.4% 3 Month 18.4% 6 Month 30.3% 1 Year 16% 3 Year 25.6% 5 Year 16% 10 Year 15 Year Since launch 4.3% Historical performance (Yearly) on absolute basis
Year Returns 2022 12.2% 2021 18% 2020 34.9% 2019 21.5% 2018 -9.4% 2017 21.1% 2016 49.7% 2015 -36% 2014 -21% 2013 -14.1% Fund Manager information for DSP BlackRock World Mining Fund
Name Since Tenure Jay Kothari 1 Mar 13 9.84 Yr. Data below for DSP BlackRock World Mining Fund as on 31 Dec 22
Equity Sector Allocation
Sector Value Basic Materials 93.65% Energy 1.7% Financial Services 0.81% Industrials 0.51% Asset Allocation
Asset Class Value Cash 2.94% Equity 97.05% Debt 0% Top Securities Holdings / Portfolio
Name Holding Value Quantity BGF World Mining I2
Investment Fund | -98% ₹177 Cr 295,811
↑ 1,184 Treps / Reverse Repo Investments / Corporate Debt Repo
CBLO/Reverse Repo | -2% ₹4 Cr Net Receivables/Payables
CBLO | -0% -₹1 Cr 3. DSP BlackRock World Energy Fund
CAGR/Annualized return of 4.3% since its launch. Ranked 29 in Global category. Return for 2022 was -8.6% , 2021 was 29.5% and 2020 was 0% . DSP BlackRock World Energy Fund
Growth Launch Date 14 Aug 09 NAV (06 Feb 23) ₹17.5316 ↓ -0.10 (-0.58 %) Net Assets (Cr) ₹152 on 31 Dec 22 Category Equity - Global AMC DSP BlackRock Invmt Managers Pvt. Ltd. Rating ☆☆ Risk High Expense Ratio 1.22 Sharpe Ratio -0.35 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.
Date Value 31 Jan 18 ₹10,000 31 Jan 19 ₹9,615 31 Jan 20 ₹9,740 31 Jan 21 ₹10,525 31 Jan 22 ₹11,701 31 Jan 23 ₹12,780 Returns for DSP BlackRock World Energy Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 31 Dec 21 Duration Returns 1 Month 7.6% 3 Month 14.2% 6 Month 11.3% 1 Year 13.1% 3 Year 10% 5 Year 6.7% 10 Year 15 Year Since launch 4.3% Historical performance (Yearly) on absolute basis
Year Returns 2022 -8.6% 2021 29.5% 2020 0% 2019 18.2% 2018 -11.3% 2017 -1.9% 2016 22.5% 2015 -20.9% 2014 -5.5% 2013 31.2% Fund Manager information for DSP BlackRock World Energy Fund
Name Since Tenure Jay Kothari 1 Mar 13 9.84 Yr. Data below for DSP BlackRock World Energy Fund as on 31 Dec 22
Equity Sector Allocation
Sector Value Technology 33.4% Industrials 23.67% Utility 22.21% Basic Materials 11.5% Consumer Defensive 2.24% Asset Allocation
Asset Class Value Cash 6.98% Equity 93.02% Top Securities Holdings / Portfolio
Name Holding Value Quantity BGF Sustainable Energy I2
Investment Fund | -99% ₹150 Cr 1,045,250
↓ -4,072 Treps / Reverse Repo Investments / Corporate Debt Repo
CBLO/Reverse Repo | -1% ₹2 Cr Net Receivables/Payables
CBLO | -0% ₹0 Cr 4. ICICI Prudential US Bluechip Equity Fund
CAGR/Annualized return of 16.2% since its launch. Ranked 7 in Global category. Return for 2022 was -7.1% , 2021 was 22.5% and 2020 was 18.6% . ICICI Prudential US Bluechip Equity Fund
Growth Launch Date 6 Jul 12 NAV (06 Feb 23) ₹49.2 ↓ -0.42 (-0.85 %) Net Assets (Cr) ₹2,121 on 31 Dec 22 Category Equity - Global AMC ICICI Prudential Asset Management Company Limited Rating ☆☆☆☆ Risk High Expense Ratio 2.26 Sharpe Ratio -0.44 Information Ratio -0.37 Alpha Ratio 1.62 Min Investment 5,000 Min SIP Investment 100 Exit Load 0-3 Months (3%),3-12 Months (1%),12 Months and above(NIL) Growth of 10,000 investment over the years.
Date Value 31 Jan 18 ₹10,000 31 Jan 19 ₹11,007 31 Jan 20 ₹13,236 31 Jan 21 ₹15,512 31 Jan 22 ₹19,160 31 Jan 23 ₹19,921 Returns for ICICI Prudential US Bluechip Equity Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 31 Dec 21 Duration Returns 1 Month 10.6% 3 Month 20.1% 6 Month 8.3% 1 Year 8.8% 3 Year 14.2% 5 Year 16.1% 10 Year 15 Year Since launch 16.2% Historical performance (Yearly) on absolute basis
Year Returns 2022 -7.1% 2021 22.5% 2020 18.6% 2019 34.3% 2018 5.2% 2017 14.1% 2016 11.6% 2015 0.7% 2014 12.7% 2013 45.7% Fund Manager information for ICICI Prudential US Bluechip Equity Fund
Name Since Tenure Rohan Maru 19 Sep 13 9.29 Yr. Sharmila D’mello 1 Jul 22 0.5 Yr. Data below for ICICI Prudential US Bluechip Equity Fund as on 31 Dec 22
Equity Sector Allocation
Sector Value Technology 28.55% Industrials 18.23% Financial Services 13.16% Communication Services 11.54% Health Care 11% Consumer Cyclical 10.85% Basic Materials 4.77% Utility 0.21% Asset Allocation
Asset Class Value Cash 1.69% Equity 98.31% Top Securities Holdings / Portfolio
Name Holding Value Quantity Meta Platforms Inc Class A (Communication Services)
Equity, Since 31 Mar 21 | META3% ₹71 Cr 70,922 Equifax Inc (Industrials)
Equity, Since 30 Sep 21 | EFX3% ₹67 Cr 41,664 MercadoLibre Inc (Consumer Cyclical)
Equity, Since 31 Dec 21 | MELI3% ₹67 Cr 9,536 Adobe Inc (Technology)
Equity, Since 31 Mar 22 | ADBE3% ₹65 Cr 23,301 The Walt Disney Co (Communication Services)
Equity, Since 31 Dec 21 | DIS3% ₹64 Cr 88,803 Boeing Co (Industrials)
Equity, Since 31 Mar 20 | BA3% ₹63 Cr 40,107
↓ -9,800 BlackRock Inc (Financial Services)
Equity, Since 31 Mar 22 | BLK3% ₹62 Cr 10,641 Veeva Systems Inc Class A (Healthcare)
Equity, Since 31 Oct 21 | VEEV3% ₹62 Cr 46,566 Zimmer Biomet Holdings Inc (Healthcare)
Equity, Since 31 Mar 17 | ZIM3% ₹61 Cr 58,061
↓ -6,016 Microsoft Corp (Technology)
Equity, Since 30 Jun 16 | MSF3% ₹61 Cr 30,804
↓ -4,310 5. Invesco India Feeder- Invesco Pan European Equity Fund
CAGR/Annualized return of 4.4% since its launch. Ranked 20 in Global category. Return for 2022 was 1.6% , 2021 was 16.6% and 2020 was 1.6% . Invesco India Feeder- Invesco Pan European Equity Fund
Growth Launch Date 31 Jan 14 NAV (07 Feb 23) ₹14.7843 ↓ -0.01 (-0.04 %) Net Assets (Cr) ₹36 on 31 Dec 22 Category Equity - Global AMC Invesco Asset Management (India) Private Ltd Rating ☆☆☆ Risk High Expense Ratio 0.56 Sharpe Ratio -0.02 Information Ratio 0 Alpha Ratio 0 Min Investment 5,000 Min SIP Investment 500 Exit Load 0-1 Years (1%),1 Years and above(NIL) Growth of 10,000 investment over the years.
Date Value 31 Jan 18 ₹10,000 31 Jan 19 ₹9,197 31 Jan 20 ₹9,376 31 Jan 21 ₹9,903 31 Jan 22 ₹11,626 31 Jan 23 ₹12,674 Returns for Invesco India Feeder- Invesco Pan European Equity Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 31 Dec 21 Duration Returns 1 Month 6.4% 3 Month 20.3% 6 Month 22.1% 1 Year 8.8% 3 Year 10.2% 5 Year 6% 10 Year 15 Year Since launch 4.4% Historical performance (Yearly) on absolute basis
Year Returns 2022 1.6% 2021 16.6% 2020 1.6% 2019 17.2% 2018 -11.2% 2017 14.8% 2016 -0.2% 2015 0.6% 2014 2013 Fund Manager information for Invesco India Feeder- Invesco Pan European Equity Fund
Name Since Tenure Amit Nigam 9 Jul 22 0.48 Yr. Data below for Invesco India Feeder- Invesco Pan European Equity Fund as on 31 Dec 22
Equity Sector Allocation
Sector Value Industrials 17.07% Financial Services 15.41% Basic Materials 12.4% Energy 11.71% Health Care 9.94% Consumer Cyclical 8.5% Utility 6.95% Technology 6.07% Consumer Defensive 5.31% Communication Services 4.11% Real Estate 0.6% Asset Allocation
Asset Class Value Cash 1.94% Equity 98.06% Top Securities Holdings / Portfolio
Name Holding Value Quantity Invesco Pan European Equity C EUR Acc
Investment Fund | -99% ₹35 Cr 155,001
↓ -28,427 Triparty Repo
CBLO/Reverse Repo | -3% ₹1 Cr Net Receivables / (Payables)
CBLO | -1% ₹0 Cr 6. Aditya Birla Sun Life Commodity Equities Fund - Global Agri Plan
CAGR/Annualized return of 9.7% since its launch. Ranked 25 in Global category. Return for 2022 was 7.7% , 2021 was 32.7% and 2020 was 1.4% . Aditya Birla Sun Life Commodity Equities Fund - Global Agri Plan
Growth Launch Date 7 Nov 08 NAV (07 Feb 23) ₹37.4085 ↓ -0.26 (-0.69 %) Net Assets (Cr) ₹16 on 31 Dec 22 Category Equity - Global AMC Birla Sun Life Asset Management Co Ltd Rating ☆☆ Risk High Expense Ratio 1.7 Sharpe Ratio 0.22 Information Ratio -0.43 Alpha Ratio -4.93 Min Investment 1,000 Min SIP Investment 1,000 Exit Load 0-365 Days (1%),365 Days and above(NIL) Growth of 10,000 investment over the years.
Date Value 31 Jan 18 ₹10,000 31 Jan 19 ₹9,830 31 Jan 20 ₹9,778 31 Jan 21 ₹11,065 31 Jan 22 ₹14,263 31 Jan 23 ₹15,405 Returns for Aditya Birla Sun Life Commodity Equities Fund - Global Agri Plan
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 31 Dec 21 Duration Returns 1 Month 4.3% 3 Month -0.9% 6 Month -0.4% 1 Year 8.7% 3 Year 16.2% 5 Year 10.2% 10 Year 15 Year Since launch 9.7% Historical performance (Yearly) on absolute basis
Year Returns 2022 7.7% 2021 32.7% 2020 1.4% 2019 17.6% 2018 -8.1% 2017 6.3% 2016 10% 2015 -6.1% 2014 6.8% 2013 12.8% Fund Manager information for Aditya Birla Sun Life Commodity Equities Fund - Global Agri Plan
Name Since Tenure Vinod Bhat 2 May 22 0.67 Yr. Data below for Aditya Birla Sun Life Commodity Equities Fund - Global Agri Plan as on 31 Dec 22
Equity Sector Allocation
Sector Value Consumer Defensive 45.05% Basic Materials 40.81% Industrials 11.16% Asset Allocation
Asset Class Value Cash 2.98% Equity 97.02% Top Securities Holdings / Portfolio
Name Holding Value Quantity Archer-Daniels Midland Co (Consumer Defensive)
Equity, Since 31 Jul 13 | ADM10% ₹2 Cr 2,127 Bunge Ltd (Consumer Defensive)
Equity, Since 31 Oct 12 | BG9% ₹1 Cr 1,748 Nutrien Ltd (Basic Materials)
Equity, Since 31 Jan 18 | N7T8% ₹1 Cr 2,097 CF Industries Holdings Inc (Basic Materials)
Equity, Since 31 Aug 12 | C4F8% ₹1 Cr 1,737 Deere & Co (Industrials)
Equity, Since 28 Feb 09 | DEER8% ₹1 Cr 346 Ingredion Inc (Consumer Defensive)
Equity, Since 31 May 11 | CNP7% ₹1 Cr 1,273 The Mosaic Co (Basic Materials)
Equity, Since 29 Feb 12 | MOS6% ₹1 Cr 2,840 ICL Group Ltd (Basic Materials)
Equity, Since 30 Sep 12 | ICL6% ₹1 Cr 15,939 Sociedad Quimica Y Minera De Chile SA ADR (Basic Materials)
Equity, Since 31 Oct 12 | QYM6% ₹1 Cr 1,351 Wilmar International Ltd (Consumer Defensive)
Equity, Since 31 Aug 13 | F344% ₹1 Cr 26,900 7. Invesco India Feeder- Invesco Global Equity Income Fund
CAGR/Annualized return of 7.8% since its launch. Ranked 12 in Global category. Return for 2022 was -2.1% , 2021 was 21% and 2020 was 7.3% . Invesco India Feeder- Invesco Global Equity Income Fund
Growth Launch Date 5 May 14 NAV (07 Feb 23) ₹19.3879 ↓ -0.12 (-0.61 %) Net Assets (Cr) ₹12 on 31 Dec 22 Category Equity - Global AMC Invesco Asset Management (India) Private Ltd Rating ☆☆☆ Risk High Expense Ratio 0.94 Sharpe Ratio -0.22 Information Ratio 0 Alpha Ratio 0 Min Investment 5,000 Min SIP Investment 500 Exit Load 0-1 Years (1%),1 Years and above(NIL) Growth of 10,000 investment over the years.
Date Value 31 Jan 18 ₹10,000 31 Jan 19 ₹9,607 31 Jan 20 ₹10,622 31 Jan 21 ₹11,814 31 Jan 22 ₹13,629 31 Jan 23 ₹14,679 Returns for Invesco India Feeder- Invesco Global Equity Income Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 31 Dec 21 Duration Returns 1 Month 6.8% 3 Month 20.6% 6 Month 12.5% 1 Year 8.4% 3 Year 11.2% 5 Year 9.3% 10 Year 15 Year Since launch 7.8% Historical performance (Yearly) on absolute basis
Year Returns 2022 -2.1% 2021 21% 2020 7.3% 2019 24.7% 2018 -7.5% 2017 13.2% 2016 2.6% 2015 4% 2014 2013 Fund Manager information for Invesco India Feeder- Invesco Global Equity Income Fund
Name Since Tenure Amit Nigam 9 Jul 22 0.48 Yr. Data below for Invesco India Feeder- Invesco Global Equity Income Fund as on 31 Dec 22
Equity Sector Allocation
Sector Value Financial Services 20.72% Technology 18.83% Industrials 14.28% Consumer Cyclical 11.39% Real Estate 6.99% Communication Services 6.74% Consumer Defensive 5.22% Health Care 3.68% Energy 2.57% Asset Allocation
Asset Class Value Cash 2.33% Equity 90.42% Other 7.25% Top Securities Holdings / Portfolio
Name Holding Value Quantity Invesco Global Equity Income C USD Acc
Investment Fund | -97% ₹11 Cr 13,528 Triparty Repo
CBLO/Reverse Repo | -3% ₹0 Cr Net Receivables / (Payables)
CBLO | -1% ₹0 Cr 8. Edelweiss ASEAN Equity Off-shore Fund
CAGR/Annualized return of 8.5% since its launch. Ranked 18 in Global category. Return for 2022 was 4.8% , 2021 was 6.3% and 2020 was 2.3% . Edelweiss ASEAN Equity Off-shore Fund
Growth Launch Date 1 Jul 11 NAV (06 Feb 23) ₹25.681 ↓ -0.24 (-0.93 %) Net Assets (Cr) ₹68 on 31 Dec 22 Category Equity - Global AMC Edelweiss Asset Management Limited Rating ☆☆☆ Risk High Expense Ratio 1.45 Sharpe Ratio 0.05 Information Ratio 0 Alpha Ratio 0 Min Investment 5,000 Min SIP Investment 1,000 Exit Load 0-12 Months (1%),12 Months and above(NIL) Growth of 10,000 investment over the years.
Date Value 31 Jan 18 ₹10,000 31 Jan 19 ₹10,116 31 Jan 20 ₹9,966 31 Jan 21 ₹10,576 31 Jan 22 ₹11,289 31 Jan 23 ₹12,274 Returns for Edelweiss ASEAN Equity Off-shore Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 31 Dec 21 Duration Returns 1 Month 4.1% 3 Month 12.6% 6 Month 11.3% 1 Year 8.3% 3 Year 7% 5 Year 4.8% 10 Year 15 Year Since launch 8.5% Historical performance (Yearly) on absolute basis
Year Returns 2022 4.8% 2021 6.3% 2020 2.3% 2019 12% 2018 -2.1% 2017 21.9% 2016 9.6% 2015 -11.1% 2014 8.4% 2013 10.1% Fund Manager information for Edelweiss ASEAN Equity Off-shore Fund
Name Since Tenure Bhavesh Jain 27 Sep 19 3.26 Yr. Bharat Lahoti 1 Oct 21 1.25 Yr. Data below for Edelweiss ASEAN Equity Off-shore Fund as on 31 Dec 22
Equity Sector Allocation
Sector Value Financial Services 42.67% Consumer Cyclical 10.86% Industrials 8.02% Real Estate 7.91% Communication Services 6.75% Consumer Defensive 6.21% Energy 4.02% Basic Materials 3.88% Health Care 3.73% Technology 2.4% Utility 1.5% Asset Allocation
Asset Class Value Cash 2.04% Equity 97.96% Top Securities Holdings / Portfolio
Name Holding Value Quantity JPM ASEAN Equity I (acc) USD
Investment Fund | -100% ₹68 Cr 48,875 Clearing Corporation Of India Ltd.
CBLO/Reverse Repo | -1% ₹0 Cr Net Receivables/(Payables)
CBLO | -1% ₹0 Cr Accrued Interest
CBLO | -0% ₹0 Cr
Types of International Mutual Funds
1. Emerging Market Funds
This type of mutual fund invests in emerging markets like India, China, Russia, Brazil etc. China has surpassed the USA to be the world’s largest car manufacturer. Russia is a big player in natural gas. India has a fast-growing service economy base. These countries are expected to grow tremendously in the coming years making them a hot choice for investors.
Some of the best international mutual fund schemes that invest in emerging markets are Birla Sun Life International Equity Plan A, Kotak Global Emerging Market Fund and Principal Global Opportunities Fund.
Talk to our investment specialist
2. Developed Market Funds
Developed market funds are an attractive option because it is generally seen that mature markets are more stable. Also, they do not have the problems associated with emerging markets like an economy or currency risk in the economy, political instability, etc. making them less risky. Some schemes that invest in developed markets are DWS Global Thematic Offshore Fund etc.
3. Country Specific Funds
As the name suggests, this type invests only in a specific country or part of the globe. But, country-specific funds defeat the entire purpose of diversifying the Portfolio since it lays all eggs in one basket. However, when there are opportunities in specific countries due to various reasons, these funds become a good choice.
Reliance Japan Equity Fund, Kotak US Equities Fund and Mirae Asset China Advantage Fund are some country-specific schemes.
4. Commodity Based Funds
These funds invest in commodities like gold, precious metals, crude oil, wheat, etc. Commodities offer diversification and also act as an Inflation hedge, thus protecting the investors. Also, these funds could be multi-commodity or focused on a single commodity.
Best commodity based international mutual funds are DSP Black Rock World Gold Fund, ING OptiMix Global Commodities, Mirae Asset Global Commodity Stocks, Birla Sun Life Commodity Equities - Global Agri Fund, etc.
5. Theme Based Funds
Theme based funds or thematic funds invest in a particular theme. For example, if the theme is infrastructure, it would invest in infrastructure construction companies as well as companies related to the infrastructure business like cement, steel, etc.
They are often confused with sectoral funds which focus only on a specific Industry. For example, pharmaceutical sectoral funds would only invest in pharma companies. Compared to sector funds, thematic funds are a broader concept. This offers more diversification and less risk since the investment is spread across various industries.
Some theme based funds are DSPBR World Energy Fund, L&T Global Real Assets Fund etc.
Why to Invest in International Mutual Funds?
1. Diversification
The main motive of Investing in International Mutual Funds is diversification. Diversification helps in optimising the returns and reducing the overall risks of a portfolio. Low or negative correlations between investments make sure that the returns are not dependent on only one sector or economy. Thus, balancing the portfolio and protecting the investor.
2. Ease in Investing
You can give a global edge to your portfolio by making a direct investment in foreign markets through equities, commodities, Real Estate, and exchange-traded funds (ETFs) as well. Buying units of an international mutual fund are much easier and they also provide the expertise of the fund manager which is not available in the other investing avenues.
3. International Exposure
International mutual funds help in expanding the investor horizons beyond the domestic boundaries. Also, investing internationally helps set-off any losses that the investor may have incurred in the domestic market.
4. Currency Fluctuations
International Mutual Fund schemes determine the NAV (Net Asset Value) of the fund by using the prevailing exchange rate. The exchange rates fluctuate every day, or more so, every minute.
This means that for a scheme investing in US Dollars, the NAV of the scheme would be impacted as per the dollar-rupee movement. It is observed that the more the rupee depreciates, the higher are the gains. This makes international mutual funds even more attractive since the rupee is going downhill now.
5. Country Specific Exposures
If the investor wants to take complete advantage of another country’s growth, international mutual funds are the way to go. But the Flip side of this would be that the portfolio is dependent solely on one economy. Hence, increasing the risk Factor.
Taxation of International Mutual Funds
Tax treatment of international mutual funds in India is similar to that of Debt fund. If the investor holds the investments short term i.e. less than 36 months, they will be included in his total Income and will be taxed as per the applicable slab rate.
If the investments are held for more than 36 months, the investor is then eligible for indexation benefits. Any gains arising from the schemes will be taxed @ 10% without indexation or 20% with indexation.
How to Invest in International Mutual Fund Online?
Open Free Investment Account for Lifetime at Fincash.com.
Complete your Registration and KYC Process
Upload Documents (PAN, Aadhaar, etc.). And, You are Ready to Invest!
According to experts, an investor should have around 10-12% of the portfolio invested in international mutual funds. So with the basics covered now, start building up that portfolio with international mutual funds today.
FAQs
1. What are the benefits of investing in international mutual funds?
A: It diversifies your portfolio of investment, which tends to give you better & diversified returns. It also keeps your portfolio balanced. As these companies have foreign funds, you can expect your investment to produce good returns.
2. Can I invest in companies that post lower growth than India?
A: Yes, you can, but it will depend on the financial institution you are investing in. You cannot directly invest in the securities of a foreign company. You will need a broker or a financial institute to help you invest in the particular security.
3. What is the Franklin India Feeder?
A: The Franklin India Feeder or the Franklin US Opportunities Fund is one of the most successful international mutual funds. This fund allows you to invest in multiple securities of companies in the United States involved in fields like technology, healthcare, consumer cyclical, financial services, and many more such industrial sectors. These mutual funds allow you to diversify your portfolio of investments, making it easy to invest in multiple securities through a single investment. Since its launch, the Franklin India Feeder has produced returns of 19.9%.
4. What is the BlackRock World Mining Fund?
A: This is different from Franklin as it has an equity sector only in necessary materials and financial services. This is considered to be a high-risk mutual fund, but has been known to produce excellent returns. The DSP BlackRock World Mining has produced returns of nearly 34.9% for the 3- year investment period.
5. Are earnings from international mutual funds taxed?
A: Yes, Earnings from international mutual funds are taxed. Dividends that you earn from these funds are liable for Tax Deducted at Source or TDS at 7.5% till March 31, 2021, and the mutual fund house deducts it. If you have invested for 3 years, it will fall under the short-term investment, and if for more, you will have to categorize it under long-term investment. The taxation slab will also depend on the time for which the investment has been made.
6. What is the main risk of the international mutual fund?
A: The primary risk of the international mutual fund is the fluctuating nature of the foreign exchange rate. If the foreign exchange rates fluctuate compared to the rupee, it can adversely affect your investment.
7. Who should invest in a foreign mutual fund?
A: If you are looking to diversify your investment portfolio and looking to add a geographical diversification, then you could consider investing in a foreign mutual fund.
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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Very good article I got all the required information.