InvestorQ : Are there any mutual funds that invest in international stocks?
Radhika Arya made post

Are there any mutual funds that invest in international stocks?

Answer
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nishi Shah answered.
9 months ago


There are not just international stocks, but you’ll be surprised to know that even in this crisis these funds are outperforming their benchmarks. These funds invest a maximum of 35% in overseas shares and remaining in the shares of Indian companies. The choice of global shares is very exclusive and shall be such that the investors are well-informed about the company. Companies are not selected just based on their values, but also on the basis of their familiarity among the investors.

This year has been proved to be complicated for the share market. However, even during this chaos one fund that outperformed even its benchmark was the Parag Parikh Long term Equity fund. It returned 14.5% against a benchmark of 9%. Well, the reason? Overseas investments.

Rajeev Thakkar, Director, and CIO, PPFAS Mutual Fund says that “Having a mix of investment across geographies helps in reducing the volatility of the scheme as well as potentially enables outperformance when one particular market is not doing that well.”

The idea is not going to exotic countries, but to restrict ourselves to global multinationals, well-known companies with which the investors are well-versed and familiar.

Another perspective on choosing global stocks is that the Indian market has not performed well in this entire decade hence it has not been the decade of the Indian market. But comparatively, the American market has performed substantially well and hence has hope for the investors.