InvestorQ : Which mutual funds in India has exposure to foreign stocks?
Anjali Desai made post

Which mutual funds in India has exposure to foreign stocks?

6 months ago
There are various mutual funds in India that have exposure to foreign stocks. Mutual fund groups like ICICI Prudential, Motilal Oswal, HDFC, Kotak, etc all have different schemes that allow retail investors to invest in international stocks. But investing internationally and managing the portfolio can be a complex affair. Besides feeder mutual funds, Indian brokerages have partnerships that allow investors to directly invest in stock and mutual funds abroad. Apart from feeder funds, there are a few options available. These can be accessed through the liberalized remittance scheme (LRS).

A few banks and brokerage houses, which have tied up with offshore platforms, can facilitate the investors to open accounts and buy stocks, funds, and ETFs directly. There are multiple choices available across 39 funds and ETFs, where the parent funds have underlying exposure across global markets. Although there is good scope to earn better returns on your portfolio by investing in multiple economies or different markets, these benefits do come with a fair amount of risk.

There are two major risks to investing in international funds. First is the currency exchange difference. If the rupee appreciates versus any currency that you are investing in, then the returns will suffer accordingly. Secondly, any economic and political changes can impact your investment, which is a significant and unpredictable risk.