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Going Global

Look for diversification and a compelling need for them in your portfolio

There are many international funds now, what are the benefits of investing in these funds?
-Sidhant Mehta

Investing in international funds is similar to investing in Indian mutual funds. There are 26 funds that fall within this category and have varied investment objectives such as investing in geographies, sectors and even commodities. The one big advantage of investing in these funds is the diversification that one can get by investing in them. However, there are few disadvantages that one faces investing in these funds. First, Indians funds are faring far better than these currently, next, there is very little by comparison available to select the right fund in this universe and last, these funds have the disadvantage of facing currency arbitrage that can work against investing in these funds. Unless there is a compelling reason to invest in these funds, they are best left out.



This article was originally published on November 26, 2010.

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