DSP BlackRock World Gold Fund and AIG World Gold Fund have given excellent returns in the last one year. But information on these funds is very scarce. Would you recommend investments in these funds at current valuations?
- Chandi Kumar Goparaju
Investing in international funds is for mature investors looking to diversify risks. It is not for those blindly chasing high returns. No doubt both these funds have fared well in the past one year, but one need to understand the risks associated with these funds and the performance history and track record of the feeder funds that these invest in.
Besides reducing risk through diversification, global investing can also boost your portfolio returns. With no country managing to be at the top of the returns charts each year, the case for spreading your investments across countries definitely gets stronger. However, invest only once you have some idea of the risks and benefits of global investing and make an informed choice about whether you should enter this investment arena.
This article was originally published on February 21, 2011.
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