Are there any offshore funds in India? Is it beneficial to invest in them?
There are a number of Indian mutual funds that invest abroad. This category of funds has exotic offerings that invest in Latin America, global real estate, global mining companies, etc, as well as funds that have diversified holdings across the globe. These international funds can be a useful element to your portfolio, because they give you the benefit of diversifying across geographies. However, investors shouldn’t opt for the exotic variants. Invest in the more diversified global funds or the funds that invest in companies that are domiciled in the US, but have operations all over the world. From a taxation point-of-view, these international funds are taxed like debt funds.