How to Invest in International Markets with Mutual Funds

Why should one invest internationally? By not investing in international funds, you risk missing out on promising opportunities like Google and Facebook. When you invest in an Indian fund, you don't get exposure to that. These are equally promising or even very promising businesses and opportunities. The other reason is diversification - reducing risk while accessing great opportunities. Suggested read: International funds should be a routine choice Why should one invest abroad through mutual funds? Indian investors have been permitted to invest abroad. You can open an account, and you can remit $200,000 every year to invest in a portfolio. However, it's complicated. You have to take a risk with the broker, manage purchases yourself, and ensure legitimacy. After all, what will you do if the broker goes bankrupt? When you invest in a mutual fund, you have an overlay of safety under Indian regulations. A regulated entity invests either in a fund of funds or directly in those stocks. You have the safety net of Indian regulation and simplified taxation. There's no restriction or any such limit. Also, you'll get actively managed funds, and the taxation will be simpler.

This article was originally published on December 13, 2024.