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Diversify globally

Diversifying globally by investing in an international fund should be a normal part of everyone’s investments

I want to talk about the FT India Feeder US Opportunities fund. What prospects does the fund have now with the possibility of rupee losing value further? And for those of us who didn’t invest back then, can we still get started?

FT India Feeder US Opportunities fund has been a top performer among international funds with a return of 55 per cent over the last one year.

The primary driver for having an international fund in your portfolio is to diversify. And choosing a well diversified fund is the best way of going about it. When you have to diversify, you should not choose a thematic fund or exotic international fund.

We believe the US fund to be a diversified vehicle simply because the underlying companies have global businesses. Besides that the underlying US Opportunities fund has a long overseas history.

On the other hand, the rupee depreciation or appreciation can be a tactical thing. Investors have equal chances to lose or gain.

Our currency will depreciate over time because there is a huge difference in interest rates between India and the US. But it is very difficult to anticipate the kind of depreciation we have seen over the last three-four months.

The reason why you should invest in such a fund is to diversify and that case still remains strong. Most investors have only Indian stocks or assets in their portfolio. From a risk perspective, it is very important to diversify. Besides, the underlying companies are a compelling choice. They are global leaders and Indian investors do not have a better alternative to diversify methodically in such a portfolio.

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