I am a senior citizen and I am looking for some Indian mutual funds which invest in US or European equity market. Can you suggest some names?
There are two to three ways of doing it. Every Indian can invest up to $200,000 every year directly in US stocks. There are brokers in this country which will help you enable it and it is a fairly simple way of investing abroad. You have plenty of vehicles to invest through mutual funds. The best performing fund available to Indian investors which invests abroad, turns out to be the US fund. It is Motilal Oswal Nasdaq 100 ETF which has given a return of nearly 20 per cent in the last one year. And it has consistently done well. But to invest in that fund you have to buy it like a stock. You need to go to a broker. But now they have launched an open-end fund which will invest in this ETF. So you can buy it like an open-end fund. This ETF has a 7-year history and it has done exceptionally well. Other prominent funds are Franklin US Opportunities Fund, followed by Reliance US Equity Opportunities Fund and ICICI Prudential US Bluechip Equity Fund.
Also, there are Indian funds which invest 65% in India stocks and remaining 35 per cent abroad. Parag Parikh Long Term Equity Fund invests around 30% in US stocks. And the prominent among that happens to be Alphabet, the company which owns Google. This fund turns out to be reasonably impressive in full market cycle and gets you a very neat diversification in a single fund.