I usually use Value Research Ratings to make my mutual fund investments. At the moment, I am looking to diversify my portfolio by investing in international funds. However, these funds do not have any rating. Why is that so? Which international fund would you recommend?
- Arjun Mittal
A fund is not rated until the category has 10 funds which are alike and have a minimum history of three years. A fund category is made up of homogenous funds. And we do not have 10 international funds in the category which are alike. In this category, funds are different. Some of them are thematic, while some are region-specific.
I particularly like Motilal Oswal Nasdaq 100 FOF and Franklin India Feeder Franklin US Opportunities Fund. These two funds are worth investing. The reason is simple. They have compelling history, the rupee has depreciated and that is likely to continue until we have a difference in interest rates. That will give you 4-5 per cent of additional gains. When you invest today, rupee gets converted into US dollar and over 4-5 years, it appreciates in value. Also, these funds have a very high-quality portfolio. You get an exposure to the kind of companies that are not available in India.