Should one invest in international funds? How to go about finding a good international fund?
- Pranav
One should definitely invest in an international fund. To go about selecting one, start by narrowing down the universe of funds. There are too many funds that are not investment-worthy. You would find funds that have been there for long, invest across geographies but have not produced anything meaningful. Remove them from your universe.
While investing in an international fund, one should look for a promising investment that you do not have access to in the Indian market. And don't get anything extremely narrow or exotic. I find such traits in the US-domiciled funds like the Nasdaq. There you are getting exposure to a market that has a large set of globally competitive businesses. A great business becomes a monopoly. And you come across many of those technology and innovation-led monopoly businesses in the US. Not elsewhere! So I would say that should be a top part of your international diversification.
This article was originally published on October 20, 2021.
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