InvestorQ : Can I invest in international mutual funds from India?
Suhani Mirza made post

Can I invest in international mutual funds from India?

leah Diaz answered.
11 months ago
Yes, you can definitely invest in international mutual funds from India. This fund can act as an alternative in the investor’s portfolio. Especially for the investors who are looking for a long-term investment option. . It will not only give you geographical diversification but also offer opportunities to invest in sectors that are not available in India. There are multiple international funds available.

Also, this fund can yield higher SIP return or lump sum return to investors who come along with a better understanding of risk. It also allows the investors to earn from the market cycle of other country’s economies. The technical expertise of a fund manager, also helps the new investor to take an opportunity in the foreign markets.

The major risks associated with International funds are the fluctuating currency exchange rate, a constant vigilance of the political, social, and economical aspects in different countries, dual-market risks that arise from the current market fluctuations, and the impact of the sectoral market. However, the tax treatment of international funds is an important aspect to be kept in mind before taking the final call. These schemes are treated like debt mutual funds that means if you sell them before three years, the returns would be added to your income and taxed as per the applicable income tax slab. If you sell the investments after three years, returns would be taxed at 20% with indexation benefit.

Many prominent Asset management companies have schemes with specific international exposure or have tie-ups with international mutual fund platforms. Investing in those schemes will give an average Indian investor exposure to global companies. Given below are some examples of international mutual fund schemes you can invest in:

  • DSP Global Allocation Fund
  • Principal Global Opportunities Fund.
  • Nippon India US Equity Opportunities Fund
  • Edelweiss Greater China Equity Off-shore Fund
  • DSP BlackRock US Flexible Equity Fund.
  • Aditya Birla Sun Life International Equity Fund - Plan B.
  • PMG India Global Equity Opportunities Fund
  • ICICI Prudential US Bluechip Equity Fund
  • Axis Global Equity Alpha Fund of Fund
  • HSBC Global Consumer Opportunities Fund