Top 10 International Mutual Funds to Invest in January 2022

International mutual funds are equity funds that invest largely in equities of firms whose headquarters are located outside of India. These funds assist mutual funds in diversifying their investment portfolios and assisting funds in achieving higher returns by taking on a larger risk associated with investing in international markets. We discussed the concept of international mutual funds, as well as their features, factors, and the best international mutual funds to invest in, in this article.

What are International Mutual Funds?

International funds, often known as overseas funds, invest in equities of firms that are publicly traded on a global exchange. By investing in such funds, investors increase their risk exposure, but they also enhance their possibilities of earning a bigger return.

Investors have become more aware of the many investment possibilities available around the world, which helps them diversify their investment portfolio, thanks to the ever-changing time and expanding investor knowledge. The broad investment portfolio spans sectors, industries, and more, and capitalises on overseas companies’ growth.

These funds are riskier since it is impossible to predict the influence of a country’s market movements and their impact on global and economic changes.

Top 10 International Mutual Funds to Invest in January 2022

1. Franklin India Feeder Franklin US Opportunities Fund (G)

2. DSP US Flexible Equity Fund (G)

3. PGIM India Global Equity Opportunities Fund (G)

4. ICICI Prudential US Bluechip Equity Fund (G)

5. Edelweiss Greater China Equity Offshore Fund (G)

6. Nippon India US Equity Opportunities Fund (G)

7. Motilal Oswal Nasdaq 100 Fund of Fund (G)

8. PGIM India Emerging Markets Equity Fund (G)

9. Kotak Global Emerging Market Fund (G)

10. Aditya Birla Sun Life Global Emerging Opportunities Fund (G)

Who should invest in International Mutual Funds?

International funds are appropriate for investors who have a thorough understanding of the movements and operations of international markets. Investing dangers

These funds are not suitable for investors who are unwilling to incur equity market risks because their investment portfolio consists of global equities assets.

The amount of risk for a 25-year-old investor will differ from that of a 50-year-old investor; the cost of living on the investor; and the desire to save money and grow capital differ from one investor to the next.

Investors who want to diversify their present portfolio by investing in international funds. This will ensure that their funds are invested in equities across worldwide markets, allowing them to profit from market fluctuations on a global scale.

International funds are suitable for investors who have a thorough understanding of the current market situation and economic conditions in a given region.

Features of International Mutual Funds

Diversification

Because international funds invest in equities and debt assets all around the world, they provide investors with a wonderful way to diversify their portfolios. This also allows investors to take advantage of the specific country’s market characteristics.

Risk

Because the investment portfolio contains securities from a foreign country, it is difficult to keep track of the country’s social and economic conditions at all times. It’s also tough to get accurate and technical information on their market movements. As a result, overseas funds are more vulnerable to risk.

Management of money

Because it is critical to maintaining track of foreign market movements, it is necessary to track international markets in real-time. As a result, the investments are managed by fund managers, who are professionals with years of experience in this field.

Exposure

International funds invest in various countries’ equity/debt instruments, allowing them to profit from the investment by taking advantage of the country’s changing situations. This ensures that the investment portfolio suffers the least amount of loss.

Factors to Consider before Investing in International Mutual Funds

Being an investor who wishes to gain from investing in an International Mutual Fund requires a good understanding of the international financial market and rigorous study before investing and throughout the investment period.

Before investing in the Foreign Fund, examine the following points:

• Always do your homework when it comes to mutual fund schemes. Credit risk, default risk, historical performance, risk category, and fund allocation to diverse industries are all factors to consider.
• Carefully read the offer materials.
• The fund’s investment objective must align with your personal financial goals. For example, if your long-term investment goal is capital appreciation via an equity-oriented mutual fund, you can pick Franklin India Feeder – Franklin U.S. Opp (G).
• Select a country based on several variables, including a stable and well-developed stock market, a solid legal system, and strong corporate governance.
• Choose a country or stock market that is less dangerous, more secure, and offers a higher return and bonus, such as the United States. The Chinese market, on the other hand, is regarded as riskier, despite larger one-year returns.