Global Investing

List of Contents:

Why should I invest internationally ?

How do I redeem my global investments ?

Benefits of investing in global markets

How much should you invest in global markets?

How to invest in international markets?

 

Although international investments have been in the market for a long time, many investors realized its importance last year after the phenomenal rise in the US markets.

Investing in global equities is easy if you do it with Mutual Funds.

Why should I invest internationally ?

  • To get a hedge against currency. Money goes from India in rupee terms but it gets invested in dollars or some other foreign currency. So, you get hedge against the depreciation of Indian currency
  • You get exposure to other economies
  • Diversified portfolio
  • Having exposure to the world’s markets through international funds puts you in a sweet spot to benefit from the growth of other countries.

 

How do I redeem my global investments ?

You invest in a mutual fund in India. Then, the fund houses convert your investment in dollars and invest. Also, at the time of redemption also, the investment is first redeemed in dollars and then converted to rupees by the fund houses. So, the invested need not worry about currency conversion.

 

Benefits of investing in global markets

With global market investing, your investment options are not only limited to your country. You can invest in financial instruments that are not available in India and enjoy high returns. You can also invest in international stocks of different sectors. For example, you can invest in the engineering space in Europe, commodities in Australia, or technology in the US markets

Investment in international funds helps you get the benefit of the depreciating rupee. In the current scenario, the Indian currency has steeply depreciated against the USD at a level of 80. Let’s assume that investors had invested in international funds when the Indian Rupee was 70 against the USD, and the US market did not perform at all during this time. Even then, thanks to the exchange rate movement, investors would have made returns in excess of 14%.

How much should you invest in global markets?

Ideally, you can invest 20% of your portfolio in international stocks. However, this percentage can be modified depending on your risk appetite, financial goals etc

How to invest in international markets?

Investing in global markets through mutual funds is the best option. Because the professional team behind, will invest your money in companies that are well researched. So, you get a diversified portfolio which is also well monitored by the fund managers

 

If you want to know in which fund you should invest or how you can start investing in international markets, contact us at 9460825477