1. Are international mutual funds risky?
Mutual funds’ dependence on international economic factors exposes them to market and currency risks, but at the same time, it provides the advantage of diversification.
2. How can Indian investors invest in international mutual funds?
Indian investment companies that invest in foreign partner schemes or ETFs provide access to these funds.
3. Do international mutual funds provide better returns than Indian funds?
Not necessarily. They help diversify the portfolio and reduce risk. Returns depend on whether the global market performs and currency movement.
4. What is the taxation on international mutual funds in India?
For taxation purposes, they are classified as debt funds, with a benefit of indexation (tax benefit) for long-term investments over three years.
5. How should I choose the best fund?
Review fund performance over a 3-5 year period, examine the schemes performance , expense ratio and global equity flattening fund exposure before investing.