In the last one week, there has been a sharp decline in the international mutual funds triggered by sharp sell-offs in equities globally after US President Donald Trump announced reciprocal tariffs on some major economies, including China, the EU and India. In response, Europe and China also announced higher tariffs on the US, further escalating global trade war and adding to recession fears. Amidst all this trade tussle, global equity markets have seen trillions of dollars in investor money wiped out.
This has directly affected those investors who have invested in international mutual funds. In the last few days, the value of such funds has fallen by more than 13%. Of the 67 international mutual fund reviewed, none of the schemes gave positive returns in the last one week. The category average return for the international mutual funds stood at (-)7.92% in the last one week.
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10 worst-performing international mutual funds in 1 week:
1. Invesco India – Invesco Global Consumer Trends FoF: (-13.33%)
2. ICICI Prudential Strategic Metal and Energy Equity FoF: (-11.91%)
3. Mirae Asset Global X Artificial Intelligence & Technology ETF FoF (-11.70%)
4. DSP World Mining Fund of Fund (-11.67%)
5. Kotak Nasdaq 100 FOF (-11.13%)
6. Mirae Asset Global Electric & Autonomous Vehicles ETFs FoF (-10.91%)
7. Mirae Asset NYSE FANG+ ETF (-10.70%)
8. Motilal Oswal Nasdaq Q50 ETF (-10.64%)
9. Edelweiss US Technology Equity FoF (-10.51%)
10. SBI International Access – US Equity FoF (-10.28%)
(Data source: Value Research)
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International mutual funds: 3-month and 6-month performance
These funds’ performance over 3 months and 6 months has not been good either, giving investors up to (-)21% and (-)23.58% returns, respectively.
Now what should investors do in such a situation?
If you have invested in these funds, there is no need to panic. Remember, these funds are for long-term investment. Markets keep going up and down – this is a part of investing. In such a situation, withdrawing money in a hurry can lead to losses.
First think – for what purpose did you make this investment? For how long? And how much risk can you take? If your goal is long term, it is better to be a little patient.
Also read: Mutual funds sahi hai, But only if you invest wisely
International Mutual Funds: Risk and wisdom
These funds invest in companies that are outside India – like the US, Europe or Asian markets. These carry a higher risk – as currency fluctuations, global politics and the global economy affect these funds.
So, only those who can bear a little more risk and have an investment horizon of at least 5 years should invest in such funds. If you want to bring some diversification in your portfolio, then this can be a good option – you just need to take steps carefully.