Close Menu
Fund Focus News
    Facebook X (Twitter) Instagram
    Trending
    • Premium Bonds tax rule could lead to HMRC bill
    • Funds for new Aboriginal child and family centre
    • Using a lump sum calculator before investing in mutual funds can help you avoid these three mistakes
    • Trump admin illegally froze Harvard funds, Judge says : NPR
    • Which ETF Should You Buy? How to Screen ETFs by Sector, Theme, Leverage, and More
    • Trust deed signed for new Midland Bank-sponsored mutual funds
    • Ethereum exchange reserves fall 38% as ETFs and treasuries lock up ETH
    • NBA legend Kevin Durant acquires minority stake in Paris Saint-Germain, expands partnership with Qatar Sports Investments | NBA News
    Facebook X (Twitter) Instagram
    Fund Focus News
    • Home
    • Bonds
    • ETFs
    • Funds
    • Investments
    • Mutual Funds
    • Property Investments
    • SIP
    Fund Focus News
    Home»Mutual Funds»Investing in global funds offer hedge, diversification and access to growth sectors, say experts
    Mutual Funds

    Investing in global funds offer hedge, diversification and access to growth sectors, say experts

    May 14, 2025


    In today’s volatile markets, both in India and abroad, global investing has become more than just an option—it’s an important strategy for long-term wealth creation.

    According to Niranjan Avasthi, Senior Vice President at Edelweiss Mutual Fund, “If you want winning markets in your portfolio, you need to invest beyond India.” He points out that while India has performed well in recent years, the US and China have consistently delivered strong returns and dominate global market capitalisation.

    One hidden advantage of global investing is currency depreciation. “The rupee has depreciated 3% to 4% annually against the dollar over the last 30 years,” Avasthi said. “The S&P 500 returned 12.75% in dollar terms over the past decade, but in rupee terms, it gave 16%.” That difference, he explains, is purely from currency movement—an added benefit for Indian investors holding dollar-denominated assets.

    Nasser Salim, Managing Director of Flexi Capital, agrees. “Global funds need to be part of your portfolio,” he said, citing four reasons: geographic diversification, access to sectors absent in India, currency hedging, and market-cycle balance. He emphasises that international assets act as a natural hedge, especially for long-term goals like children’s overseas education.

    Diversification also means exposure to sectors missing in Indian markets—like global technology giants, luxury brands, or healthcare innovators.

    Both experts warn against trying to time the market. Instead, they advocate for a steady, strategic allocation to international funds—starting small, around 5% to 10%, and growing it based on your goals. Avasthi highlights that “even in India, it’s hard to get in and out of the market at the right time. Globally, it’s even harder.”

    The US and China remain the two most important international markets. While the US continues to offer growth via large-cap tech companies, China provides niche opportunities in energy transition and electric mobility. “A staggered approach to US equity is prudent right now,” Salim said. For China, he sees long-term potential despite near-term uncertainties.

    Investors must also choose between active and passive strategies. According to Salim, of the 66 international mutual fund schemes currently available, 57% are passive and 43% are active. Passive funds track indices like the S&P 500 or MSCI China, while active funds are managed by professionals and can tap into specific global themes.

    However, Avasthi cautions against blindly opting for ETFs. Many Indian investors are unaware that ETFs can trade at a significant premium to their actual value. “Even if the market gives zero return and the premium drops, your return can be negative,” he said. In such cases, he suggests choosing actively managed funds of funds (FoFs) instead. “Go via SIPs, use simple active FoFs, and don’t worry about the rest.”

    Ultimately, both Avasthi and Salim agree on a core-satellite approach: maintain a strong domestic core portfolio, but add global exposure as a satellite component. This, they say, is the best way for Indian investors to build wealth over the long term while managing risks effectively.

    Watch the accompanying video for more



    Source link

    Share. Facebook Twitter Pinterest LinkedIn Tumblr Telegram Email

    Related Posts

    Using a lump sum calculator before investing in mutual funds can help you avoid these three mistakes

    September 3, 2025

    Trust deed signed for new Midland Bank-sponsored mutual funds

    September 3, 2025

    A Fidelity Fund Misses Out on Soaring Bank Stocks

    September 3, 2025
    Leave A Reply Cancel Reply

    Top Posts

    Premium Bonds tax rule could lead to HMRC bill

    September 3, 2025

    définition (Contrats à Impacts Social)

    October 12, 2016

    Qu’est-ce qu’un green bond ?

    December 7, 2017

    les cat’ bonds deviennent incontournables

    September 5, 2018
    Don't Miss
    Bonds

    Premium Bonds tax rule could lead to HMRC bill

    September 3, 2025

    The prize fund rate for Premium Bonds recently changedPremium Bonds savers have been warned about…

    Funds for new Aboriginal child and family centre

    September 3, 2025

    Using a lump sum calculator before investing in mutual funds can help you avoid these three mistakes

    September 3, 2025

    Trump admin illegally froze Harvard funds, Judge says : NPR

    September 3, 2025
    Stay In Touch
    • Facebook
    • Twitter
    • Pinterest
    • Instagram
    • YouTube
    • Vimeo
    EDITOR'S PICK

    Mutual Funds vs PPF: Where you should invest and why

    February 25, 2025

    Arlington to pay highest interest rates on bonds in 16 years

    July 12, 2024

    7 Best Treasury ETFs to Buy Now

    June 16, 2025
    Our Picks

    Premium Bonds tax rule could lead to HMRC bill

    September 3, 2025

    Funds for new Aboriginal child and family centre

    September 3, 2025

    Using a lump sum calculator before investing in mutual funds can help you avoid these three mistakes

    September 3, 2025
    Most Popular

    🔥Juve target Chukwuemeka, Inter raise funds, Elmas bid in play 🤑

    August 20, 2025

    ₹10,000 monthly SIP in this debt mutual fund has grown to over ₹70 lakh in 23 years

    June 13, 2025

    ₹1 lakh investment in these 2 ELSS mutual funds at launch would have grown to over ₹5 lakh. Check details

    April 25, 2025
    © 2025 Fund Focus News
    • Get In Touch
    • Privacy Policy
    • Terms and Conditions

    Type above and press Enter to search. Press Esc to cancel.