What Are International or Global Funds?
International and Global Funds offer investors opportunities to diversify beyond domestic markets. International Funds invest in assets like stocks or bonds outside India, allowing exposure to global markets. There are over 71 such funds in India, but they are not yet widely popular. Global Funds, on the other hand, invest worldwide, including in the investor’s home country. Both types help reduce risk by spreading investments across different economies, but they also come with risks, such as currency fluctuations and political or economic instability in foreign countries.
While they offer growth opportunities, the complexities involved include differences in regulations, challenges in accessing information, and risks from exchange rate changes. Additionally, taxation for international funds is similar to debt funds in India, regardless of the asset class. Before investing, it’s essential to carefully consider your risk tolerance and the potential challenges of investing in foreign markets. Consulting an AMFI-registered mutual fund distributor or financial advisor can help you select the right international or global funds based on your investment goals, ensuring informed decisions and effective risk management.
