Facebook TwitterLinkedInYoutubewhatsapp Start Planning for your Financial goals
Schedule Your Free Consultation
  • Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer
Holistic investment planners, financial planning Chennai, Private wealth management Chennai

Holistic investment planners, financial planning Chennai, Private wealth management Chennai

Financial Planning chennai India, Private wealth management chennai India, Investment Advisory India, Systematic Investment Plan, Mutual Fund SIP, Mutual Fund ELSS, Tax Saving scheme

  • Home
  • About Us
    • Who we are & What we do
    • Services
      • Financial Road Map
      • Retirement Roadmap
      • Asset Allocation Plan
      • Webinar
      • Money Management
      • Wealth Management
    • In the Media
    • Testimonials
    • What Makes Us Different
    • How we can help you
    • Specialties
    • Honors and Awards
    • Vision & Mission
  • Resources
    • Blog
    • Articles
    • Podcast
  • Ideal Client
  • Contact Us

All You Need To Know About International Funds

by Holistic Leave a Comment | Filed Under: Investments

Listen to this article


Table Of Contents

1.)What is an International Fund?
2.)Types of International Funds
3.)Features Of International Funds
4.)Invest In International Funds

  • Portfolio Diversification
  • Geographical Diversification

5.)Things To Notice Before Investing In International Funds:
6.)Additional Risks
7.)Takeaways

8.)Conclusion

What Is An International Fund?

An international fund is an equity-oriented mutual fund that invests in companies all over the world. And the countries are based on the type of fund you choose.

With this fund, you can get exposure across other countries like US and UK.

That said, you must wonder, why should I invest in International Mutual Funds? Conveying its features might clear your doubt.

Types Of International Funds:

The following are a few types of international funds available.

Regional Funds: 

          When a mutual fund is invested in assets that belong to a specific geographic region, it is known as a regional fund. Values of regional funds change based on the social, economic, and political climate in that region.

Country Funds: 

          Mutual funds invested on assets belonging to a specific country are known as country funds. If you knew the country before investing, it would be easy to research and understand. It is a plus in Country funds.

Global Funds: 

          This type of fund invests in assets all over the globe, even your home country. 

Global Sector Funds: 

          These Global Sector Funds may sound similar to the last one. But this mutual fund chooses to invest in a particular economic sector. Then the money is combined and invested on assets that belong to a global sector. Global sector funds can then yield profit in a specific industry.

Thematic Funds: 

          When an investment is made based on a specific theme, it is known as thematic funds. If our investment theme is based on IT companies, the funds go only to those investments and not to any other fields. Examples of thematic funds include energy, consumption, etc.

What else do we need to know about International Funds? The following passage comes with the answer. 

Features Of International Funds:

i.) Investing Among Global Leaders: 

          Due to international exposure, your portfolio will be exposed internationally. And so, it will be stable. International exposure may include tech giants like Amazon and Apple. International funds Investments with these large-cap companies will give you good chances of getting stable returns.

ii.) International Exposure:  

          Depending on the type of mutual fund you choose, you can enjoy exposure to certain countries. Not only to developed countries but also chances to get into lucrative and unexplored markets like China, Taiwan, and South Korea.

iii.) Diversification: 

          All markets are not aligned to each other but depend on the corresponding country’s economy. While investing in the international fund, if there is a drop in one country, the international exposure will keep your portfolio safe. 

Example: If India faces an economic depletion, stocks here may fallout. But this could be an up-rise in other countries like UK or US. Due to exposure to the securities in these countries, your portfolio remains stable.

Also watch: US Funds or International Funds: What kind of allocation people can have?

iv.) INR Depreciation Benefit: 

          Indian stock markets linked with INR (Indian Rupee). So, if INR depreciates, then the value of Indian stocks will go down too. When there is depreciation in INR, the foreign exchange currency conversion factor goes in your favor on your international fund. It will increase the returns on your international funds. 

v.) Growing World Economy: 

          Due to the help of developed and developing markets, the world’s economy is growing exponentially. Investing in international funds is a good way to grow along with the growing world.

With all the features above and a diversified portfolio, an international fund reduces risk and gives you a chance for creating long-term wealth.

International funds have two types of diversification available. What are they?

Portfolio diversification:

 A balanced portfolio must have a combination of higher and lower-risk assets. So, you must’ve invested in small, medium, and large-cap companies with different risk levels. To tone your portfolio, investment in international funds is a better way. It creates a new risk layer and tones your portfolio.

Geographical diversification: 

Investing in an international fund helps us take advantage of the cyclic nature of the global market. So, if one country is down on the economy, the investments in other countries will make this risk even. 

Things To Notice Before Investing In International Funds:

Risk Assessment:

           Many international funds have performed well in the past years. Not all of them, so it is better to study the track record and operation history of a minimum of 7 years. That will give a clear picture of the fund. If you can’t find answers still, it is better to consult a financial planner.

Currency Exchange:

If you invest in international markets, the currency exchange rate among your country and the country you invest in impacts your profits. For instance, while you are investing in the US stock market, then INR will be converted to US dollars. When calculating NAV, the US dollar is converted back to INR. If INR depreciates, the corresponding appreciation in the US dollar will be included with your returns.

Aim For Long-term Investment:

          Long-term investments have got the higher potential to provide better capital appreciations. And long term means around a decade (10 years). So it is better to avoid short-term investments in international mutual funds.

Checking the diversification: 

          International funds invest in different sectors like agriculture, aviation, and automobile.  The more the diversification, the lesser the risk. Some funds are not much diversified as they claim to be. So, find whether a fund is diversified before investing.

Additional risks In International Funds:

Geopolitical Risk: 

          Since we are investing across countries, geopolitical risk is unavoidable. Any changes that occur in the country that you have invested in, will directly affect your portfolio performance.

Currency Depreciation:

           International funds in a few developing countries might give you better and lucrative returns. It also diversifies your portfolio. But, unlike developed countries, these country currencies might get depreciated. Which in turn affects your returns.

Growth Potential: 

          Investments in developed markets may be more stable and give us better returns. But on thecomparehand, compara,tively there is less potential for growth while investing in developed markets. Where in, investments in developing countries give more growth along with higher volatility. 

Takeaways:

  • Being an Indian investor, you may have assumptions to fully invest in developed countries given that they are more stable. Instead, start your investments with diversified Indian equity funds. Then you can allot 5% of your investments to international mutual funds. That should give you enough diversification.
  • Better avoid thematic international funds as they focus on particular sectors. This will increase the risk quotient of your portfolio.

Conclusion: 

       It is better to invest in International funds if you want diversification for your portfolio. After taking in everything above, still not convinced about diversifying with international funds? Then you may try consulting a financial planner. 

If you have any comments or questions, write them in the comment box below.

Or are you interested in creating a Comprehensive Financial Plan for your financial goals?

Skip the queue by registering for your 30 Minute FREE Financial Plan Consultation. Click the ‘‘BOOK YOUR SLOT NOW!’’ button below. 

Reader Interactions

Previous article: SBI Life Smart Wealth Builder Plan [Review of Benefits, Features, and Returns]
Next article: Small-Cap Stocks: Overview, Advantages, And Risks

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Primary Sidebar

Client Login

Recent Posts

  • How to Become a Crorepati by just Investing Rs. 10000 per month?
  • How to invest in Mutual funds without losing a single rupee?
  • Chit Funds vs Mutual Funds: Which is better to invest in the long run?
  • Max Life Flexi Wealth Plus: Review (2023) – Should you buy?
  • LIC Dhan Varsha Insurance Plan: Complete Analysis & Review – Should you buy? 
Jey S
Jey S
24. September, 2021.
I have been using Holistic Investment Planners for the last three years. Mr. Srinivasavaradhan answered all my questions and doubts very patiently during the first free consultation. I was able to clearly define my short-, medium- and long-term goals once I signed up for the comprehensive plan and got their investment plan suggestion to achieve my goals. They are very polite and highly professional whenever I contact them for any queries or make investments. They never pressurize you to invest on their recommended financial products. I would have been lost money by investing directly without their help since I do not have time and knowledge about different financial products. Risk planning is also done as part of financial planning. Truly, they are holistic planners when it comes to your financial planning. They help you to define your life goals, understand your financial resources and establish a plan to invest towards reaching those goals. They do review your plan as you progress to make sure that you are on correct path to achieve those goals. Kudos to the team and keep up the good work!!! I am happy that I found holistic investment planners for my financial planning and management.
aksaswadkar
aksaswadkar
24. September, 2021.
I was about to retire and really not understanding how to invest money to have financial freedom and fulfilling my goals. Was desperately searching on internet way out and fortunately came across Holistic Investment Planners. I read number of articles on their website and realized that this is the agency which I want and engaged their services for my retirement planning. It is an excellent experience to be associated with Holistic. Right from day one our interaction was fantastic and they gave me such a wonderful plan that I had never imagined. I am fortunate enough to be in the client list of Holistic. I have recommended Holistic to my friends as well.
Lionel Faber
Lionel Faber
16. September, 2021.
I've been availing their services for the past year. They are highly knowledgeable in the field and are very patient with all doubts and queries. Personalized financial planning is provided keeping your short term, medium term and long term goals in mind. They do not pressurize you to purchase schemes of their choice. They provide their input and suggestions and leave the decision up to you which shows their honesty and high principle.
Sridhar
Sridhar
8. September, 2021.
Financial planning brings peace in life. Holistic Investment have supported in arriving financial plan based on future goals. My investments are regular since then. They are professionals in their business, will recommend others.
Nitesh Agrawal
Nitesh Agrawal
6. September, 2021.
I have been using Holistic Investment Planners from last one year. The journey has been fantastic. Being a finance person myself I always thought we can look after and plan own finances also. However, due to lack of time and deciplain the things are not always as desired. After joining with Holistic Investment for the first time Icame to know the Financial goals and quantified them. Some dreams were unrealistic based on the earnings and savings so had a reality check. Also got the information and deciplain of investing on regular and more rewarding securities. I definetly suggest to use Holistic Investment Planners. They are professionals, available and hear youor full story before presenting plans. They are flexile in the sense if there are some urgent deviations required, they help to plan the same. For all professionals/individuals I would suggest using professional help of Holistic Investment Planners for best results in long term investment and financial goals achivements. Last advise will be to start early in your life. It really pays well to start in the beginning itself else the dreams needs to adjust :)
Swetha Vasanth
Swetha Vasanth
6. September, 2021.
This is my first year service with the Holistic Team and I would say that they are very much helpful in creating a financial plan and follow ups during the year. I would definitely suggest them if anyone who is willing to proceed with their savings professionally.
Joseph Mathias
Joseph Mathias
6. September, 2021.
I came to know about Holistic Investment Planners online while searching for different investment ideas. Once I contacted them the journey was very smooth. Mr. Ramalingam explained all the aspects of Financial planning in detail and it opened my mind. I realized how important it is to have a Financial planning. Mr. Rajan suggested all the requirements as per my goals and made a Investment plan keeping in mind of my goals. I started my Investment journey with them. I wish I had done it some years back then it would have been in a different level. Review meetings were held every six month to check the implementation of the plan and check the results as per the requirements and to check if any changes required. Overall it was a good experience with Holistic Investment team and would like to continue in the years to come.
Srinvas Kannan
Srinvas Kannan
30. July, 2021.
I came across Holistic investment planners almost 5-6 years back, but I did not have the trust since I had met a few of them who did not sound promising. Then I started investing through a financial advisor of my friend. After 4 years of investing the returns were very low. I was disappointed and started looking for financial advisors when I came across Holistic investment. I had a detailed discussion about my goals and the way they would approach achieving my goal before deciding to switch my investments to them. After a thorough analysis of my then existing portfolios, they suggested new ones and we zeroed-in on 6 schemes/funds where our investment would be split. I am glad I made the decision of switching over and taking Holistic planner's advise, my returns are handsome and I only wish I could have taken their help/advise 5 years back itself. Neverthless, I would like to recommend their services for investment and financial advise if someone is serious about their investments.
Shivaram Andiappan Selvaraj
Shivaram Andiappan Selvaraj
3. July, 2021.
I got a free first time consultation. I got my doubts resolved. They also gave additional advises for investment planning which was also useful.
Nellai B
Nellai B
26. June, 2021.
I have been associated with them for the past three years. They are very professional and polite in answering all our questions. I have complete trust in their suggestions. I strongly recommend for anyone. I am looking forward to have strong and successful association with them.
Google rating score: 4.4 of 5,
based on 61 reviews

Footer

  • Articles
  • Gallery
  • Ideal Client
  • Jobs(Full Time)
  • Podcast
  • Services
  • Testimonials

Connect With Us

Holisticinvestment.in
10/15, Second Cross Street,
Seethammal Extn.,
Teynampet,
Chennai – 600 018,
INDIA.

Copyright © 2022. Holisticinvestment.in | All rights reserved.    Cared with ❤ by T-Square Cloud

×