How do Domestic Index Funds stack up against IMFs?Īdmittedly, IMFs are not the only investment option that got a boost because of the pandemic. Related: Diversify your equity portfolio by investing in stocks overseas
Here are the top 10 International Mutual Funds (5 year returns considered) as on 27 April 2021, as per data released by Value Research: Top 10 International Mutual Funds in India
Currently, Indian investors have the option to invest in the US, Europe, China, Brazil, and Asian and Emerging Markets. Investing in IMFs is similar to buying a regular fund – through distributors, AMCs, online portals etc. In that case, now would be a good time to look at International Mutual Funds (IMFs), which invest only in foreign companies and foreign markets. If, as an investor, you are keen on diversification, you too could perhaps think of including a few overseas stocks. What this means is those interested in investing in international stocks will find fund houses in a better position to accommodate them. Apparently, many of these AMCs were close to the previous foreign investment limit of $600 million and needed room to absorb more investors. Subsequently, fund houses approached SEBI for an upward revision of the overseas investment limit.
#TOP 25 BEST PERFORMING MUTUAL FUNDS FULL#
Simply put, Indian investors had begun looking at overseas options when the full impact of the lockdown and the pandemic started being felt in the markets. Why the overseas investment limit was raisedĪccording to reports, the search for ‘FAANG company’ – meaning Facebook, Amazon, Apple, Netflix, and Google – grew more than 5000% in India in April 2020, the first full month of the nationwide lockdown.īy Google standards, a 5000% growth in a search term is a ‘breakout’. Alongside, the market regulator also raised the maximum investment limit in overseas ETFs from $200 million to $300 million.Īccording to media reports, this decision was taken in view of an enhanced new appetite for global stocks among Indian investors. On June 3, SEBI issued a circular raising the overseas investment limit for an individual Mutual Fund house from $600 million to $1 billion. There’s some good news for domestic investors who want to diversify their portfolio with an international exposure: the Securities and Exchange Board of India (SEBI) has just taken some more steps to facilitate this.