Why Invest in International MFs

GLOBAL mutual fund, by definition is an equity MF that invests overseas in companies listed in both developed and emerging markets.

- PV SUBRAMANYAM

GLOBAL mutual fund, by definition is an equity MF that invests overseas in companies listed in both developed and emerging markets. They provide an opportunity to Indian investors to access quality global businesses, industries and themes that may not be or are inadequately available in the Indian market, enabling them to geographically diversify their portfolios.

Such funds are launched with the objective of tapping growth opportunities in countries like USA, Europe, Japan as well as China and Southeast Asia. Some are focused on a particular region, sector may have a diversified global investment approach and thus, based on investment style while certain funds may adopt region specific or sector specific patterns.