Investing in international mutual funds offers Indian investors a chance to diversify their portfolios beyond domestic markets. These funds allocate investments in equities and debt instruments of companies and governments outside India, providing exposure to global markets.
In this blog, we will explore the best international mutual funds for 2024, focusing on US mutual funds accessible to Indian investors. Understanding these options can help you make informed investment decisions and potentially enhance your portfolio's performance.
Why Consider International Mutual Funds?
International mutual funds offer several benefits, including:
- Diversification: Spread risk across global markets.
- Exposure to Global Markets: Access growth opportunities worldwide.
- Potential for Higher Returns: Benefit from emerging and developed markets.
- Currency Diversification: Hedge against currency fluctuations.
- Access to Leading Global Companies: Invest in industry leaders.
Diversifying your portfolio with international mutual funds can mitigate risks associated with domestic market fluctuations and provide growth opportunities in both emerging and established markets.
Top US Mutual Funds to Invest from India in 2024
Here are some of the best US mutual funds for Indian investors in 2024:
Franklin India Feeder – Franklin U.S. Opportunities Fund
This fund primarily invests in the Franklin U.S. Opportunities Fund, focusing on growth stocks across various US sectors. It aims for long-term capital appreciation by investing in companies with strong growth potential.
Key Features:
- Focus on growth stocks
- Diversified sector exposure
- Long-term capital appreciation
Edelweiss US Technology Equity Fund of Fund
This fund invests in the JP Morgan US Technology Fund, offering exposure to the rapidly growing US technology sector. It aims to capitalize on the innovation and growth potential of leading tech companies.
Key Features:
- Focus on US technology sector
- Exposure to leading tech companies
- Potential for high growth
ICICI Prudential US Bluechip Equity Fund
This fund focuses on large-cap stocks with strong financials and stable growth prospects. It aims for long-term capital appreciation and stability by investing in blue-chip companies listed on US stock exchanges.
Key Features:
- Focus on large-cap blue-chip stocks
- Stable growth prospects
- Long-term capital appreciation
Mirae Asset US Equity Fund
This fund aims for long-term capital appreciation by investing in a diversified portfolio of US equities, focusing on companies with strong growth potential and competitive advantages.
Key Features:
- Diversified US equity portfolio
- Focus on growth potential
- Long-term capital appreciation
Motilal Oswal Nasdaq 100 ETF
This ETF aims to replicate the performance of the Nasdaq 100 Index, providing exposure to the top 100 non-financial companies listed on the Nasdaq stock exchange. It focuses on technology and innovation-driven companies.
Key Features:
- Replication of Nasdaq 100 Index
- Exposure to top 100 non-financial companies
- Focus on technology and innovation
Factors to Consider When Investing in International Mutual Funds
Before investing in international mutual funds, consider the following factors:
Investment Goals and Risk Tolerance
Define your investment goals and risk tolerance before selecting an international mutual fund. Are you looking for growth, income, or diversification? Understanding your objectives helps in choosing the right fund that aligns with your financial goals and risk appetite.
Fund Performance and Expense Ratio
Evaluate the historical performance of the fund and compare it with its benchmark. Consistent performance over the years indicates the fund's ability to generate returns. However, past performance is not a guarantee of future results. Also, consider the expense ratio, as lower expense ratios can result in higher net returns.
Currency Risk
Investing in international mutual funds exposes you to currency risk. Fluctuations in exchange rates can impact your returns. Consider the currency risk associated with the fund and how it aligns with your investment strategy. Some funds offer currency-hedged options to mitigate this risk.
