International funds, also known as global or foreign funds, are investment vehicles that pool money from investors to invest in a diversified portfolio of securities outside the investor’s home country. These funds provide exposure to a broad spectrum of international assets, such as stocks, bonds, and other financial instruments, allowing investors to participate in the global economy. Think of international funds as passports for your money. Just like a passport opens doors to new countries, international funds enable your investments to explore opportunities beyond your home market. They act as a bridge, connecting your portfolio to the dynamic landscapes of global financial markets.
International funds are suitable for a diverse range of investors, especially those looking to diversify their portfolios, capitalize on global growth opportunities, and hedge against risks associated with a single market. Investors seeking to broaden their investment horizons, manage geopolitical risks, and potentially benefit from currency movements can find value in international funds. Investing in international funds is akin to learning a new language. It opens up new avenues of understanding and expands your investment vocabulary. Whether you’re a seasoned investor or a beginner, exploring international funds can add a rich layer of diversity to your financial portfolio.
Global Diversification
Just as a well-traveled person gains a broader perspective, international funds offer diversification benefits by spreading investments across various countries and industries. This minimizes the impact of a downturn in any single market.
Access to Growth
Markets
Investing internationally is like tapping into vibrant and emerging markets. International funds provide exposure to economies with growth potential, offering opportunities beyond what may be available in domestic markets
Risk Management
Consider international funds as a shield against unforeseen events. By diversifying globally, investors can mitigate risks associated with regional economic fluctuations or geopolitical uncertainties in their home country.
Currency Opportunities
Currencies are like the spices of the financial world. International funds allow investors to navigate currency movements, potentially enhancing returns as currencies fluctuate against each other.
01
Global Equity Funds
These funds invest in stocks of companies from around the world, providing a diversified exposure to global equities.
02
International Bond Funds
These funds invest in bonds issued by governments or corporations outside the investor’s home country, offering diversification in fixed-income assets.
03
Emerging Markets Funds
Focused on developing economies, these funds target markets with high growth potential, albeit with higher volatility
04
Region-Specific Funds
Funds concentrating on specific regions, such as Europe, Asia, or Latin America, allowing investors to tailor their international exposure.
Market Exposure
Domestic funds primarily invest in securities within the investor’s home country, while international funds span multiple countries and regions.
Diversification
Domestic funds are limited to the economic conditions of a single market, whereas international funds offer broader diversification, reducing the impact of local economic fluctuations.
Risk and Return Dynamics
International funds may involve different risk and return dynamics due to exposure to varied global markets, currencies, and economic conditions, providing a unique risk-return profile compared to domestic funds.
Currency Considerations
While domestic funds are typically denominated in the local currency, international funds may be subject to currency fluctuations, impacting returns positively or negatively based on currency movements.
Curious about our investing process? Screen your current equity holdings for free with our proven approach. Simply follow the steps below.
01
Sign up with your name and number
02
Manually upload your stocks, portfolio, or CDSL statement
03
Download your portfolio along with remarks based on our investing process
Need Guidance ? Call us to set up a 30-minute free advice call