Make regular investment in Apple, Tesla, Amazon and other global stocks easily via mutual funds

• International mutual funds in the industry include equity funds that primarily invest in stocks of companies listed outside India.
• Such funds help an investor diversify its investment portfolio and offer opportunities to invest in foreign markets.
• Here is everything you need to know before having an exposure to international funds.

As fancy as investment in global giants like Apple, Tesla, Facebook may sound, it is easy to invest in such stocks from India in a secured way.

Moreover, you don’t have to buy stocks yourself, investment companies like mutual funds will do the work for you. Mutual funds offer international funds/overseas/foreign mutual funds that invest in companies listed on foreign stock exchanges. This makes it convenient for people who are not well versed with lengthy investment processes in foreign land.

One can make one-time or regular investments in a particular mutual fund that invests in such stocks. The fund manager of the mutual funds takes care of how much exposure in which stock.

Such types of international funds have a pre-designed portfolio consisting of a particular number of stocks of foreign companies. And like any other mutual funds, they are regulated by the Securities Exchange Board of India (SEBI).

Now there are a host of thematic international funds available in the industry like thematic funds based on a specific sector eg: technology, region wise fund eg: China stocks etc., and each of these funds takes a different approach to global investing. It’s up to you which fund to consider that suits that investment and risk profile. One can consult a financial advisor as well to help understand the difference.

Merits of investing in international funds

• Helps diversify investment
• Easy access to foreign company shares
• Ownership of shareholding in large firms like Apple, Microsoft, Tesla
  

Most of the international mutual funds in India invest directly in an already established foreign mutual fund. Simply put, most international mutual funds in India invest in other mutual funds in any foriegn country instead of directly investing in stocks there. This is called funds of funds (FoFs).

Here are the top five international mutual funds as per highest returns in the last three years.

Fund name	Returns in last 3 years
DSP World Mining	28.46%
Motilal Oswal NASDAQ 100 ETF	26.64%
Motilal Oswal NASDAQ 100 FoF	25.75%
Aditya Birla Commodity Equities Fund - Global Agri Plan	22.17%
DSP World Gold	20.32%

(Source: Value Research)

Click here to understand the tax structure of investing in foriegn company stocks.

Also, note that currently several international funds are not accepting fresh investor inflows due to overseas investing limits. The regulator has specified an overall industry level limit of $7 billion for mutual funds to invest in overseas securities and funds, which has already been breaches. Hence several funds are not allowing new investment.

Disclaimer: The article is just for informational purposes and it should not be taken as investment advice. Do your own research before investing.


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