Gold price falling and stock market volatile! Expert reveals money-making tip

When the stock markets behave in a topsy-turvy manner, investors can garner better returns from certain investments. Experts reveal these money-making tip.

Experts say these mutual funds mainly invest in the US, European and to some extent in emerging economies like Indonesia, Brazil etc. Photo: PTI

Investors are wondering how to make money as the stock market are volatile with Nifty making simple harmonic motion around 12,000 level while gold price rose after falling for three consecutive trade sessions. Money making solution? Tax and investment experts have started to press the case for a diversified investment portfolio. They are of the opinion that when the equity market is not giving better returns, investors can move to the international equity market! But, there is a limit to which an investor can invest in the international equity market. So, to cross that bar, International Mutual Fund is a better option for investors. They said that even when you have enough exposure in gold (bonds, ETF and physical), one should have some exposure in the international mutual fund also - this is a win-win strategy.

Elaborating upon the international Mutual Funds and the benefits to be derived from them for investors, Deepesh Raghav, Investment Advisor at PersonalFinancePlan.com said, "Difference between International Mutual Funds and Indian Mutual Funds is simple. A mutual fund whose asset manager invests in the Indian indices is called Indian Mutual Fund whereas if an asset manager invests in stocks market outside India then such a mutual fund is called International Mutual Fund."

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Raghav said that investing in International Mutual Fund is nothing but an indication that these investors believe in extensive diversification of their portfolios.

Asked about how much an investor can opt to invest in an International Mutual Fund, Kartik Jhaveri, Director — Wealth Management at Transcend Consultants said, "A mutual fund investor can allocate around 10-15 per cent of his or her portfolio fund in International Mutual Funds."

He went on to add that International Mutual Funds are subject to various indicators like rupee-dollar deviation, political set up etc. He said that generally, a Mutual Fund investor gains when the rupee gains against the US dollar but in the case of International Mutual Funds, an Indian investor gains even when the Indian National Rupee (INR) falls against the US dollar (USD). Therefore, when the Indian equities fail to perform, International Mutual Funds came to the rescue.

"Mutual fund investors mainly invest in America, European and to some extent into the emerging economies like Brazil, Indonesia etc.," said Raghav.

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