Mutual fund tips! Accumulate more money; this investment option can help you

Amid volatile share market, these Mutual Funds help an investor to accumulate more money from the international stock market through the Asset Management Company route.

Tax and investment experts are of the opinion that one can't invest beyond a certain limit in global equity markets but this mutual fund investment makes it possible. Photo: Reuters

When the stock market is volatile, mutual funds investment returns get jeopardized. The mutual fund capital gains in the volatile share market fail to meet the expectations of investors. for such mutual fund investors, investment in international equity markets can be a better option. But, there is a cap on direct equity investment in international stock markets. However, if someone has investments in international mutual funds, then he or she can make indirect investments in the global bourses through the AMC route.

Explaining the meaning of the international Mutual Fund and what could be its benefits if an investor decides to buy into it, 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." Raghav of PersonalFinancePlan.com said that investing in International Mutual Fund is nothing but an indication that the investor believes in extensive diversification of its portfolio.

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On portfolio, 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 into 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 as a rescue for an investor from the international stock market.

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

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