Why you should Invest in a Global Fund ?

October 18, 2024

Why you should Invest in a Global Fund ?

Investors shy away from the international funds as they find them risky and complicated. But this is not true. The International funds offer excellent investment opportunities with parallel risks. We will help you understand how the International stocks and funds offer you an opportunity to diversify, provide higher growth opportunities, and have the potential to lower risk in your portfolio.

Technological advancements and disrupters in the US, Natural Resources in Australia & Brazil, A young & educated workforce in Singapore are some of the examples of diversified global opportunities.

Kay Takeaways

Explore the growth opportunities in the global market space
Global Investing will help in Reducing Risks
Impact of Currency fluctuation on the returns
Recommended Global Funds
NFO Review – Axis Global Alpha Equity Fund

Explore the growth opportunities in the global market space

India has more than 5000 listed companies but accounts for only 3% of the world market share
Very few Indian Companies in the near term can achieve the global stature, global scale, customer base, and competitive moat which giants listed in global markets have.
Investment Opportunities in the sunrise sectors are missing as such kind of companies are not listed on Indian exchanges. For e.g E-commerce Giant like Alibaba, Amazon or Internet giants like Facebook & Alphabet.

Global Investing will help in Reducing Risks

IIt is percived widely that the investment in global markets will expose us to higher risk, but data show otherwise. India being a developing economy has higher volataility as compared to developed economies.

Even the low co-relations between different markets can bring down the risk in your investment portfolios. The Corelation of Indian markets with other markets can be summarised as below
US Markets 0.13 Japan 0.13 UK 0.30 China 0.43 Europe (excl. UK). 0.30 World 0.25

Does the above surprise you .. You always thought Indian and US markets move together isnt it… The above data is from 1st Jan 2003 to 31st March 2020 – co-relation on daily returns series considered over the period. Source : Axis AMC and BloombergDifferent markets globally have performed in different ways at different times, have a look

Impact of Currency fluctuation on the returns

Indian economic condition combined with its global trade situation has always made the case of a Depreciating currency. The rupee has depreciated from Rs 43.07/- on 1st March 07 against a dollar to Rs.73.52 currently.

The Indian Investors have benefited from the depreciating currency.The Global Investment will also act as a hedge for the investment of your goals to be funded by foreign currency. The goal of sponsoring Education fees for your children in a foreign land may be achieved by investing systematically in the global funds and protect yourselves from the currency risk.Recommended Global Funds.