This blog contains a list of the best international funds for 2021. Find out more about the types of international mutual funds in India and how you can invest in them.
[Updated - July 2023]
Picking stocks on your own can be challenging especially when it comes to international companies because there are too many options and factors that you need to evaluate.
However, there’s a solution: International mutual funds! In this blog, we’ll walk you through some fundamentals and share some of the best international funds currently being recommended on Cube Wealth.
International funds are Indian equity funds that invest in the shares of foreign companies like Apple, Amazon, Barclays, Deutsche Bank, Fiat, Novartis, etc.
International mutual funds ensure that you do not have to deal with the time-consuming and complex task of picking individuals foreign stocks on your own.
A fund manager does that for you with the fund’s portfolio of international holdings. But that’s not all. Investing in an international fund is as easy as investing in any other mutual fund.
Other highlights of international funds:
Broadly speaking, international funds are of 3 main types based on where they invest in. Furthermore, there are 3 subgroups of top international mutual funds based on how they invest. Before adopting any investment strategy, it's advisable to download the Cube Wealth app and consult a Cube Wealth Coach who can provide guidance based on your risk tolerance.
This group includes global, regional, and sectoral international mutual funds.
The term global international funds may seem like a tautology but there’s a reason for that. Global funds invest in stocks from across the world and not just one country.
For example, PGIM India Global Equity Opportunities Fund invests in stocks from the USA, France, Singapore, Netherlands, Switzerland, and more through the PGIM Jennison Global Equity Opportunities Fund.
Regional international mutual funds are the opposite of global funds. They invest in the stock market of only one country or region. Index funds are a great example.
They track one index from a single market (country). For example, Motilal Oswal S&P 500 Index Fund, which invests in all the stocks from the US index S&P 500.
Thematic or sectoral funds are highly specialised funds that look to gain from the benefits of a specific sector. For example, healthcare, power, consumer durables, and others.
There are 3 main types of international funds apart from the typical international funds that buy and sell stocks directly. These include index funds, fund of funds, and feeder funds.
International index funds track a particular index like the S&P 500 or FTSE 100. Their portfolio will mirror the index they’re tracking. For example, an S&P 500 index fund will include all stocks from the index.
Index funds, in general, look to generate returns that are on par with the market. Furthermore, most index funds are passively managed so their investment fee is known to be relatively low.
An international fund of fund scheme invests in the units of another mutual fund instead of buying and selling stocks itself. It’s important to note that fund of fund schemes can invest in multiple mutual funds.
An example of an international fund of fund scheme in India includes Edelweiss Greater China Equity Off-shore Fund. It invests in the units of the JPMorgan Funds - Greater China Fund.
In principle, an international feeder fund is similar to a fund of fund scheme but with one main difference - it only has one parent fund known as the master fund.
A feeder fund basically transports money that’s pooled from several investors to the master fund. For example, Franklin India Feeder - Franklin U.S. Opportunities Fund.
Through the Cube Wealth app, Wealth First, Cube's mutual fund advice partner, handpicks the finest international fund for you. However, at Cube Wealth we recommend that you consult a financial advisor or a Cube Wealth Coach before investing in any asset, because investing always involves some risk and it is best to seek advice when investing.
Invesco EQQQ Nasdaq 100 ETF is the top fund that Cube Wealth suggests you if you want to invest in international funds. However, we have highlighted a few more international funds that may emerge in the future.
Invesco EQQQ NASDAQ-100 ETF FoF - Direct Plan is Open-ended International Equity scheme which belongs to Invesco Mutual Fund House. The schemes seeks to generate returns by investing predominantly in units of Invesco EQQQ NASDAQ-100 UCITS ETF, an overseas exchange traded fund, which seeks to provide investment results which, before expenses, generally correspond to the price and yield performance of the NASDAQ-100 Notional Index (Net Total Return) in USD.
Let’s take a look at one of the top holdings in the portfolio of the Invesco EQQQ Nasdaq 100 ETF Fund of Fund.
The fund has the majority of its money invested in Financial sectors. It has taken less exposure in Financial sectors compared to other funds in the category.The fund's top 5 holdings are in Franklin India Feeder Franklin US Opportunities Fund.
Let’s take a look at one of the top holdings in the portfolio of the Franklin India Feeder Franklin US Opportunities Growth Fund:
DSP World Mining Fund invests primarily in leading international companies in the mining and metals sector. It does this by investing in the BGF World Mining Fund. This fund strongly believes in the future growth-potential of international mining, metals & industrial companies.
Let’s take a look at one of the top holdings in the portfolio of the DSP World Mining Fund
ICICI Prudential US Bluechip Equity Direct Plan-Growth is a International mutual fund scheme from Icici Prudential Mutual Fund.
The fund has the majority of its money invested in Services, Technology, Financial, Capital Goods, Healthcare sectors. It has taken less exposure in Services, Technology sectors compared to other funds in the category.
Let’s take a look at one of the top holdings in the portfolio of the ICICI Prudential US Bluechip Equity Direct Plan Growth Fund
Motilal Oswal Nasdaq 100 Fund of Fund (G) is a US Equity International Equity scheme predominantly investing across International Equity instruments with an investment objective to generate wealth over the long term.
Let’s take a look at the holding in the portfolio of the master fund, Motilal Oswal Nasdaq 100 Fund of Fund (Growth).
PGIM India Global Equity Opportunities Fund Direct-Growth is a International mutual fund scheme from Pgim India Mutual Fund.The fund has the majority of its money invested in Financial sectors. It has taken less exposure in Financial sectors compared to other funds in the category.
Let’s take a look at the holding in the portfolio of the master fund, PGIM India Global Equity Opportunities Fund Direct-Growth.
Edelweiss Greater China Equity Off-shore Fund Direct-Growth is a International mutual fund scheme from Edelweiss Mutual Fund.The fund has the majority of its money invested in Financial sectors. It has taken less exposure in Financial sectors compared to other funds in the category.
Let’s take a look at the holding in the portfolio of the master fund, Edelweiss Greater China Equity Off-shore Fund.
ICICI Prudential Global Stable Equity Fund (FOF) Direct-Growth is a International mutual fund scheme from Icici Prudential Mutual Fund. The fund has the majority of its money invested in Financial sectors. It has taken less exposure in Financial sectors compared to other funds in the category.
Let’s take a look at the holding in the portfolio of the master fund,ICICI Prudential GlobalStableEquityFund
Investing in international funds is as simple as investing in any other mutual fund. This means that you have two options:
Intermediaries like investment apps allow you to buy regular international mutual funds. Regular international mutual funds typically have a higher expense ratio than direct international mutual funds. But they're ideal for busy professionals who have no time to for in-depth research. You may also see a Cube Wealth Coach or download the Cube Wealth app to effectively implement these tactics and accomplish long-term financial objectives.
AMCs offer a way to buy "direct" international mutual funds. The investment cost, mainly the expense ratio, for direct mutual funds is lower than regular mutual funds.
However, you'll have to do the research yourself and pick international funds that suit your investment portfolio.
Here's how handpicked mutual funds work on the Cube Wealth app
Note: Facts & figures are true as of 15-10-2021. All information mentioned is for educational purposes and relies on publicly available information. None of the information shared here is to be construed as investment advice. We strongly recommend you consult a Cube Wealth coach before investing your money in any stock, mutual fund. PMS or alternative asset.
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