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Nowadays, many investors look to diversify their investment Portfolio across geographical boundaries. Such investors invest in global fund. Global funds have opened a window for Indian investors to international asset markets and have facilitated diversification. These funds primarily invest in companies, which are spread across the world. One of the important benefits of investing in this fund is that your investment is just not concentrated to one country, it is diversified across various markets to earn benefits from International trade developments.
Investing in global funds requires in-depth knowledge of the Market around the world. Investors need to be constantly aware of the current political-economic situation because a negative political scenario of a region can risk the investment. Thus, investors should make a conscious effort to keep a track of Economics in a foreign market. Investors can choose a fund from the below-listed top performing global/international fund.
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Fincash has employed the following parameters for shortlisting the top performing funds:
Past Returns: Return analysis of last 3 years
Parameters & Weights: Information ratio with some modifications for our ratings and rankings
Qualitative & Quantitative Analysis: Quantitative measures like Expense Ratio, Sharpe Ratio, Sortino Ratio, Alpa, Beta, Upside Capture Ratio & Downside Capture Ratio, including fund age and the size of the fund has been considered. Qualitative analysis like the reputation of the fund along with the fund manager is one of the important parameters that you would see in the listed funds.
Asset Size: The minimum AUM criteria for Equity Funds are INR 100 Crores with some exceptions at times for new funds that are doing well in the market.
Performance with Respect to Benchmark: Peer average
Some of the important tips to consider while investing in global funds are:
Investment Tenure: Investors planning to invest in global funds should stay invested for minimum 3 years.
Invest via a SIP: SIP or Systematic Investment plan is the most efficient way to invest in a Mutual Fund. They not only provide a systematic way of investing, but also ensures regular investment growth. Also, due to their investment style, they can prevent the pitfalls of equity investments. You can invest in a SIP with an amount as low as INR 500.