Global equity opportunities fund or international equity fund in India are the investment avenues people will advise you to invest in often. There are global equity funds in India that you can invest in. It doesn’t suit everyone and for that matter, all mutual funds don’t suit all. It suits those who have some experience in investing in a mutual fund. Those people who can keep track of the gains and losses of the equity funds in the foreign financial markets are the candidates for this fund. They can invest in an international equity fund in India if they have the risk appetite and have time to wait for a long time. It has been observed in the past, during the economic meltdown, the Indian SENSEX had been hit harder as compared to the meltdown’s effect on the international fund, such as the US fund.
Many people will advise you to invest in an international equity fund in India. For you, there is a global equity opportunities fund that promises to give you sound returns. This, provided you have someone at your elbow giving you professional advice. Mutual Funds that have some global exposure have attracted the attention of many investors. They are drawn to an international equity fund in India. Some of them do invest in global equity opportunities fund too.
If you have a long time horizon, you are the fit person to invest in an international equity fund in India.The global leaders in the US, like Google, Netflix, Amazon, Apple, Microsoft and so on, are doing business at a global level and quite successfully. These companies are strong enough to deal with a crisis like covid 19. There are market corrections due to which these companies are giving people an opportunity to enter the financial market.
When should you enter the international funds?
The reason to invest in an international fund is geographical diversification. You can invest in both Indian and international markets. When the Indian market is not performing well, other markets are performing well. It’s like putting your eggs in different baskets. If you add international funds to your portfolio, you will get good returns provided you invest in many economies. You should, however, be aware of the risks involved. You should know what kind of risk you can take, your goals should be in place, and there should be some investment objectives. You should also have a good portfolio in India. In that case, if something wrong happens abroad, the shock can be absorbed by your investment in global equity opportunities fund and other similar funds.
You should make sure that your investment is well spread out in different classes of assets. These are PF, PPF, real estate, FD, gold, mutual funds, stocks, and so on. You should not think of investing in foreign economies without having a sound footing in the Indian market.
An investment in an international fund gives you many benefits from different quarters. If you wish to send your child to study in foreign universities in the US, you will get benefits on dollar appreciation. You will be paying the fees in dollars.
You should be aware of the risks involved
There are so many advantages to investing in this scheme. You are going to gain at the end if you have a longer time to wait, a better risk appetite, and a bolder financial objective. Your investment is spread out in the economies of the world. There are certain risks involved also if you go in for global equity funds. These risks are related to the exchange rate of currencies in the world. If the rupee appreciates compared to the dollar or a foreign currency, the returns will take the blow.
Effect of taxes
There will be capital gains tax charged on you if you gain beyond 25000 dollars. It will be taxed the way gains on a debt fund investment. Income gained within three years of investing in the short-term capital gains tax. It will be calculated while working on your tax slab. There will be a 20 per cent tax for long-term capital gains.
How do you select these funds?
These funds are of different types. There are funds that are getting invested in different economies of the world and in different sectors too. Those individuals who target developed economies of the world will do well. These economies are like the economy of the US. These economies play a significant role in the financial markets. It is advisable that you stick to the mutual funds’ segment instead of going in for direct investment in the stock markets of these economies. Direct investment in the stock markets needs a lot of courage and experience as well.