At some or the other point in time, each investor gets attracted to the prospect of making investments at a global level i.e. taking the global exposure to international companies and markets.
We'll also discuss the benefits, advantages, disadvantages and risks involved in making investments in Global Funds, but let's being with the list of all available options for investing in Global Funds in India.List of Global Funds in India
This list is not any particular order (like performance, etc. but just listed in a random fashion)- AIG World Gold Fund: Deatils of AIG World Gold Fund.
Focussed on Gold, this fund is reported to give around 39% annual return in last one year.
- DSP BR World Gold Fund:
This is from the house of DSP BlackRock. Another global fundd focussed on Gold.
Last 1 year returns have been around 29%
Now, shifting away from Gold, here are the other Global Funds from other categories.
- DSP BR World Energy Fund:
Another Global Fund from DSP BlackRock house, focussed on Energy sector at a global level.
Energy has been a hot area for investments and such sector specific funds do offer a good opportunity to capitalize on the volatility. Last one year annual returns have been reported to be around 26%
- ING OptiMix Global Commodities Fund: ING OptiMix Global Commodities Fund Details
Another good sector specific option, but focussing on entire Global commodity space. Last one year returns have been around 25%
- Mirae Asset Global Commodity Stock Fund MAGCSF: Details of Mirae Asset Global Commodity Stock Fund MAGCSF. Another commodity focussed fund on global level from Mirae asset fund management.
- DSP BR World Mining Fund:
A fund investing your money in the mining sector, from the house of DSP BR. Last one year returns have been around 22%.
- Fidelity Global Real Assets Fund:
One of the largest fund managers across the globe, Fidelity has a presence in India with their Global fund called the Fidelity Global Real Assets Fund. This one is focussing on Real Estate and related businesses at global level. Last one year performance returns has been around 25%.
Birla Sun Life also has a lot of variety in offering for Global investments. Their global funds include the following:
- Birla Sun Life Global Agri Plan
- Birla Sun Life CEF Global PMP
- Birla Sun Life CEF Global MCP
What are the benefits and advantages of investing in Global Funds?
The biggest advantage is that you get opportunities to invest at a global level. Say, there may be problems in your local market like India - political unstability, high gap in demand and supply, etc. which might hurt the returns from this local market. Hence, having some investments in overseas companies and funds help you mitigate this effect. Suppose things are well and stable in USA and UK, then even though your domestic returns are taking a hit, your investments in global companies through these global funds will not get hit because of these local problems.
Global funds also offer diversification - across sectors, across countries, across geographies, etc. which again is an advantage of global funds.
What are the risks and disadvantages of investing in Global Funds?
The biggest risk is related to the advantage discussed above. What if your local market investments is stable but the overseas countries where your Global funds have invested has a problem. You will take a hit on that note - take example of Libya, Egypt, unrest going on now causing a hit on Crude Oil prices.
Then, there is currency risks - investments overseas has the implicit risk of forex charges and forex exchange rate risk. Even if your investments are going good outside, your net return might become low because of exchange rate changes
High Charges - Since overseas investments involve lot of money transfers and forex exchanges with various kinds of charges and stamp duties to be paid as per the country or market specific requirements, the fund management charges for Global Funds are usually high.
So weigh your pros and cons, and then decide to invest in Global Funds
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