Best International Mutual Funds 2024

Introduction to International Mutual Funds

Investing in international mutual funds provides Indian investors with an opportunity to diversify their portfolios beyond domestic markets. These funds invest in equities and debt instruments of companies and governments outside India, offering exposure to global markets.

In this blog, we will explore the best international mutual funds for 2024, focusing on US mutual funds that are accessible to Indian investors. Understanding these options can help you make informed investment decisions and potentially enhance your portfolio's performance.

 

Detailed Video

 

Why Consider International Mutual Funds?

International mutual funds bring several benefits to investors, including:

• Diversification
• Exposure to global markets
• Potential for higher returns
• Currency diversification
• Access to leading global companies

Diversifying your investment portfolio with international mutual funds can mitigate risks associated with domestic market fluctuations and provide opportunities for growth in emerging and established markets.

 

Top US Mutual Funds to Invest from India in 2024

Here are some of the best US mutual funds that Indian investors can consider in 2024:

• Franklin India Feeder - Franklin U.S. Opportunities Fund
• Edelweiss US Technology Equity Fund of Fund
• ICICI Prudential US Bluechip Equity Fund
• Mirae Asset US Equity Fund
• Motilal Oswal Nasdaq 100 ETF

Each of these funds offers unique benefits and caters to different investment goals. Let's delve into the specifics of these funds to understand their offerings better.

 

 

Franklin India Feeder - Franklin U.S. Opportunities Fund

This fund primarily invests in the Franklin U.S. Opportunities Fund, which focuses on growth stocks across various sectors in the US market. It aims to provide long-term capital appreciation by investing in companies with strong growth potential.

Key Features:

• Focus on growth stocks
• Diversified sector exposure
• Long-term capital appreciation

Investors looking for growth opportunities in the US market may find this fund appealing due to its diversified approach and potential for high returns.

 

Edelweiss US Technology Equity Fund of Fund

This fund invests in the JP Morgan US Technology Fund, providing exposure to the rapidly growing US technology sector. It aims to capitalize on the innovation and growth potential of leading tech companies.

Key Features:

• Focus on US technology sector
• Exposure to leading tech companies
• Potential for high growth

For investors interested in the technology sector, this fund offers an opportunity to invest in some of the most innovative and high-growth companies in the world.

ICICI Prudential US Bluechip Equity Fund

This fund invests in blue-chip companies listed on the US stock exchanges, focusing on large-cap stocks with strong financials and stable growth prospects. It aims to provide long-term capital appreciation and stability.

Key Features:

• Focus on large-cap blue-chip stocks
• Stable growth prospects
• Long-term capital appreciation

Investors seeking stability and steady growth may find this fund suitable due to its focus on established and financially strong companies.

 

Mirae Asset US Equity Fund

This fund aims to provide long-term capital appreciation by investing in a diversified portfolio of US equities. It focuses on companies across various sectors with strong growth potential and competitive advantages.

Key Features:

• Diversified US equity portfolio
• Focus on growth potential
• Long-term capital appreciation

For investors looking for a balanced approach to investing in the US market, this fund offers diversification and growth prospects across multiple sectors.

 

 

Motilal Oswal Nasdaq 100 ETF

The Motilal Oswal Nasdaq 100 ETF aims to replicate the performance of the Nasdaq 100 Index, providing exposure to the top 100 non-financial companies listed on the Nasdaq stock exchange. It focuses on technology and innovation-driven companies.

Key Features:

• Replication of Nasdaq 100 Index
• Exposure to top 100 non-financial companies
• Focus on technology and innovation

Investors interested in a passive investment strategy with exposure to leading tech and innovation-driven companies may find this ETF appealing.

 

Factors to Consider When Investing in International Mutual Funds

Before investing in international mutual funds, consider the following factors:

• Investment goals
• Risk tolerance
• Fund performance
• Expense ratio
• Currency risk

Understanding these factors can help you make informed investment decisions and align your portfolio with your financial goals.

Investment Goals and Risk Tolerance

Define your investment goals and risk tolerance before selecting an international mutual fund. Are you looking for growth, income, or diversification? Understanding your objectives can help you choose the right fund that aligns with your financial goals and risk appetite.

Additionally, assess your risk tolerance to determine the level of risk you are comfortable with. International mutual funds can be volatile, so it's essential to choose funds that match your risk tolerance.

 

Fund Performance and Expense Ratio

Evaluate the historical performance of the fund and compare it with its benchmark. Consistent performance over the years indicates the fund's ability to generate returns. However, past performance is not a guarantee of future results.

Also, consider the expense ratio, which is the annual fee charged by the fund. Lower expense ratios can result in higher net returns for investors. Compare the expense ratios of different funds to choose the most cost-effective option.

 

Currency Risk

Investing in international mutual funds exposes you to currency risk. Fluctuations in exchange rates can impact the returns on your investment. Consider the currency risk associated with the fund and how it aligns with your investment strategy.

Some funds may offer currency-hedged options to mitigate this risk. Evaluate the currency risk and choose funds that align with your risk tolerance and investment goals.

 

Conclusion

Investing in international mutual funds can provide Indian investors with diversification, exposure to global markets, and potential for higher returns. The best US mutual funds for 2024 offer a range of options, from growth-focused funds to technology-driven funds and blue-chip equity funds.

Consider your investment goals, risk tolerance, fund performance, expense ratio, and currency risk before making a decision. By understanding these factors, you can make informed investment choices and build a diversified portfolio that aligns with your financial objectives.

Explore the mentioned funds, evaluate their features, and choose the ones that best suit your investment strategy. With careful planning and informed decisions, you can take advantage of the opportunities presented by international mutual funds and enhance your portfolio's performance in 2024.