Equity - International Funds

What are Equity International Funds ?

Subramanian
Goals, Mutual Funds
Equity - International Funds

One of the risks that recently have been talk of the town are geographical risks . Despite the world which is so interconnected now and any event has repercussions across the world, there are still inherent geographical risks which are local .

US Economy

  1. US economy is the largest and most important in the world.
  2. US economy represents about 20% of total global output .
  3. US economy features a highly developed and technologically advanced services sector .

If you look a the top 10 companies in the world , you will find all the technology companies occupying this space. Earlier they were the oil companies, but still American companies. Surprisingly they find a way to occupy the top spaces in almost all segments. You have definitely heard of Apple , Google , Amazon , Facebook , IBM , Accenture , Intel , Adobe . Manufacturing and servicing industry are thriving in USA. In the last 20 years, there has been immense growth in robotics and areas where there is limited requirement of human beings doing mundane things.

In fact there are many who enamour the tremendous potential in such organizations and would like to be a part of their growth story. You definitely can be by investing in mutual funds which invest in such organizations and have given fantastic returns. Just to give a glimpse, look at the figure below (for YTD returns) :

Equity International

Some of the mutual funds that invest in such companies are :

  1. Franklin India Feeder Franklin US Opportunities Fund
  2. DSP US Flexible Equity Fund (FOF)
  3. Motilal Oswal Nasdaq 100 (FOF)
  4. ICICI Prudential US Bluechip Equity Fund

Equity International

China Economy

  1. In 1978, when China started their economic reforms , it had a GDP of 214 billion USD . It now has a GDP of 9.2 trillion USD .

  2. China has become the world’s manufacturing hub

  3. Second largest company is China Petroleum & Chemical Corp . Fourth largest company is PetroChina . Tencent , Alibaba and Baidu are the other large companies that have come up in recent times featuring in top 25 by revenue .

Top funds investing in China & Asia economy are :

  1. Edelweiss Greater China Equity Offshore Fund
  2. Franklin Asia Equity Fund
  3. HSBC Global Emerging Market Fund
  4. Kotak Global Emerging Market Fund

Equity International - China & Asia

Conclusion

Equity international funds are good way to mitigate the geographical risk in a portfolio. Moreover, if any of you who have invested in some of the above funds can definitely vouch for the huge gain that you have received in the last 1 year despite the coronavirus.

Reference

  1. US Economy
  2. Top 10 companies
Disclaimer : Past returns are not indicative of future returns and this article is NOT suggesting in anyway to buy any of the mutual funds listed in the article.