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- 11 Aug, 2017

Can an individual invest in international companies through mutual fund?

2 Answers 223 Answer this Question

Taruna Tripathi

31 August, 2018

Why not? Investing in international or foreign funds gives you a privilege to invest in international companies. However, they are considered more riskier than the domestic funds but if luck favored in your condition, you might end up getting high returns. Also, they are the perfect option to diversify the portfolio as it can compensate the loss generated at the domestic market to some extent.

All the best!

Koshik Dave

21 December, 2018

A big YES my friend. For this, you can consider investing in the International or Overseas Fund. These funds invest in the companies which are operational in foreign countries. These funds adds an element of geographical diversification in the portfolio.

Who Should Invest?

International funds are suitable for the investors who are willing to diversify their asset for better risk-adjusted returns. Market of different countries might experience different trends at the same time which helps in diluting the negative returns occurred in a particular market. Moreover, the fund also gives you a broad experience of international market which can help you in your investment journey. If you are a passive investor, kindly stay away from such funds.

Advantages:

By diversifying your portfolio among different economies can help you in fetching better gains in the future. Also, as per the weak position of Indian Rupee in the foreign market, international funds might prove beneficial for you.

Disadvantages:

You will be required to monitor the foreign economy constantly as any factor can change the dynamics of market trend.

Happy Investment!

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