- Date : 17/02/2023
- Read: 3 mins
International fund category returned 12.59% on average in the last three months.
International funds look like an attractive mutual fund category, and many mutual fund advisors and managers recommend these to investors for diversification. Most experts think this is the correct time to invest in them as the developed economies have already corrected. Value Research suggests the International category returned 12.59% on average in the last three months. The category has been a top performer regarding the year-to-date and one-month horizon. The category returned 8.78% on a year-to-year basis and 4.24% on a one-month horizon.
MoneyWorks Financial Advisors, Founder Nisreen Mamaji, says that the international market has outperformed the Indian market in the past three months. Earlier, the international markets witnessed a deep correction, and now it is returning to mean reversion. However, it could be a mistake to get happy about international funds by looking at their average returns. The international category is diverse and vast and caters to many international indices, commodities, sector indices, etc.
For instance, the best performers have invested in Pan European, Greater China, NYSE, and Hang Seng. These markets have been the best performers; others like Brazil, Nasdaq, and the US failed to perform well. The best-performing schemes in international markets have returned in double digits, and the top four have offered over 30% returns.
Founder of Financial Radiance, a Certified Financial Planner (CFP), Rajesh Minocha, believes that performance depends on where you invest the money and the geography. It is because all the performances are different in different geographies. It makes sense to allocate international funds as there is a negative correlation between international funds and the Indian market.
Mirae Asset Hang Seng Tech ETF has been the best performer, with a 38.55% return. Mirae Asset Hang Seng TECH ETF FoF has been the second-best performer, with a 36.24% return. ICICI Prudential US Bluechip Equity Fund, Mirae Asset S&P 500 Top 50 ETF FoF, and Kotak Global Emerging Market failed to perform well.
NYSE, Dow Jones, DAX, Hang Seng, and NASDAQ performed well in the last three months ranging between 4-30%. It was majorly because of the sharp corrections in the US stocks.
Optima Money Manager, CFP Pankaj Mathpal, said that one could invest in international funds with a 10-15% exposure and save other portions for when the market is performing well. You must be wary of a country like the USA and choose a fund that allocates across countries.