Mumbai9 hours ago
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- 49% of this fund is invested in developed markets
- The fund also invests in emerging markets
Those who are small or retail investors of the country, they may find it difficult to invest directly in foreign markets. For such investors, the mutual fund route should be adopted to invest in multiple markets through a single fund. You will get an opportunity to invest in such sectors which are not yet listed in India.
Investing in major markets through Global Advantage Fund
Through Global Advantage Fund of country’s leading mutual fund company ICICI Prudential, you can invest in major markets like US, Japan, Hong Kong and other markets. This is Fund of Funds. That is, it invests in those funds which are already investing there. For example, if you look at the portfolio of ICICI Prudential’s Global Advantage Fund, American Bluechip Equity Fund has 26% of its total investments. Nippon India ETF is invested 25.4% in Hong Kong, 21.5% in Franklin Asian Equity Fund, 20.9% in Nippon Japan Equity Fund.
Gets returns like compound interest
The returns from this type of investment are good. For example, this Global Advantage Fund has given 22.83% Compound Interest (CAGR) returns. This means that if an investor would have invested 10 thousand rupees in this fund in October 2019, then it has become Rs 14,037 in May 2021. The fund was launched in October 2019.
51% invested in emerging markets
Looking at the portfolio of this Global Advantage Fund, 51% of it is invested in emerging markets. 49% are invested in developed markets. That is, you get an opportunity to invest in both emerging and developed markets. It invests in schemes which are in the structure of Fund of Funds. This is because the fund manager has investment opportunities across all geographies and can change the same depending on the change in outlook across markets.
This fund invests in positive markets
The fund invests in those markets whenever the outlook for developed markets is positive. The developed markets are America, Japan etc. On the other hand, it invests in emerging markets when they do well. There are markets in Asia as well as Japan etc. In this way, it is a one stop solution for retail investors to invest in markets across the globe.
Growing interest in foreign markets
In fact, the interest of Indian investors in the global markets is increasing. This is the reason that mutual funds of the country are launching their schemes in these markets. Global markets also have many challenges. Because of which if you use this fund route, then your investment is less risky and at the same time you get profit. Over the last few years, the attractiveness of foreign markets has increased because the companies listed there are not in India.
For example, companies in sectors like e-commerce, digital platforms, artificial intelligence, semiconductors are listed in foreign markets. Also these markets have given good returns in the last few years.