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Be Indian, go global with global funds!

Global funds invest in international companies and/or mutual funds investing in international companies. Some of these funds can also choose to focus on investing in international companies operating in a particular sector. Few funds are hybrid i.e. they invest a part of their money in Indian companies and remaining portion of their money n international companies.

Want to own a pie of Microsoft, Sony, Alcatel and various other top notch international companies? Looking to diversify your portfolio to include companies based in other parts of the world? Then you must seriously give a thought to global/ international funds. If you are not aware of them, then read on to find out more about this new, exciting investment option for you.

What are global/international funds?

Global funds are mutual funds that invest their money in companies located in other countries. They can also invest their money in a particular region, like Asia. They may also choose to invest their money in companies operating in a particular sector like infrastructure.

What is their investment scope?

These funds invest in international companies and/or mutual funds investing in international companies. Some of these funds can also choose to focus on investing in international companies operating in a particular sector. Few funds are hybrid i.e. they invest a part of their money in Indian companies and remaining portion of their money n international companies.

What are their advantages and disadvantages?

International funds have their own pros and cons. Here are some of them:

Pros:

Cons:

Is it for me?

If you are willing to take risks in order to earn higher returns then this investment is right for you. Are you patient enough to wait and watch your investment grow? Can you withstand the high volatility across the stock markets in different countries? Are you ready to pay tax on any profit earned from this investment? If you have answered yes to these questions, then go ahead and invest in these funds. however do watch the charges and take care to ensure you choose a fund with a good track record.

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