With a close analysis of the recent market behavior, there is no doubt that international mutual funds have emerged victorious as the safest market bet of the season. According to records, 7 of the best performing mutual funds are international, thus, suggesting a profitable venture for investors in the country. Many financial analysts also suggest international mutual funds to their clients for the critical purpose of diversification. Here are a few reasons why an international mutual fund can be your new best friend:
Lack of abundant commodities:
With an industry dominated by hydrocarbons for the last couple of decades, like petroleum – the liquid form of carbon, natural gas, its gaseous counterpart, and the all-powerful impure carbon, coal, which has been in full demand for several years for the purpose of power generation, there is no doubt that their days of high demand have finally come to an end. Although these carbon forms played a crucial role in the developmental stages of industries all across the world, sustainable sources of energy have taken precedence over these forms of energy. While hydrocarbons can be credited with dissolving the boundaries of population growth, scientific progress, and finance, progress with the industrial revolution led to the discovery of alternate sources of energy, thereby, stabilizing the prices of these commodities.
Hike in food prices :
Although the Government of our country is seeking to calm down the electorate by claiming that a rise in the prices of food is only a temporary phenomenon, industry observers believe otherwise. This is because with the rapid development undertaken in several parts of the country; land is increasingly used for industrial and residential purposes, thereby, reducing the land available for agricultural reasons. Thus, with an increase in employment opportunities in commercial industries and factories, more men are employed for these purposes, thereby reducing the manpower used towards the agricultural industry. Consecutively, farmers adopt the practice of double-cropping in order to combat the dual problems of less manpower and increasing demand by harvesting crops in quick rounds of succession. While this phenomenon has already been observed in the leading economic power of the world – China, which also holds record the record of being the world’s largest producer of rice and wheat, it is not long before India adopts this trend too. While politicians play a major part in deciding food prices in the country, one cannot deny that troubling facts like this also contribute towards pushing prices in the country. This can be depicted with a major example from Thailand, where their Prime Minister promised to pay the farmers a hiked price of 15,000 Baht against the current price of 9,000 Baht, if he won the elections. If this move is implemented, then it would lead to a price rise for the major commodity of rice globally, since Thailand is the largest exporter of rice in the world. Thus, as a prudent investor, now is your time to make an informed choice by exploiting the current market price, by making a swift investment in consumable commodities. While the opportunities in India are fairly limited, you can make use of international mutual funds by investing in food products with a global demand.
Apart from all these advantages, it is very important for you to understand the market in which the funds are operating. With market fluctuations being anticipated in near future, it is important for you to be alert and make your decisions wisely. Opting for debts like personal loan, home loan etc, to finance your requirements may not be very like able avenues where you want to push yourself into if you lose out your investments due to wrong decisions.