Choose An International Mutual Fund For Gain Or Security

International mutual fund investments can give you the best of many different worlds. You can achieve the stability and security which is inherent in this type of investment, while at the same time searching for the right market to give you the potential for spectacular growth. If you want to invest in industries which are specific to one part of the world, you can certainly do that. You can also choose to avoid any country which has political policies you are in strong disagreement with, as well as areas where environmental considerations are being ignored.

The reasons for investing in mutual funds apply to international mutual funds just as much as to domestic ones, with one possible exception. Although the industry remains government regulated, there is obviously a limit to the jurisdiction the US Government can have over investments in a foreign territory. You will have a degree of protection, but obviously not the same as you would have by sticking to investments within the USA. Historically, though, overseas funds have still proven to be a safe investment.

Some of the same disadvantages apply also, in that you obviously cannot choose your own stocks, any more than you can with a domestic fund. It is less likely, though, that you will regard this as a problem. There are thousands of people who study Wall Street avidly, and who will have their own opinions as to which stocks a fund should be investing in, but it is far less likely that they will have an extensive knowledge of individual stocks based overseas. You will still need to develop a working knowledge of the market you will be investing in, otherwise too much is left to chance.

There are basically two main strategies for overseas investing, depending on your objectives. If you are aggressively seeking the greatest possible gain, you can select the market which you believe is set to grow the most in the shortest time, and invest all of your money into that market. If, on the other hand, you are looking for a more cautious approach, you can spread your investment across many markets with one or more global mutual funds.

Choosing which international mutual fund you want to invest in will first involve quantifying your objectives as clearly as possible. Are you seeking to diversify because you believe another market has a potential for greater gain than the US market, or are you attempting to hedge your bets into a safer market? These considerations will help you to choose a fund, because they will determine the market sectors you should be investing in. You need emerging sectors for growth and established sectors for security, just as much with a domestic fund or an international mutual fund.

 

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No Load Mutual Funds News:

 

SIPs lose shine, 1.6 m accounts closed in 2011 - Deccan Herald

India Today
SIPs lose shine, 1.6 m accounts closed in 2011
Deccan Herald
Though financial experts advise retail investors to stick to systematic investment plans (SIPs) in a fluctuating market to maximise gains, the domestic mutual fund industry with assets of over Rs 6.81 trillion is losing its grip over its most trusted .
Mass exit by small investorsIndia Today

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At least 1.66 mn SIP accounts closed in 2011 - Livemint

At least 1.66 mn SIP accounts closed in 2011
Livemint
India's `6.81 trillion mutual fund industry is losing its most trusted source of equity inflowsEURsystematic investment plans (SIPs). The latest data from registrar firms Computer Age Management Services Pvt. Ltd (CAMS) and Karvy Computershare Pvt. Ltd .

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Five local fund houses to manage Kuwait's $1-billion India portfolio
Kuwait Investment Authority (KIA), the Gulf state's sovereign wealth fund, has selected five domestic mutual fund houses to manage its India equity portfolio...


Clearing the tax confusion for SIP investments - Moneycontrol.com

Moneycontrol.com
Clearing the tax confusion for SIP investments
Moneycontrol.com
One of the best ways to invest in equity oriented mutual funds is through the Systematic Investment Plan (SIP) route whereby a regular sum of money is invested each month on a fixed date. This gives various benefits including that of regular investment .

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Lost faith in your SIP? Don't give up - Hindustan Times

Lost faith in your SIP? Don't give up
Hindustan Times
Data from Computer Age Management Services (CAMS), a registrar and transfer agent to a number of mutual funds, shows that spooked investors are voting with their money and the number of ceased SIPs has almost doubled over the calender year 2011.

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Poor returns hit MF investments through SIPs - Business Standard

Poor returns hit MF investments through SIPs
Business Standard
Investment in equity mutual funds through systematic investment plans (SIPs), once a steady route of sticky money inflows to the fund industry, is now being hit. Volatile market conditions and poor visibility of expected returns are making investors .

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Entry load or not, most foreign funds got it wrong
EURWhen a fund house like Fidelity exits, it does not augur well for the Indian mutual fund industry,EUR says the chief executive officer of a leading fund house. But, he is quick to add, exits of large and well-known foreign fund houses from India are common...


Poor returns hit MF investments through SIPs
Investment in equity mutual funds through systematic investment plans (SIPs), once a steady route of sticky money inflows to the fund industry, is now being hit...


 

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