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As the name states, investment tools that allow you to invest in international markets are referred to as Global Mutual Funds. Mutual Funds or Exchange Traded funds that primarily invest in companies across the globe are called Global Mutual Funds.
It is important to note that there is a huge difference between Global Mutual Funds and International Funds. Investors of International Funds can only invest in the international markets and not in the funds of his own country. On the other hand, investors of Global Mutual Funds can invest in international markets and the funds of his own country, both.
5 Best Global Mutual Funds to Invest
Given below is a list of top 5 global mutual funds in India-
| Fund Name | 1Y Return | 3Y Returns | 5Y Returns |
| SBI Magnum Global Fund | 11.39% | 11.50% | 7.92% |
| Franklin Asian Equity Fund | 23.48% | 13.71% | 10.11% |
| ICICI Prudential Global Stable Equity Fund | 17.10% | 9.81% | 9.67% |
| Aditya Birla Sun Life International Equity Fund- plan A | 19.66% | 14.71% | 9% |
| Kotak Global Emerging Fund | 18.74% | 10.16% | 5.72% |
{Data as on January 27, 2020; Source: Value Research}
1. SBI Magnum Global Fund
| 1-year | 3-year | 5-year | |
| Return | -9.19% | 4.99% | 9.88% |
| Benchmark | -11.98% | 5.16% | 11.19% |
(Data as on September 9, 2019; Source: Value Research)
Net Asset Value: Rs. 3,354 Crore (as on July 31, 2019)
Launch Date: September 30, 1994
Fund Manager: Anup Upadhyay (at the helm since May 2018)
2. Franklin Asian Equity Fund
| 1-year | 3-year | 5-year | |
| Return | -1.79% | 7.74% | 7.06% |
| Benchmark | -6.12% | 8.70% | 6.25% |
(Data as on September 9, 2019; Source: Value Research)
Net Asset Value: Rs. 122 Crore (as on July 31, 2019)
Launch Date: January 16, 2008
Fund Manager: Roshi Jain (at the helm since January 2013), Srikesh Nair (at the helm since May 2016)
3. ICICI Prudential Global Stable Equity Fund
| 1-year | 3-year | 5-year | |
| Return | 1.67% | 6.66% | 8.34% |
| Benchmark | 1.51% | 12.23% | 9.85% |
(Data as on September 9, 2019; Source: Value Research)
Net Asset Value: Rs. 84 Crore (as on July 31, 2019)
Launch Date: September 13, 2013
Fund Manager: Rohan Maru (at the helm since September 2013), Priyanka Khandelwal (at the helm since June 2017)
4. Aditya Birla Sun Life International Equity Fund- plan A
| 1-year | 3-year | 5-year | |
| Return | 0.79% | 11.72% | 6.64% |
| Benchmark | -0.48% | 10.02% | 7.60% |
(Data as on September 3, 2019; Source: Value Research)
Net Asset Value: Rs. 68 Crore (as on July 31, 2019)
Launch Date: October 31, 2007
Fund Manager: Vineet Maloo (at the helm since September 2007)
5. Kotak Global Emerging Fund
| 1-year | 3-year | 5-year | |
| Return | -7.35% | 4.94% | 1.26% |
| Benchmark | -4.06% | 6.96% | 1.95% |
(Data as on July 31, 2019; Source: Value Research)
Net Asset Value: Rs. 32 Crore (as on July 31, 2019)
Launch Date: September 26, 2007
Fund Manager: Arjun Khanna (at the helm since May 2019)
Types of Global Mutual Funds
Global Mutual Funds are dependent on multiple factors like the mode of investment, region of investment, and theme.
Depending on the mode of Investment, Global Mutual Funds are of 3 types-
- Funds which are directly handled by the fund manager
- Funds that gather money from local investors and later transfer it to the parent fund, which is managed offshore (also known as Feeder Fund)
- Funds that have a mix of both domestic and global funds
Depending on the region of investment, Global Mutual Funds are of 2 types-
- Funds that can be invested only in a specific region or country
- Funds that can be invested in any country from across the globe, depending upon the fund manager’s understanding
Depending on the theme, Global Mutual Funds can be invested in sectors like commodities, energy, gold, agriculture, etc.
Why Invest in Global Mutual Funds?
Global Mutual Funds are considered ideal for investors who are looking to diversify their portfolio. This ultimately leads to risk management and hence, higher profits. Investments made in these funds are usually for a longer duration of time; hence making it suitable to investors willing to stay invested for a longer term.
Global Mutual Funds allow you to invest in mutual funds in another country. This keeps your funds safe from the fluctuations in the market of your own country. Additionally, investing in markets from across the globe gives access to chances of earning rewards to the investors.
Think Before You Invest
Market risks cannot be ignored completely, since your funds are invested in companies from another country, the market fluctuations from that country will affect the value of your investments.
Moreover, since you will be investing in the Indian currency, in the markets that use a foreign currency, the value of the rupee to the foreign currency will also affect the value of your investments.
