Be Athmanirbar, by investing in Global Funds

Posted By: Admin

The last five years have seen tumultuous changes in the Indian Economic landscape, we have had series of economic events that have altered the face of the Indian economy but it has also come at a big cost of economic growth. All the events from demonetization, to GST implementation and the BIG bang changes in getting the bad debts weeded out of the system have come at high cost of a stifling economic era of low / no growth. Save for some services sectors which were entirely dependent on overseas markets, none of the industries can claim to be immune to the slow economic progress that India has made in the past five years. While Covid 19 is not of our making, nevertheless the ensuing lock downs and reluctance to reopen the economy fully, fearful of the increasing instances of Covid 19 spread, has meant that India would have a slow economic recovery out of Covid 19. As an Investor, what are the options when you are faced with a slow Indian economy. One option that the retail investors have so far ignored is that of the investment option in the Global funds.

What are global funds ?

These are essentially Fund of funds( FOFs) in India which invest in Global stocks either directly or through another themed fund. While Indian Economy may have challenges, the global economies esp the US economy over the past decade has enjoyed a good growth rate, also with a portfolio of world’s leading companies like Google, Apple, Amazon.. it is unlikely that they are going to be affected by the ups or downs of one market, as they are likely to be present across all the economies of the world. Also being a US dollar denominated fund, these funds allow investors to also benefit from rupee depreciation vis a vis the US dollar on a long term basis.

In conclusion : Being Athmanirbar, is to be self reliant, and being self reliant in investing is by not depending on one economy alone for your returns but to diversify among the global portfolio for at least a small portion of your portfolio so that you are better placed to enjoy the fruits of a global recovery even if Indian Economy takes a little while longer to recover. Consider a 10-15 % allocation for the Global Funds and am sure your portfolio will be well diversified and you shall experience the benefit of the same.

Enclosed is the indicative list ( not exhaustive ) of Global funds available in India.

You can also write to us at info@finsherpa.com Or visit www.finsherpa.com