Mutual Fund Update: International outperformers

Being a mutual fund investor, one always seeks new options to reap more returns and safeguard the investment. Moreover, in the current volatile market diversification of the portfolio is also an important aspect. For this many investors have been investing in the international funds to gain returns and balance their portfolio.

International funds allows investors to invest in to the equity or equity-related securities of foreign market. The category has performed well in the last one year, but since last 2 months all the international markets have started bleeding which also affected the performance of international funds.

These funds are mostly fund of funds or pure ETF’s. The category has given ~13 per cent returns in the past one year. In the last one month, the category has turned red and given a negative return of the 2.1 per cent. The volatility has created a need of thorough analysis of these funds before investing.

For this we have analysed the category and all the schemes from the category. According to our data analysis, we have filtered the funds which have outperformed the category in the last one year.

Taxation of these funds is similar to debt funds. These funds also attract LTCG (long term capital gain) tax of 20.6 per cent after a period of three years with the indexation benefit.