Looking to go global with your investments? Check out the mutual fund options available

If you’re looking to diversify your portfolio with overseas investments, now might be the time. According to Value Research, 35 of 68 global mutual funds available in India are currently open for fresh investments, either through Systematic Investment Plans (SIPs) or one-time lump-sum contributions.

These funds provide exposure to various regions, including the United States, China, and other global markets.

Here’s a look at some of the available funds:

(Source: Value Research; Note: All funds except the first two are available for both SIP and lump-sum investments as of November 9, 2024.)

In 2022, many global funds had to halt fresh investments due to regulatory limits that cap Indian mutual funds’ overseas investments at $7 billion. Some funds reached these limits and were forced to close new SIP and lump-sum subscriptions.

However, when investments in foreign assets decline, such as during market pullbacks, these funds can temporarily reopen for fresh investments.

Opportunities and risks in global investing

Investing in global mutual funds offers access to opportunities in leading economies, such as the United States and China.

Notably, China recently introduced a 7.5 trillion yuan stimulus package to boost its economy, which could benefit investors in funds with Chinese exposure.

Meanwhile, in the US, political shifts, including the potential return of Donald Trump, could impact markets.

By investing in these global funds, Indian investors can diversify their portfolios and capture growth in global markets, though they should remain mindful of regulatory constraints that may limit mutual fund investment opportunities over time.