Simply Save | Why it is important to make international investments across emerging and developed markets?

Investing in international funds has got much wider acceptance among mutual fund (MF) investors. AMFI data shows the number of mutual fund folios in fund of funds (FoFs) investing in international stock markets going up by more than three-times over the last one year. This is for the folios opened by retail investors. When it comes to high networth investors (HNIs), the folios have gone up by more than five-times. Investor inflows have also gone up in such funds.

Mutual funds have been launching several new funds -- new fund offers -- that not only give domestic investors exposure to companies listed on the international stock exchanges, but in some cases the funds are offering international exposure with a certain investment theme.

For example, Mahindra Manulife MF recently launched an international fund that takes exposure to international real estate investment trusts (REITs). PGIM MF also plans to launch a fund with global REIT exposure.

Fund houses are launching international funds both in the FoF mode and even in the form of exchange traded funds.

Some of the recently-launched funds have even changed track and are giving investors exposure to international funds that are actively-managed, and not a passively-managed fund. Take the case of the recently-launched IDFC US Equity FoF.

In today’s episode of Simply Save Podcast, we are joined by Trideep Bhattacharya, Co-CIO Equities Edelweiss Mutual Fund, who has spent several years as an analyst, as well as a portfolio manager tracking Asian Emerging Markets (EMs), as well as Developed Markets (DMs) like Europe. He talks on why investors should balance their international investments across both EMs and DMs and what are the latest developments in international markets that investors should keep in mind when making such investments.