Four international funds that are still open for investment The Russia-Ukraine crisis has hammered prices of several global stocks, but most international funds are not accepting fresh investor flows due to overseas investing limits
March 01, 2022 / 09:13 AM IST
The Russia-Ukraine crisis has sent the global stock markets into a meltdown. However, investors looking to increase their allocation to global markets amidst the ongoing correction don't have many options as most international mutual funds stopped accepting fresh money after RBI's overseas limits were set to be breached. However, there are a few funds where investors can still deploy money for global diversification.
The overseas limit for mutual funds investing in international exchange traded funds (ETFs) is still open. Kotak NASDAQ 100 Fund of Fund invests in iShares NASDAQ 100 UCITS ETF. The NASDAQ 100 is an index of 100 largest US companies listed on the Nasdaq stock exchange.
DSP Global Innovation Fund of Fund was launched with idea of investing in a combination of index funds and ETFs that track innovative companies in different parts of the world. However, following SEBI's directions on overseas limits, the fund for now will invest in iShares NASDAQ 100 UCITS ETF and iShares Semiconductor ETF. The iShares Semiconductor ETF tracks an index of US-listed in the semiconductor sector.
Sachin Bansal-backed Navi Mutual Fund's US Total Stock Market Fund of Fund will be investing in an ETF run by Vanguard, which is the pioneer of passive investing in the world. The Vanguard Total Stock Market Index Fund ETF (VTI ETF) tracks the CRSP US Total Market Index, which is a broad US index that covers nearly all of the US equity market, across multiple sectors and comprises of more than 4,000 stocks. VTI ETF is the third largest ETF in the world with $1.3 trillion worth of assets.
Aditya Birla Sun Life NASDAQ 100 Fund of Fund also invests in iShares NASDAQ 100 UCITS ETF. The NASDAQ 100 is an index of 100 largest US companies listed on the Nasdaq stock exchange.