Site icon Kuvera

Top International FoFs in India

While looking for top passive funds India, have you come across FoFs? So, what are FoFs or Fund of Funds?

 

 

As its name hints, FoFs or Fund of Funds are passive funds India types that invest in other mutual funds. They are a type of passive funds India since they mirror other mutual funds in terms of composition and returns. So, you can invest in a combination of different passive funds India through a single FoF SIP (Systematic Investment Plan). However, there are international FoFs too you can invest in and they can be a better option for those wanting to invest in international mutual funds.

 

Let us learn more about international FoFs, top international FoFs in India and their advantage as a passive funds India type in detail.

 

Investing in International FoFs 

 

Investing in the international FOFs in India could allow investors to gain exposure to global markets without direct foreign investment complexities. These funds pool money from various investors and invest in a basket of international funds, providing diversification across geographies and asset classes. 

Here are some of the key benefits of international FoFs:

 

 

Here are some of the important considerations for investing in international FoFs:

 

 

Top FoFs in India as per 1-year returns 

 

Here are the top ten international FoFs passive funds India based on one year return period: 

 

Fund Names1 Year Returns
Edelweiss US Technology Equity FoF Growth Direct Plan52.90%
Bandhan US Equity FoF Growth Direct Plan48.40%
DSP Global Innovation FoF Growth Direct Plan45.60%
Kotak Nasdaq 100 FoF Growth Direct Plan45.10%
DSP World Gold FoF Growth Direct Plan43.90%
Axis Nasdaq 100 FoF Growth Direct Plan40.00%
Navi Nasdaq 100 FoF Growth Direct Plan39.70%
Kotak Global Innovation FoF Growth Direct Plan37.70%
Axis Global Innovation FoF Growth Direct Plan37.70%
Kotak International Reit FoF Growth Direct Plan26.20%

As on 31/10/2024

 

As you can observe from the table, there are many international FoFs investing in Nasdaq funds. Other than that, there are funds investing in commodities, the US equity mutual fund market, thematic funds based on technology, growth, innovation and those investing in international REIT (Real Estate Investment Trust) funds. The one year returns for these passive funds India range from more than 50% to less than 30%.

 

Top FoFs in India as per 3-year returns

 

Let us now look at top FoF passive funds India based on three year returns. Here is the table for the same.

 

Fund Name3 Year Returns (CAGR)
Mirae Asset NYSE FANG ETF FoF Growth Direct Plan19.60%
Kotak Nasdaq 100 FoF Growth Direct Plan13.78%
Invesco India Invesco Global Equity Income FoF Growth Direct Plan13.40%
Bandhan US Equity FoF Growth Direct Plan13.12%
Motilal Oswal Nasdaq 100 FoF Growth Direct Plan12.80%
SBI International Access US Equity FoF Growth Direct Plan12.00%
HDFC Developed World Indexes FoF Growth Direct Plan10.40%
DSP US Flexible Equity FoF Growth Direct Plan10.40%
DSP World Gold FoF Growth Direct Plan9.83%
Axis Global Equity Alpha FoF Growth Direct Plan9.60%

As on 31/10/2024

From the above list of top funds from the three years return category of international FoF passive funds India, you can see that most of these funds are investing in either global equity funds or global funds investing in international equity based indices like Nasdaq, and NYSE FANG. There are funds investing in global funds mirroring multiple indices. Further, there are international FoFs investing in global commodity funds like gold.

 

 

Limitations of Investing in Global FOFs in India

 

While the international Fund of Funds can offer a convenient way to access international markets through passive funds India, they come with several limitations. These are as follows:

 

Higher Costs

 

 

Currency Fluctuations

 

 

Complex Investment Structure

 

 

Performance Tracking

 

 

Regulatory Hurdles

 

 

Limited Control

 

 

It is therefore crucial to conduct thorough research and consider these limitations before investing in an international Fund of Funds.

 

 

Wrapping Up

 

In conclusion, while international FoFs could offer a convenient way to diversify your portfolio and gain exposure to international markets, they come with inherent complexities and costs. Investors should carefully weigh the benefits against these limitations. It’s crucial to conduct thorough research, understand the underlying funds, and consider factors like fees, currency fluctuations, and regulatory risks. Learning about them extensively before investing can help navigate the complexities and make informed investment decisions aligned with your risk appetite and long-term financial goals.

 

 

Interested in how we think about the markets?

Read more: Zen And The Art Of Investing

Watch here: Is UPI Killing the Toffee Business?

Start investing through a platform that brings goal planning and investing to your fingertips. Visit kuvera.in to discover Direct Plans of Mutual Funds and Fixed Deposits and start investing today.

 

 

AREVUK Advisory Services Pvt Ltd | SEBI Registration No. INA200005166
DISCLAIMER: Mutual Fund investments are subject to market risks. Read all scheme related documents carefully. Registration granted by SEBI, membership of BASL (in case of IAs) and certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors. Investments in securities market are subject to market risks. Read all the related documents carefully before investing. The securities quoted are for illustration only and are not recommendatory.

Exit mobile version