Should you invest in international equity mutual fund?


Can you suggest mutual funds with investment in an international equity fund secondly shall one invest in them.

—Name withheld on request

To diversify your overall mutual fund’s portfolio, one can have up to 10% allocation in international equity funds. It will not only give you geographical diversification but also offer opportunities to invest in sectors that are not available in India. There are multiple international funds available. However, you may choose Franklin India Feeder–US Opportunities Fund, ICICI Pru US Bluechip Equity Fund or Motilal Oswal Nasdaq 100 FOF.

I want to invest 15 Lakh (one time) for the marriage of my daughter who is 12 years old. How should I invest, I have no idea about investment planning? 

—Mahesh

Considering your goal, we are assuming your risk profile will be Moderate – Long Term for the next 10 -12 years at least. You may create a comprehensive Mutual Fund portfolio consisting of Equity & Hybrid funds with a 60:40 ratio, respectively. Parag Parikh Flexi Cap Fund, UTI Flexi Cap Fund, Mirae Asset Emerging Bluechip Fund, Canara Robeco Emerging Equities Fund, Nippon India Growth Fund & Kotak Small Cap Fund in Equity category while Aditya Birla Sun Life Balanced Advantage Fund, ICICI Prudential Asset Allocator FoF & DSP Dynamic Asset Allocation Fund in Hybrid category can be considered. It is a noteworthy point here that the Equity investment should be done by the way of opting for 12 months systematic transfer plan (STP) route while Hybrid investment can be done on Lumpsum. This way your portfolio will be diversified across asset class, category, scheme asset management company. It is also advisable to keep reviewing your portfolio at least once a year.

Sanjiv Bajaj, joint chairman managing director, Bajaj Capital. Queries views at [email protected]

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