SUNIL MAHESHKUMAR VYAS
August 21, 2013 4:08 pm
As day by day we can see the valuation of INR is getting down with compare to USD.
Is it right time to migrate from domastic mutual fund to international mutual fund ?
I am not sure who cropped the idea of investing in overseas investment at this point of time. Consider the following when you invest in Overseas funds :
1. You give INR to found house
2. They convert INR to USD at the current rate.
When you sell,fund house converts USD into INR. If you do it at a time in future where INR is less than the current levels, then your entire returns may be wiped off or you may be sitting on massive losses.
The current returns shown by the fund houses are heavily influenced by exchange rate. They would be comparing it with past 1-2 years performance when $ to INR was less than 55. Now they are valuing the investments when $ is at INR 65. That in itself around 20% return. Think about if you enter now and the tide turns …
Dear Sunil, the time is already over for international funds. The reason is simple, when the tide ‘ll turn now & rupee ‘ll start appreciating, the losses in international funds ‘ll be also very impressive just like the current returns. the performance of underlying index or stocks has nothing to do with internation funds significantly & cross currency exchange rate ‘ll play a major role in your final return.
I would say YES
– ICICI Pru US Bluechip Equity – Growth
FT India Feeder Franklin US Opp – Growth
In just one year, they have delivered nearly 35% returns. There are lots of risks, but returns are pretty impressive
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