International / Global Commodities Mutual Funds

POSTED BY kau9mar ON September 17, 2012 6:14 pm COMMENTS (3)

Hello,

Waht is your advise on investing in international / global commodities mutual funds? I am regular investor in equity (large, small and mid cap) as well as debt funds. I had the following funds in my watchlist for last several months :

1. ING Global Real Estate

2. JP Morgan Equity Offshore

Funds in this category have given greater thatn 15% returns.

The reason why i ask this query is, i don’t see many discussions around investing in this particular type of mutual funds. Is this realtively a new area? What is your advise if i were to start a SIP of let’s say 5K/ month with an investment horizon of 3-5 years?

 Your inputs wil be gratly appreciated.

Thanks

Kaushik

3 replies on this article “International / Global Commodities Mutual Funds”

  1. kau9mar@gmail.com says:

    Hi Ramesh and Ashal,

    Thank you for your inputs. I found the link to the earlier discussion on internationa MF investment share by Ramesh very useful and interesting.

    While i can say i have a managed a fair bit of diversification in my current (domestic) investment portfolio, I am yet to weigh in the pros and cons on investing in international mutual funds. I was looking for more like an yes – go ahead and invest or no – refrain from it kind of suggestion. Perhaps, I think i will take a step back and study more carefully before investing in these funds.

    Regards,
    Kaushik

  2. Dear Kaushik, there is nothing wrong in diversifying your own portfolio. But do you have enough diversification within Indian assets itself? Also, are you ready to carry the risk of currency fluctuation, these global funds carry? Due to Currency fluctuations alone, the returns from these funds can be very volatile.

    Please think over it before you leap.

    Thanks

    Ashal

  3. Ramesh says:

    Do go through this.

    http://localhost/jagoforum2/investing-in-global-mutual-funds/1073/

    India is a part of the emerging markets and behaves mostly like that.

    You will mostly need to make a strategy in this regard about what will be your exposure to other emerging markets, developed countries’ markets and sectoral funds like the ING fund. Evaluate the history of such funds (on how they specifically have behaved over last many years-to-decades and whether that makes sense going forward). Once you are aware of the pros and cons of these, you can go ahead.

    Mostly, you should opt for different funds, which behave in a non-correlated way. Better to diversify internationally than to remain solely within a narrow nationalistic ‘pride’.

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