HOW TO INVEST OVERSEAS NOW
Mutual Fund Insight|May 2022
With AMCs restricting investments in international funds, here are your options now
- Omkar Vasudev Bhat & Ravi Banagere
HOW TO INVEST OVERSEAS NOW

Up until recently, Indians largely restricted themselves to investing in domestic markets and only the enthusiasts saw the scope and opportunity to invest overseas. With the global markets, led by the US, surging during the post-pandemic recovery, investors were attracted to them, both for returns and diversification benefits. During this period, certain domestic mutual funds, led by Parag Parikh Flexi Cap Fund, that maintained a steady international exposure provided superior returns. This also helped arouse interest in the Indian investor about overseas investing. Finally, with the advent of fintech firms that facilitate overseas investing, it became easier for investors to access the foreign markets.

For many, the most convenient route for investing overseas is international mutual funds. These funds, domiciled in India, provide a convenient gateway to foreign stocks, along with the other advantages of mutual funds, viz., professional expertise, instant diversification, and ease of operation. These funds help investors to gain exposure not just to US equities but also to other geographies, such as Japan, Europe, China, etc. However, in consultation with the RBI, SEBI has defined some limits for these funds, both at the fund and industry level, which first came into effect in 2007. These limits have largely been sufficient for more than a decade and a half, with minor increments made by the regulators a couple of times during the period. However, due to the rising popularity of international investing, funds investing directly in foreign stocks have hit their upper limits at the industry level and now it's not possible for investors to invest in them since the start of this year. The industry body AMFI is trying to get the limits enhanced but the regulators seem to be dragging their feet.

Only time will tell if and when the limits are increased. How to invest overseas till then? Here are your options.

この蚘事は Mutual Fund Insight の May 2022 版に掲茉されおいたす。

7 日間の Magzter GOLD 無料トラむアルを開始しお、䜕千もの厳遞されたプレミアム ストヌリヌ、9,000 以䞊の雑誌や新聞にアクセスしおください。

この蚘事は Mutual Fund Insight の May 2022 版に掲茉されおいたす。

7 日間の Magzter GOLD 無料トラむアルを開始しお、䜕千もの厳遞されたプレミアム ストヌリヌ、9,000 以䞊の雑誌や新聞にアクセスしおください。

MUTUAL FUND INSIGHTのその他の蚘事すべお衚瀺
International Mutual Funds Find Flavour But Lose Favour
Mutual Fund Insight

International Mutual Funds Find Flavour But Lose Favour

Despite stellar performance, these funds are cold-shouldered by investors

time-read
3 分  |
September 2023
The Dose Makes The Poison
Mutual Fund Insight

The Dose Makes The Poison

Are your fund investments diversified? Or are they diworsified? Here’s the solution

time-read
5 分  |
September 2023
'Since Sahi Hai drive launch, industry has grown over twofold'
Mutual Fund Insight

'Since Sahi Hai drive launch, industry has grown over twofold'

The AMC’s marketing and corporate communication head also lauds MFCentral and MF Utility

time-read
3 分  |
September 2023
'Earlier, not many knew of mutual funds; now SIP is a verb'
Mutual Fund Insight

'Earlier, not many knew of mutual funds; now SIP is a verb'

The CMO also explains how 4G, fintechs have elevated mutual funds’ reach

time-read
4 分  |
September 2023
'MFCentral is the most impressive of online platforms'
Mutual Fund Insight

'MFCentral is the most impressive of online platforms'

Shah says though passive funds are growing, there’s a long road ahead

time-read
3 分  |
September 2023
'Fintechs are driving mass financial inclusion'
Mutual Fund Insight

'Fintechs are driving mass financial inclusion'

Shah also lauds the pace at which distributors have embraced technology

time-read
2 分  |
September 2023
'A Maldives tour guide knew of the Mutual Fund Sahi Hai drive'
Mutual Fund Insight

'A Maldives tour guide knew of the Mutual Fund Sahi Hai drive'

Interaction with Edelweiss’s senior VP and head of products and marketing

time-read
3 分  |
September 2023
'More distributors will come to MFCentral, MF Utility'
Mutual Fund Insight

'More distributors will come to MFCentral, MF Utility'

Goyal feels they can grow their business five times, 10 times with tech

time-read
3 分  |
September 2023
'The size of passive funds has grown 36 per cent in a year'
Mutual Fund Insight

'The size of passive funds has grown 36 per cent in a year'

Parija explains how mutual funds have gained traction

time-read
5 分  |
September 2023
Tomorrow, and tomorrow, and tomorrow...
Mutual Fund Insight

Tomorrow, and tomorrow, and tomorrow...

There are a total of about 1.1 lakh crores of rupees invested in India’s mutual funds and the number of investors is now about 12 crore

time-read
4 分  |
September 2023