What is a global investment fund?
A global fund is a fund that invests in companies located anywhere in the world including the investor's own country. A global fund seeks to identify the best investments from a global universe of securities. Global funds may also be passively managed.
For example, you can prefer the US market for technology, Europe for engineering, and Australia for commodities. If you are interested in healthcare or pharmaceuticals, there are several options in the US and Europe. You can access multiple geographies through ETFs.
Global Investment or International Investment is a strategy of selecting the global-based investment options for your portfolio. These investments include options like Mutual Funds, exchange traded funds and direct investments in foreign markets.
By definition, international funds invest in non-U.S. markets, while global funds may invest in U.S. stocks alongside non-U.S. stocks.
As with any investment, international investing carries risks, including some unique to international markets, such as currency risk or changes to economic, political, or regulatory conditions.
Advantages of Global Investments
Geographical Diversification: Investing globally reduces your exposure to a single market, distributing your risk. Different regions have distinct performance patterns that help mitigate market volatility and potentially improve your risk-adjusted returns.
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The Fund aims to provide an income return on your investment that is above average when compared to the income produced by global equity markets (as defined by the MSCI All Countries World Index), without sacrificing capital growth (i.e. the value of the assets held by the Fund) over the long term (5 years or more).
A global fund is a fund that invests in companies located anywhere in the world including the investor's own country. A global fund seeks to identify the best investments from a global universe of securities. Global funds may also be passively managed.
The Global Fund provides grants in HIV/AIDS, tuberculosis, malaria and health systems strengthening to low- and middle-income countries.
Which global fund is best?
Fidelity Index World is the most popular option of all. It tracks the MSCI World benchmark, which measures the performance of large and mid-cap stocks across 23 developed markets. The fund has ongoing charges of just 0.12% and over the last five years has generated an annualised return of 13.3%.
Investing internationally provides diversification and potential for growth, especially in emerging markets, but it comes with a set of risks. Among them, the main ones are the higher costs, the changes and fluctuations in currency exchange rates, and the different levels of liquidity in markets outside the U.S.
Equities and equity-based investments such as mutual funds, index funds and exchange-traded funds (ETFs) are risky, with prices that fluctuate on the open market each day.
| Fund Name | Category | Risk |
|---|---|---|
| Sundaram Equity Hybrid Fund | Hybrid | High |
| Tata Balanced Advantage Fund | Hybrid | High |
| ICICI Prudential Balanced Advantage Fund | Hybrid | High |
| Sundaram Balanced Advantage Fund | Hybrid | High |
Investing in global equities brings you the opportunity to boost returns from the growth portion of your portfolio. By choosing global equities you can seek exposure to capital growth and dividend returns from some of the world's most successful companies.
Key Takeaways
This uncertainty can come from any number of factors including political, economic, and sovereign default risk. In general, countries are categorized into three levels of development: frontier, emerging, and developed markets, which are characterized by decreasing levels of country risk accordingly.
Investors can access foreign stocks via ADRs, GDRs, direct investing, mutual funds, ETFs, and MNCs. Buying foreign stocks allows investors to diversify their portfolio's risk, in addition to giving them exposure to the growth of other economies.
Investing in international funds allows you to benefit from the growth in multiple economies and earn better returns. It also helps you diversify your investments while boosting the quality of your portfolio.
They're seen as one of the riskiest share classes, but could be attractive for investors seeking a higher risk profile that generates growth as well as income.
International fund investing can offer higher returns, but usually with more risk. Some factors that can increase risk include: Currency volatility can affect the real returns of an investor's portfolio.
What is the dollar income paying fund?
The Dollar Income Paying Fund aims to obtain capital growth and regular income payouts by investing primarily in a diversified portfolio of USD-denominated exchange traded funds (ETF).
Income funds generally have less risk than equity funds since they primarily hold fixed-income securities. However, they also offer lower potential returns. An income fund's risk and return mix depends on the underlying securities' credit quality, interest rate changes, and the fund's management.
This fund aims to generate income and long term capital growth. It primarily invests in a combination of equity and fixed income securities from anywhere in the world.
Eligibility is determined by a country's income classification2 and disease burden3. All low and lower- middle income countries are eligible, regardless of disease burden.
More than 80 countries have made or pledged contributions to the Global Fund to accelerate the fight against the three diseases. The majority of the Global Fund's financial support comes from public resources.
