International Funds

I read with interest your article on international funds in the last issue. I just wanted to know which type of international fund offers better diversification and would be most beneficial for Indian investors.

- Pranshul Jagtap

Editor Responds
International funds are now the rage as most of the fund houses are launching funds that invest in the international market. They definitely offer you the benefit of diversification benefit but the returns may not be maximised. Allocate a small portion of your investment towards those funds that have a very low correlation with the Indian market.