Top five performing international funds of July

There are different ways of diversifying your portfolio and one that has been in vogue in the last year has been diversifying into international funds. International mutual funds are those funds that invest in foreign companies. These funds are also referred to as overseas or foreign funds. One of the reasons why these funds are recommended is because they give you geographical diversification.  

A diverse portfolio not only helps in spreading the risks but also, helps you to get an earning potential of different markets. The fund houses are coming up with innovative schemes across market types, sectors, and risk classes. There are international funds dedicated to the US market, Europe, Brazil, China, Asian markets, emerging markets, among others. There are also international schemes focussed on agriculture, mining, and technology sectors. Also, some of these schemes follow a passive investment strategy like investing in an index.  

There are funds that have generated returns in excess of 50 per cent in the last one year. However, the following is the list of the top-five performing international funds excluding gold funds in the last month.   

Investors should be mindful of following the trend and accumulating more and more international funds in their portfolio as we have seen how the recent crackdown in some of the technology companies in China has greatly hampered the returns of the funds dedicated to China. Along with this, there are also plenty of risks such as currency risk associated while investing in international funds.   

Following is the list of the worst-performing funds in the last month. Most of these funds have higher weightage than China-dedicated stocks.