Best International Mutual funds to invest in 2016 post Brexit

Best International Mutual funds to invest in 2016Best International / Global Mutual funds to invest in 2016 post Brexit


Brexit Suspense gone. Great Britain citizens voted to exit from the EU. Stock markets across the world tumbled. There are various international or global mutual funds India, which are investing across the world. While all mutual funds would have an impact in the short term, there are some global or international mutual funds that are performing well and would continue to perform well in the short to medium term even after Brexit. Which are the top and best International Mutual funds to invest now? Which are the best global mutual funds which are expected to perform well in coming years?

How I picked-up these top international / global mutual funds?


These Top and Best International Mutual Funds in India have been analyzed and shortlisted based on certain key parameters.

  • Picked based on highest returns received in the last 1 to 3 years.
  • Since international mutual funds would tend to perform well in the short to medium term only, returns across 1 years to 3 years are considered to pick-up top international funds.
  • Crisil does not rank these funds, hence I have ignored this parameter in ranking the funds.
  • Value Research Online (VRO) does not rank these funds, hence I have ignored this parameter in ranking the funds.
  • AUMs (Assets under management) > 20 Crores. Since these are volatile compared to other equity funds, investment in these funds are less and I have reduced AUM parameter from minimum Rs 100 Crore to Rs 20 Crores.

Also Read: Top 10 Mutual Funds that can fetch you higher returns

Best International Mutual funds to invest in 2016 post Brexit

# 1 – ICICI Pru US Blue Chip Equity


This scheme aims to provide long term capital appreciation by investing in equity and equity related securities, including ADRs, GDRs issued by Indian and foreign companies and companies listed on the New York Stock Exchange (NYSE) and NASDAQ.

Why to invest: This mutual fund scheme gave highest annualized returns of over 15% in last 3 years. It gave 6.7% returns in last 1 year. If you would have invested Rs 1,000 per month in this scheme for last 3 years, your investment would have been Rs 36,000 and your investment value would have grown to Rs 41,000.  US economy has been growing and companies in US are expected to grow in future too, hence this mutual fund scheme is expected to do well in future. One of the best international mutual fund to invest.

# 2 – DSP BR World Gold fund


The fund would predominantly invest in units of BlackRock Funds – World Gold Fund. In addition to this, a significant part of its corpus would be invested in units of other similar overseas mutual fund schemes.

Why to invest: This mutual fund scheme gave highest annualized returns of over 10.5% in last 3 years. It gave amazing 41.9% returns in last 1 year. If you would have invested Rs 1,000 per month in this scheme for last 3 years, your investment would have been Rs 36,000 and your investment value would have grown to Rs 48,000. The yellow metal has become precious in the last few quarters. With Britain exiting EU, investors have started pumping money to safer investment bet like Gold. One of the best gold international mutual fund to invest now.

# 3 – Kotak World Gold Fund – Standard plan


This fund will invest in companies engaged in the extracting, processing and marketing of gold through an international fund. Its primary investment objective will be to provide long term capital appreciation by investing predominantly in units of Falcon Gold Equity Fund.

Why to invest: This mutual fund scheme gave highest annualized returns of over 9.9% in last 3 years. It gave amazing 36% returns in last 1 year. If you would have invested Rs 1,000 per month in this scheme for last 3 years, your investment would have been Rs 36,000 and your investment value would have grown to Rs 46,000. Even this mutual fund scheme is expected to benefit from the Britain exiting EU as investors are pumping money to safer investment bet like Gold. Good international mutual fund to invest now.

# 4 – Birla Sun Life Global Real Estate Fund


The scheme will invest at least 65% in ING Global Real Estate Securities Fund, up to 35% in the units of other similar overseas mutual fund schemes and may also keep up to 20% of its corpus into money market securities.

Why to invest: This mutual fund scheme gave highest annualized returns of over 8% in last 3 years. It gave returns of 11% returns in last 1 year. If you would have invested Rs 1,000 per month in this scheme for last 3 years, your investment would have been Rs 36,000 and your investment value would have grown to Rs 39,000. This has only 8% of EU exposure, hence it would have less impact of Brexit.  

# 5 – ICICI Prudential Global Stable Equity Fund


The scheme seeks to provide adequate returns by investing in the units of overseas mutual fund schemes, which have the mandate to invest globally. Accordingly, the Scheme intends to invest in the units/shares of the Nordea 1 – Global Stable Equity Fund – Unhedged (N1 – GSEF – U) and/or other overseas mutual funds. The fund manager may also invest in one or more other overseas mutual fund schemes, with similar investment policy/fundamental attributes and risk profile and is in accordance with the investment strategy of the Scheme.

Why to invest: This mutual fund scheme gave highest annualized returns of over 11% in last 2 years. It gave returns of 10.2% returns in last 1 year. If you would have invested Rs 1,000 per month in this scheme for last 2 years, your investment would have been Rs 24,000 and your investment value would have grown to Rs 29,000. It has less than 3% of UK exposure in its portfolio, hence would have less impact of Brexit.

Also Read: Best Midcap Mutual funds that gave amazing returns

List of Best International / Global Mutual funds to invest in 2016


List of Best International Mutual funds to invest in 2016

Conclusion: One should have some exposure to international or global mutual funds in their portfolio to enjoy the returns from growth of global economies. You can invest top 3 funds from this list and invest 5-10% of your portfolio in such funds.

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Suresh
Best International Mutual funds to invest in 2016 post Brexit

3 comments

  • Sreeni

    Suresh,

    Thank you for all the great articles. Do you think it is worth taking risk in these mutual funds as even normal RDs can give around 7.5 to 8.5% guaranteed returns?

    • Hi Sreeni, If you are planning to invest in mutual funds, you can park some money in these international mutual funds. Don’t just see 9% returns, I would see around 12% to 15% annualized returns even from these funds

  • ravi

    Good article. Pls also include PPFAS fund which is a value fund. It has about 30% exposure to international shares directly. It gives tax benefit after one year holding and does hedging to protect

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