5 Best International Mutual funds for 2018

Best International Mutual funds for 2018


Last year, we have recommended some of the top international mutual funds for 3-5 years tenure and some of them have already started performing well. There are various international or global mutual funds India, which are investing across the world in various emerging and existing sectors. This would take away any domestic political and economical factors. If you are tired of investing in domestic markets, you should try international mutual funds for investment. Which are the top 5 best International Mutual funds to invest now in 2018? Which are the best global mutual funds 2018 which are expected to perform well in coming years?

Also Read: Top 5 Best Small Cap Mutual Funds to invest in India in 2018

How our last year Top 5 International Mutual Funds performed?


We have recommended global funds last year and lets see their performance in the last 3 months and 1 year.

1) Motilal Oswal MOST Shares NASDAQ 100 ETF Fund – Returns in the last  3 months are 10% and returns in the last 1 year are 30%.

2) ICICI Pru US Blue Chip Equity Fund – Returns in the last  3 months are 9% and returns in the last 1 year are 19%.

3) DSP BR World Gold fund – Returns in the last  3 months are 3% and returns in the last 1 year are -9% (negative). The fund is performing in line with global gold markets where we are not seeing any direction as of now.

4) ICICI Prudential Global Stable Equity Fund – Returns in the last  3 months are 8% and returns in the last 1 year are 5%. The investments done by this fund are yet to catch up the potential in the global market.

5) ICICI Pru US Equity Fund – This fund was combined earlier with US Bluechip fund – Returns in the last  3 months are 9% and last 1 year are 19%.

5 Best International Mutual funds for 2018


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

1) Picked based on highest returns received in the last 1 to 3 years.

2) Since international mutual funds would tend to perform well in the short to medium term, returns across 1 year to 3 years are considered while filtering top international funds.

3) Crisil does not rank these funds, hence I have ignored this parameter in ranking the funds.

4) Value Research Online (VRO) does not rank these funds, hence I have ignored this parameter in ranking the funds.

5) AUMs (Assets under management) > 75 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 50 Crores.

5 Best International Mutual funds for 2018


# 1 – Motilal Oswal MOST Shares NASDAQ 100 ETF Fund


Overview: The mutual fund scheme seeks investment return that corresponds to the performance of NASDAQ 100 Index, subject to tracking error.

Why to invest: This ETF fund scheme gave highest annualized returns of over 23% in the last 5 years, 19% annualized returns in the last 3 years and 30% returns in the 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 50,000.  This fund is not rated by Crisil nor by Value Research Online (sector funds, they don’t generally rate them). This fund was launched 7 years back, hence comparing to its benchmark of Nasdaq 100, this fund has outperformed all other international funds. Minimum investment is Rs 10,000 and no SIP is allowed. However, you can invest a fixed amount every month. Its Top 5 Holdings include Apple Inc, Amazon.com Inc, Microsoft Corporation, Facebook and Alphabet Inc class. This is one of the good international mutual funds to invest in 2018.

# 2 – Franklin India Feeder Franklin US Opportunities Fund


Overview: The mutual fund fund aims to provide capital appreciation by investing predominantly in units of Franklin U.S. Opportunities Fund, an overseas Franklin Templeton mutual fund, which primarily invests in securities in the United States of America. The fund principally invests in small, medium and large capitalisation U.S. companies with strong growth potential across a wide range of sectors.

Why to invest: This fund scheme gave second highest annualized returns of over 17% in the last 5 years, 11% annualized returns in the last 3 years and 29% returns in the 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 50,000.  Minimum investment is Rs 5,000 and minimum SIP investment is Rs 500 per month for 12 months. This fund invests in Franklin US Mutual Fund scheme directly and no separate investment objective.

# 3 – Edelweiss Greater China Equity Off-shore Fund


Overview: The Scheme is to provide long term capital appreciation by investing in JPMorgan Funds – JF Greater China Equity Fund, an equity fund which invests primarily in a diversified portfolio of companies incorporated or which have their registered office located in, or derive the predominant part of their economic activity from, a country in the Greater China region.

Why to invest: This fund scheme gave 3rd highest annualized returns of over 15% in the last 5 years, 10% annualized returns in the last 3 years and 29% returns in the 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 50,000.  Minimum investment is Rs 10,000 and minimum SIP investment is Rs 500 per month for 12 months. This fund invests in JP Morgan Funds – JF Greater China Fund scheme directly and no separate investment objective.

You may like: Top 10 Large Cap Mutual Funds to invest in 2018

# 4 – ICICI Pru US Blue Chip Equity Fund


Overview: 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 fund scheme gave 4th highest annualized returns of over 14% in the last 5 years, 11% annualized returns in the last 3 years and 19% returns in the 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.  Minimum investment is Rs 5,000 and minimum SIP investment is Rs 1,000 per month for 6 months. This fund Top 5 holdings are Amazon Inc, Alphabet Inc Class, Merck & Co Inc, Mondelez International and Stericycle Inc.  This is one of the best international mutual funds to invest in 2018.

# 5 – DSP BlackRock US Flexible Equity Fund


Overview: The objective of this scheme is to achieve capital appreciation by investing predominantly in units of BlackRock Global Funds US Flexible Equity Fund. The scheme may also invest in units of other similar overseas mutual fund schemes.

Why to invest: This fund scheme gave 5th highest annualized returns of over 14% in the last 5 years, 11% annualized returns in the last 3 years and 20% returns in the 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 47,000.  Minimum investment is Rs 1,000 and minimum SIP investment is Rs 500 per month for 6 months. This fund invests in Black Rock Global Funds – US Flexible Equity Fund scheme directly and no separate investment objective.

List of Top 5 International Mutual Funds for 2018


Who can invest in International / Global Mutual Funds?


Global mutual funds invests outside India and in specific sectors. Hence these mutual fund schemes are high risk. If you are high risk investors and willing to take advantage of potential opportunities in global economy, you can invest in these international mutual funds. If you are moderate risk take or low risk taker, you should stay away from these MF schemes.

Also read: Best Aggressive Growth Mutual Funds to invest now

Are these for long term investment?


Like sector mutual funds, even global funds are high risk and can change its direction in either ways from positive to negative and vice versa. These international funds should be invested for short term to medium term only. Ideal period is for 1 to 3 years unless you feel that there is potential in that segment for little longer term.

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 around 10% of your portfolio in such funds. These funds tend to perform well and when you feel you got adequate return of 15% to 20% returns per annum for a 1-3 years period, you can exit them. These global funds are NOT for long term investment.

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Suresh

Best International Mutual funds for 2018

10 comments

  • james

    I have a demat account with zerodha. How to buy Motilal Oswal MOST Shares NASDAQ 100 ETF Fund .

    I checked motilal oswal's website, this fund is not showing there

  • rln

    Hi Suresh: i leanred that the above funds are(except ICICI) available only in Share market not in Mutual funds to invest.

    Hence am not sure how we can do a SIP on these funds. Next time request you mention such detail as well.

    • Hi RLN, First one is Exchange Traded Fund and you need buy them thru demat account. All others are normal mutual funds and you can buy them like any other mutual fund.

      • rln

        thank you Suresh, another detail i need is which share are they investing?

        For ex: Franklin India Feeder – Franklin U.S. Opportunities Fund(D)
        in your list says as below:

        .No. Name of Holding Net Assets (%)
        1 Franklin U.S. Opportunities Fund, Class I (Acc) 99.62
        2 Call, Cash & Other Assets 0.38

        and Edelweiss Greater China Equity Off-shore Fund

        No. Name of Holding Net Assets (%)
        1 GREATER CHINA SHARES CLASS C ACC 98.01
        2 Clearing Corporation of India Ltd. 1.61
        3 Net Receivables/(Payables) 0.38

        what are the actual company involved in no.1 of each funds? and also other funds has sector as “miscellaneous” which also does not say which sector and which shares.

  • Inderjeet yadav

    Request for subscription.

  • Prodipto mondal

    Please provide one banking and one pharma mutual fund for long term investment.

  • Vijay Sharma

    Regarding subscription

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