Gold – Can I cash you NOW?

Investors across the world have witnessed some strange things in the last very few years. Spanning the fall of greatest nations to stronger currencies and even the emerging economies considered as the breed for the future (which they still might be!). Such growing concerns saw investors running for cover with their hard earned monies and eventually sealed the fate of some commodities especially a few precious metals like Silver, Gold with as high returns as reaching three digit growth in just 2 to 3 years.

Considering the better global data thanks to quick measures like the QE and stimulus packages offered by the stack of leading nations to safeguard their interests along with the global aspirations (though partially!) have shown something to smile for the investor community, considering the recent positives around the jobs data, some of the embattled European friends returning to miniscule positive growth.

Since there have been a lot of discussions by the stalwarts of the Investment community that “Sanity has finally prevailed over profanity”

Global Diversification & International Hedge!

MNC’s these days derive revenues from various geographies, for instance many of the big companies in the consumer goods, electronics, retail and oil companies are raking in revenues of up to 55-60% from countries away from the country/region of origin. Well that explains globalization from an enterprise level. However as a commoner or a retail investor trying to maximize the wealth what can be globalized options to build a long term sustainable wealth portfolio. 

Apart from traditional investments which hardly help you beat the inflation and domestic mutual funds which are prone to volatility in the regional markets, investors can look at global funds to have an international hedge as part of the portfolio. These funds can importantly provide you some positive returns even when the benchmark indices give negative returns and help you beat the domestic downgrades.

Amongst a few options compared below in the image, FT India Feeder Fund US opportunities and BSL International Equity fund come trumps with the way these funds are created through the FoF route invested in indices of the US stock market especially.

 

Investors to look at options beyond traditional instruments and vanilla mutual funds!!! Happy Investing!