Wednesday, July 4, 2012

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!

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