#SEBI has allowed #MutualFunds to resume investing in international stocks.βοΈ
But given the steep correction in equities across the globe and fears of a recession in the US, is it a good time to invest in #InternationalEquities?
A π§΅π
But given the steep correction in equities across the globe and fears of a recession in the US, is it a good time to invest in #InternationalEquities?
A π§΅π
First, some background on #SEBIβs order.
Earlier in Feb 2022, the Indian #mutualfund industry had reached its limit ($7 billion) to invest in #DirectStocks overseas.β
But following the steep correction in #equities, thereβs some headroom for mutual funds now. β
Earlier in Feb 2022, the Indian #mutualfund industry had reached its limit ($7 billion) to invest in #DirectStocks overseas.β
But following the steep correction in #equities, thereβs some headroom for mutual funds now. β
#Mutualfund houses will likely start accepting money for overseas investments soon, following #SEBIβs permission.
But should you invest in #InternationalEquities, especially the US, given the fears of economic slowdown and recession?π€
But should you invest in #InternationalEquities, especially the US, given the fears of economic slowdown and recession?π€
Allocating a portion of your #equity investments to #InternationalStocks has benefits.
Indian and other markets donβt move in tandem all the time.π€
So, it makes sense to diversify your #portfolio across different geographies.π
Indian and other markets donβt move in tandem all the time.π€
So, it makes sense to diversify your #portfolio across different geographies.π
Irrespective of the market conditions, you can do an #SIP in #InternationalFunds, mainly if your #goals include sending kids abroad for higher education or you want to emigrate. It can help you cut down the currency fluctuation risk.π§βπ
Also, whether you are #investing in #India or abroad, the basics remain the sameβdonβt worry about #market conditions and donβt time your #investments. Be disciplined, consistent and invest regularly.π
But where exactly should you invest?β¬
But where exactly should you invest?β¬
Broader #indices are always the better option.π
So, opt for #funds that track indices like #SnP500 or #US Total #StockMarket Index rather than taking a thematic bet on tech-heavy indices like #NASDAQ100 100.
NASDAQ 100 has its shortcomings.
So, opt for #funds that track indices like #SnP500 or #US Total #StockMarket Index rather than taking a thematic bet on tech-heavy indices like #NASDAQ100 100.
NASDAQ 100 has its shortcomings.
#NASDAQ100 has delivered stunning #returns in the last 3-5 years. βοΈ
But it took the #index 15 years to reach its previous peak.
After touching 5,048 in March 2000, NASDAQ 100 crossed the same levels in April 2015.βοΈ
But it took the #index 15 years to reach its previous peak.
After touching 5,048 in March 2000, NASDAQ 100 crossed the same levels in April 2015.βοΈ
#NASDAQ100 is appealing as its constituents include @Apple , @amazon , @Google , @Microsoft and @facebook .
But you also can get exposure to these tech giants when you invest in broader market #indices.
But you also can get exposure to these tech giants when you invest in broader market #indices.
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