A Global Equity Opportunities Fund Is A Lot More Than Glamour-Here's Why

ByLily A Singh

Global Equity Opportunity Fund in India is an investment in foreign company shares. After investing in shares for over five years, you can get fixed returns from reliable income options and will also be able to beat the rate of inflation. But you must be prepared to face the ups and downs along the way. The Global equity opportunity fund in India is suitable for investors who wish to use their money in diverse markets. The money invested in global funds also allows you to insulate the sum even if Indian markets are facing a rough patch. If you are adamant to invest in global funds, then you must make sure to invest in different sectors and sizes of companies based in different countries. A broad mandate will minimize risks and increase fixed returns. You must invest in equity funds through the route of SIP. The global funds in India allow the participation of different countries in different industries. Let us look at some of the advantages of investing in global funds that make it a lot more than glamour:

  • The rise of global opportunity- The main aim is to invest in international companies that have a good growth return. It also leads to diversification and great exposure to companies across the globe. 
  • It is about companies and not countries- The Global Equity Opportunity Fund in India is flexible in identifying business opportunities irrespective of regions. You get the chance to invest in the top global companies such as Netflix, Amazon.com, Nike, Alibaba, and others. 
  • It also gives you a transparent track record of the underlying schemes offered by the global funds.
  • The investment strategy of the scheme is generating long-term capital gains by investing in different sectors of overseas funds.
  • This type of investment is suitable for people who are looking for long-term capital gain and are willing to take high risks. 
  • Investors must take the help of their financial advisors before diving into the global mutual funds as it requires a good in-depth understanding.
  • The taxation system of the Global Equity Opportunity fund in India is another reason what makes it more than just glamour. For taxation purposes, it is a non-equity fund which means that if the holding period of the fund is more than 36 months, it will be regarded as a long-term asset. Before the period of 36 months, it will be regarded as a short-term asset under the income tax of India. Indexation will also benefit the fund.
  • Asset under Management also plays a crucial role in determining the popularity and performance of the mutual fund scheme. AUM is the total asset value under the mutual fund scheme. An equity mutual fund company updates its AUM at the end of every month but the AUM changes daily. It shows how much money has been invested in the company. It also helps investors in understanding the performance of the company with a good AUM. But some companies have a small AUM and still perform well. Therefore, you must consult a financial advisor or expert before taking any step.