Stay invested in US funds even if returns aren't attractive currently

It helps to diversify geographically; while YTD returns of Indian markets are positive and US markets negative, the opposite will also happen at some other time

International funds focused on the United States (US) market have taken a severe beating in this calendar year. These funds have fetched year-to-date (YTD) returns ranging from -3.8 to -28.9 per cent.

Inflation and rate hikes took a toll

One of the key reasons for the market downturn in the US is high inflation. “Inflation has been at the higher end in the US for almost a year. The Russia-Ukraine war has compounded the problem by raising energy prices,” says Pratik Oswal, head–passive funds business, Motilal Oswal Asset Management Company (AMC).

The US market did very well from 2019 to