Tipping point: Should investors opt for international funds?

If you look at India’s year-to-date return, it is worse than that of many peers (see table).

To counter underperformance in their home market, investors should opt for international funds. Being in a hard currency-denominated fund will help them counter the long-term trend of the rupee depreciating against it. 

This is especially crucial for those who have foreign currency-denominated financial goals, such as a child’s education in a foreign university, plans to purchase a house abroad, or a world tour. Invest in a US-market fund first as this market has low correlation with the Indian market.