There are multiples ways available to invest internationally. One of the simplest ways to take global exposure is by using India domiciled funds and exchange traded funds (ETFs) that invest in international markets. There are 39 such funds and ETFs now available in India. These funds could directly invest in global securities or could invest in a foreign domiciled fund that invests in global securities. Few benefits and key features are highlighted below.
- Hassle free investments – It is just like investing in any other mutual fund. No separate account is required.
- INR denominated – Invests are denominated in INR. This will allow an investor to overcome the
limitation of the Liberalized Remittance Scheme (LRS) that has a limit of USD 250,000 per resident
investor per financial year.
- Liquidity – Investments can be sold on any business day. Proceeds from redemption get credited to
investor’s registered bank account directly within few business days.
- Very small minimum investment requirement – The minimum ticket size for some of these funds is
as low as INR 500.
- Multiple options available – Most major economies get covered by these 39 funds and ETFs that are
available. There are few funds that also invest in global debt, commodities, specific sectors, etc.
Sharp Rise in Investor Interest
Assets managed by these funds has more than doubled in the last 1 year.
Sanctum Global Allocator
For investors that want an actively managed global equity portfolio, Sanctum Wealth offers a PMS strategy that allows one to dynamically allocate across geographies.
- Dynamic Allocation – The strategy does dynamic allocation across geographies using a basket of
domestic funds and ETFs that invest internationally. The allocation is reviewed regularly to capture best
opportunities across geographies.
- Experienced Research Partner – Mr. Gary Dugan, former Global Chief Investment Officer at Nomura
Wealth Advisors acts as a research partner to this strategy. Mr Gary Dugan has close to 35 years of
experience of providing investment advice across geographies. He has held senior positions at firms
like JP Morgan Investment Management, Barclays Wealth, RBS Coutts, Merill Lynch Wealth
Management, Emirates NBD Bank etc.
- Extensive geographical coverage – Most of the major global markets are covered by the strategy.
The strategy has outperformed its benchmark (75% MSCI World and 25% MSCI Emerging Market Index) and Nifty over the last 6-month, 1 year and since inception.