International mutual funds are mutual fund schemes that invest in overseas securities and global markets.
Some international mutual funds invest entirely in foreign securities, while others invest in a combination of domestic and international stocks.
For example, the ICICI Prudential US Bluechip Equity Fund primarily invests in stocks of large companies listed in the United States.
Similarly, the Parag Parikh Flexi Cap Fund has exposure to both Indian and international companies.
Its portfolio has included global companies such as Meta Platforms, Microsoft, and Amazon along with Indian companies such as HDFC Bank, Power Grid Corporation of India, Coal India, and ITC Limited.
This allows investors to gain indirect exposure to both domestic and international markets through a single mutual fund scheme.
International mutual funds are generally considered by investors seeking long-term capital appreciation and global diversification.
However, these funds are also subject to market risk, currency risk, and geopolitical risks associated with international markets.
Before investing, investors should understand that international mutual funds may experience higher volatility, and returns are not guaranteed.
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