Global-Exposure-via-International-Mutual-Funds.pptx

International funds are mutual funds enabling Indian investors to invest in foreign companies and markets. They pool money from investors to invest in stocks, bonds, or other assets abroad.

1. (85)

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via International Mutual Funds

2. What are International Funds?

+ International funds let Indian investors invest in
companies and markets outside India.

+ They go beyond Indian stocks and bonds to include
global opportunities.

+ Investments may include U.S. tech companies, European
industries, or other emerging markets. i

+ Investing across countries helps diversify risk.
+ Reduces dependence on the Indian economy alone.

+ If India's market slows, global investments can balance
the portfolio.

+ These funds are managed by professionals who track
international assets.

+ Investors don't need to directly invest abroad
themselves.

3. How do International Mutual Funds Work?

Pool their Selects
mone’ securities Generate

Y
together to invest in returns
D — — i —

Investors Fund Manager Invests in global Returns

companies & markets
| Asia, etc. |

Passed back to

4. What are the Factors to be Considered for Investing
in International Funds?

qi 320 $

Investment Investment Risk Appetite Diversification
Goals Horizon Benefits
TAX
Or =
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Currency

Fluctuations Fund Costs Taxation Rules

5. Who Should Invest in International Funds?
Investors looking
for diversification

Growth seekers 04 Moterate to high

05 Investors planning
for global expenses

Long-term
investors

Mutual fund
investors with
some experience

6. How are International Funds Taxed?

Capital Gain

Equities Holding Period Tax Rates*

jort-Term Capital Less than 24 months Taxed as per the
Gains (STCG) applicable slab rate

jort-Term i More than 24 months Taxed at a special
Gains (STCG) flat rate of 12.5%

Dividend Taxation in India - Taxed under the head Income
from Other Sources.

Tax Slab - Added to the investor's total income and taxed as
per applicable slab rates.

Foreign Tax Deduction - If dividend is already taxed abroad,
relief may be available.

DTAA Benefit - Relief can be claimed under Double Taxation

Avoidance Agreement (DTAA), if India has an agreement with
that country.

‘Avoid Double Taxation

7. Pros of Investing in International Funds

Cons of Investing in International Funds

Provides exposure to global companies and
diversification to markets beyond India.

Returns are affected by global market
volatility, especially in the short term.

Professional fund managers handle all
research and investments in foreign
markets.

Past performance does not guarantee
future returns.

Allows participation in long-term global
growth trends.

Higher expense ratios compared to
domestic mutual funds due to international
transactions

Provides access to global companies and
growth opportunities not available in India.

Taxation is different and can be more
complex than domestic equity funds.

It can be a hedge against domestic inflation
if global markets grow faster than India.

Some funds may have limited liquidity or
restrictions on redemption depending on the
foreign market.