Mutual Fund Schemes: ‘Stay on Global MF Schemes, Avoid Lump sum Investing’


Mumbai: Investor’s stake in international equities Mutual Fund Schemes Selling in various has led to a fall of 30-40% global market in the last six months. but Investment Advisors and analysts are suggesting that investors should maintain these investments despite losses and even revisit new systematic investment plans.sip) in them as and when regulatory restrictions are removed.

Investors can still start investing in some of the index schemes tracking US indices available for investment.

'Stay on Global MF schemes, avoid lump sum investment'

Vidya Bala, Co-Founder, Prime Investor, a retail research firm. He added that conservative investors can start investing in the S&P 500 Top 50 ETF, while more aggressive investors may consider the Nasdaq 100 Fund.

At present, Indian investors cannot make fresh investments in most of the international schemes of domestic mutual funds as the industry has reached the $7 billion limit. The industry is awaiting RBI’s nod to increase the limit. However, investors can only buy a handful of international ETFs that have a separate limit of $1 billion. This is the Nasdaq 100 scheme. A study by ET reveals that all top international schemes with assets over ₹1,000 crore – except Kotak Nasdaq 100 FoF, which feeds into the Nasdaq 100 – no longer accept fresh money.

Aggressive rate hikes by the Fed and a sharp correction in US markets on fears of a sharp economic slowdown have led to a sharp fall in the net asset values ​​(NAVs) of international schemes. The valuation of US stocks declined as the broad-based S&P 500 trading price to earnings (PE) ratio stood at 19 times, down from its 10-year average of 26.38 times. But financial planners agree that it is not time for a mass of uncertainty to move into US equities.


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