Global Index Fund
Diversify your portfolio internationally with Global Index Funds, which invest across a broad range of countries and industries worldwide. These funds aim to track the performance of global indexes, offering exposure to the world's leading companies.
What are Global Index Fund?
With global index funds, investors can diversify their fund portfolios even further as these funds pool their money and invest in stocks or assets from various countries around the world, mirroring the performance of global market indices.
This type of fund aims to provide an average annual return of 16-22%, offering a blend of growth and risk management. They're designed for investors looking to expand beyond domestic markets and explore global economic growth.
Best Global Index Funds
List of the top-performing global index funds sorted by returns with their AUM and Expense Ratio.
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AUM ₹1694 Cr •
Expense 0.73%
AUM ₹3184 Cr •
Expense 0.3%
AUM ₹388 Cr •
Expense 0.59%
AUM ₹3781 Cr •
Expense 0.62%
AUM ₹981 Cr •
Expense 0.9%
AUM ₹3221 Cr •
Expense 1.18%
AUM ₹719 Cr •
Expense 1.28%
AUM ₹0 Cr •
Expense 0%
AUM ₹1019 Cr •
Expense 0.15%
AUM ₹176 Cr •
Expense 0.3%
Points to consider before investing in Global Index Funds
Market Volatility
While Global Index Funds offer diversification, they're also subject to international market fluctuations. Political, economic, and currency risks in different countries can impact your investment. It's essential to be prepared for potential volatility and consider how these global factors might affect your portfolio.
Taxation
Understand the tax implications of investing in Global Index Funds. The taxation rules for international investments can be different from domestic ones and may vary based on your residency. It's important to know how dividends, capital gains, and foreign taxes will affect your returns and to plan your investments accordingly.
Research the Index
Not all Global Index Funds are the same. They may track different indices, focusing on various regions or sectors. Before investing, research the specific index the fund is tracking to ensure it aligns with your investment goals and risk tolerance. This will help you better understand the potential growth and risks associated with the fund.
Question and Answers about Global Index Fund
How are Global Index Funds taxed in India?
Global Index Mutual Funds are taxed as debt funds in India. Long-Term Capital Gains (LTCG) tax applies at 20% with indexation if held for over 3 years. Short-Term Capital Gains (STCG) are added to your income and taxed at your applicable slab rate.
Who should invest in Global Index Mutual Funds?
These funds are ideal for investors seeking global diversification, exposure to international companies, or hedging their investments against currency and domestic market risks. They suit long-term investors with a moderate to high-risk appetite.
Are Global Index Mutual Funds actively or passively managed?
Global Index Funds are passively managed, as they replicate the performance of an international index. This reduces fund management costs and eliminates stock-picking bias.
What are some popular indices tracked by Global Index Funds?
Some popular global indices include:
- S&P 500 Index (U.S. large-cap companies)
- Nasdaq 100 Index (U.S. tech-heavy companies)
- MSCI Emerging Markets Index (emerging market stocks)
- FTSE 100 (top UK companies)
- MSCI World Index (global developed markets).
How does currency fluctuation impact Global Index Fund returns?
Since these funds invest in foreign assets, changes in the exchange rate (e.g., USD to INR) can affect returns. A depreciating rupee typically enhances returns for Indian investors in these funds.
Can I invest in Global Index Funds via SIP?
Yes, you can invest in Global Index Funds through Systematic Investment Plans (SIPs), allowing you to invest small amounts regularly and average out market volatility.
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