MANGA. FAGMAN. FAANG
For those who may not be aware, these are acronyms for various combinations of winning international stocks like Microsoft, Facebook, Amazon, Apple, Netflix and Alphabet (parent company of Google), etc.
What do you think when you hear or read about the success stories of these companies?
Do you think ‘Amazing investment opportunities but out of my reach’?
Hold on… They’re not!
We’ll tell you how you can own Facebook (USA), Google (USA), Netflix (USA), Ferrari (Italy), Alibaba (China), Adidas (Germany), Louis Vuitton (France) and other international blue chips.
You keep hearing financial pundits say don't put all your eggs into one basket’. Of course, they’re talking about the concept of diversification.
Now diversification, as you know, is all about spreading your funds across instruments to minimise the risk of anything going wrong with anyone or a few of them. Equally importantly, having a stake in various markets and segments ensures that you can enjoy a piece of their success pie.
So, why restrict yourself to investing all your funds in a single economy when you can benefit from true diversification by investing in the best global champions (stocks)from across different geographies?
Various new age and digital themes like Artificial Intelligence, Internet of Things, Big Data, Robotics, Cloud Technology have been trending powerfully. The leaders in these emerging domains may not have a presence in India or be available for investment on our domestic exchanges…
Fortunately, that should not stop you from investing in them!
Lastly but most importantly, investing in offshore products is an absolute delight for currency hedging. It allows you the luxury of getting adequate exposure to the US dollar as an asset class, a currency that has inflated from Rs. 7.5 in 1966 to nearly Rs. 72 today. This means that any investor could have enjoyed a return of nearly 10 times on the dollar-rupee conversion during that period. Even over a shorter time frame, like over the past two years (1st Jan 2018 to 1st Jan 2020), the Rupee-Dollar exchange rate has moved from Rs 63.24 to Rs 71.36per USD, delivering an absolute return of 12.83%.
Would you have to venture off on your own, select the best global companies, calculate currency conversions, open different accounts, fill up investment forms, figure out and comply with the individual norms of every country whose companies you invest in…and so on?
Ah! That already sounds so tiring!
Do we have a simpler solution?
Yes, we do.
Global Fund of Funds is mutual fund schemes offered by reputed Asset Management Companies offered to Indian investors with a key focus on identifying global investment opportunities and generating optimal returns through them. Managed by experienced fund managers, they save you from the hassles of a stock hunt and active portfolio management, a task that can be extremely time-taking and cumbersome. Plus, you do not have to worry about rupee conversions or the tax norms of various countries. Not just this. You also have the option to invest a lumpsum or via monthly SIPs.
Going global can be great for your portfolio. It could help you to choose emerging and new market leaders with sustainable competitive advantages, irrespective of their regions and locations, thus accelerating your portfolio growth plus giving it stability through diversification.
No. It’s not. The tax applicable is the same as any other equity fund, i.e. 15% on short term and 10% long term holdings.
So, wait no more! The best stocks in the world can be a part of your portfolio. Find out the best schemes for you. To know more write into us at blogcontent@ventura1.com.
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We, Ventura Securities Ltd, (SEBI Registration Number INH000001634) its Analysts & Associates with regard to blog article hereby solemnly declare & disclose that:
We do not have any financial interest of any nature in the company. We do not individually or collectively hold 1% or more of the securities of the company. We do not have any other material conflict of interest in the company. We do not act as a market maker in securities of the company. We do not have any directorships or other material relationships with the company. We do not have any personal interests in the securities of the company. We do not have any past significant relationships with the company such as Investment Banking or other advisory assignments or intermediary relationships. We are not responsible for the risk associated with the investment/disinvestment decision made on the basis of this blog article.
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