International Equity is stocks that are purchased outside the stock market. International equity funds are similar to international mutual funds or international stock funds. But the bottom-line principle remains the same i.e. they consist of non-Indian. stocks. These funds purchase stocks based on a specific investment strategy and then sell the mix of shares to various investors. There lies a difference in this case which says that all stocks are in companies or other sources based outside the India
The most common benefit of international equity is diversification. Portfolio diversity is an ultimate goal for virtually every investor. It follows a direct investment strategy which spreads across numerous opportunities thereby significantly reducing the risk of failure and decline.
Indian and international markets don’t always move in the same direction which is a considerably good sign. There is constant fluctuation in both the markets. As one market goes down, the other market moves in the opposite direction. Also, when any one of the market declines, the other holds firm providing stability to your portfolio.
By investing in international markets, stockholders reduce the impact of turmoil in specific countries.
It doesn’t account for simply reducing risk only. Investing internationally outside the domestic market gives investors access to new growth opportunities. International equities lead to higher returns in emerging markets irrespective of the risks.
Fluctuations are visible in almost all national economies. Different nations witness these kinds of fluctuations at different times.
A situation arises when one nation is slowing down while another nation is growing. Also, if one nation is experiencing market-halting upheaval, another is perfectly poised for massive exportation of materials and products. By investing in international equities, a portfolio can find the difference between the declines of one nation or region with the gains of the other.
Currencies also come into picture where there is a constant exposure to foreign currencies from international equity funds. It creates a different type of diversification.
Our expert advisors will guide you how to invest in international equity .
Direct investment
Indirect investment