Investors in international mutual funds are a bit worried. International funds are broadly categorised as funds investing in global commodities, emerging markets and developed economies.Another reason for the underperformance over the short term is the strong rupee. The returns from investments in international mutual funds and the value of the rupee move in opposite directions. The main idea of investing in international funds is to diversify and partly hedge the investments in Indian equity market. That is why investment experts recommend investing 5-10 per cent of the total portfolio in international mutual funds.

Source: Economic Times March 28, 2017 05:42 UTC