Investing in international funds helps reduce portfolio volatility: Experts

In the past three months, both the Sensex and the broad-based BSE 500 index have gained 8 per cent each. However, this performance pales in comparison to China and the US, the world’s two biggest markets.

China’s broad-market CSI300 Index has gained 22 per cent in three months, while the US' S&P500 index and Nasdaq Composite have gained 10 per cent and 13 per cent, respectively. Not surprising then that mutual fund (MF) schemes investing in global equities have performed well this year.

There are about three dozen international funds offered by domestic MFs with assets under management (AUM) of