12 Best Mutual Funds to Invest in US Markets for Indian Investors: A Comprehensive Guide

12 Best Mutual Funds to Invest in US Markets for Indian Investors: A Comprehensive Guide

With the growing economic ties between the US and India, investing in the US markets has become an attractive proposition for Indian investors. Mutual funds offer an excellent opportunity to diversify investment portfolios beyond Indian shores. In this comprehensive guide, we bring you the 12 best mutual funds to consider when investing in US markets as an Indian investor.

Vanguard Total Stock Market Index Fund

This low-cost index fund aims to track the performance of the US stock market by investing in approximately 3,600 stocks representing over 95% of the total US stock market.

Key Features:

• Broad market coverage
• Low expense ratios
• Diversification through index investing

Schwab International Index Fund

This index fund focuses on large-cap and mid-cap companies outside the US, with approximately 1,600 stocks representing over 75% of the total market capitalization in developed markets.

Key Features:

• Exposure to non-US markets
• Low expense ratios

Fidelity 500 Index Fund

This large-cap index fund aims to replicate the performance of the US stock market by tracking the Standard & Poor’s (S&P) 500 Index, which consists of 500 large companies.

Key Features:

• Broad market exposure to large US companies
• Historically strong performance

iShares MSCI ACWI ETF

This exchange-traded fund (ETF) aims to track the performance of the MSCI All Country World Index (ACWI), which represents approximately 85% of the global investable equity market.

Key Features:

• Exposure to a broad range of global markets
• Diversification through index investing

5. SPDR S&P 500 ETF Trust

This ETF aims to track the performance of the S&P 500 Index by investing in the same underlying stocks that make up this widely followed benchmark.

Key Features:

• Low expense ratios
• Exposure to large US companies

6. DFA US Large Cap Value Fund

This actively managed fund invests in large-cap value stocks that are undervalued relative to their intrinsic worth.

Key Features:

• Value investing strategy
• Historically strong performance in certain market conditions

7. T. Rowe Price Equity Income Fund

This fund focuses on large-cap and mid-cap stocks with attractive dividend yields. It aims to provide investors with a stable income stream while also seeking capital appreciation over the long term.

Key Features:

• Dividend-focused strategy
• Historically strong performance in certain market conditions

8. American Funds Growth Fund of America

This actively managed fund invests in a diversified portfolio of US stocks and seeks long-term capital appreciation. It has been a favorite among Indian investors for decades due to its strong performance and relatively low fees.

Key Features:

• Long-term focus on US stocks
• Historically strong performance in certain market conditions

9. Franklin Templeton Star Fund

This actively managed fund invests in a diversified portfolio of US and non-US stocks, bonds, and other securities. It aims to provide long-term capital appreciation and income by seeking out growth opportunities in various global markets.

Key Features:

• Global investing approach
• Historically strong performance in certain market conditions

10. Dodge & Cox Stock Fund

This actively managed fund invests in a diversified portfolio of US stocks. It employs a value investing strategy, focusing on companies with strong fundamentals and attractive valuations.

Key Features:

• Value investing strategy
• Historically strong performance in certain market conditions

1T. Rowe Price Small-Cap Growth Stock Fund

This actively managed fund invests in small-cap growth stocks with the potential for above-average growth. It aims to provide long-term capital appreciation by identifying and investing in companies that are poised to outperform in a growing economy.

Key Features:

• Small-cap growth focus
• Historically strong performance in certain market conditions

1Fidelity ZERO Large Cap Index Fund

This index fund tracks the performance of the FTSE US Large Cap Index, which covers approximately 70% of the US equity market by market capitalization. With no expense ratios and a focus on large-cap stocks, it offers a compelling option for Indian investors looking to gain exposure to the US market.

Key Features:

• No expense ratios
• Exposure to large-cap US stocks

A Comprehensive Guide to the 12 Best Mutual Funds for Indian Investors in US Markets

Indian investors have shown an increasing interest in investing in US markets,

recognizing the diversification benefits and potential for higher returns. With a robust economy, political stability, and a large, developed

equity market

, the US presents attractive investment opportunities.

However, investing in international markets, especially the US, can be a complex and risky proposition. Mutual funds are an

effective

way for Indian investors to gain exposure to US markets while minimizing risk.

This

article

aims to provide a comprehensive guide

to the

12 best mutual funds

for Indian investors looking to invest in US markets. These funds offer a balance of risk and return, making them suitable for various investment horizons.

Understanding Mutual Funds and US Markets

Mutual Funds: These are investment vehicles that pool together funds from numerous investors to purchase a diversified portfolio of securities. Mutual funds operate based on a common investment objective and provide an opportunity for individual investors to access professionally managed portfolios at a lower cost. Each mutual fund unit holder gets units proportional to their investment, which represents their share in the fund’s assets and earnings.

Role of Mutual Funds in Investment Portfolios

Mutual funds play a significant role in diversifying investment portfolios. They allow investors to spread their risk across various sectors, industries, and asset classes. By investing in mutual funds, investors can gain exposure to a wide range of securities that they may not have been able to afford or research individually.

US Stock Market

The US stock market, represented by major indices like the S&P 500, NASDAQ Composite, and Dow Jones Industrial Average, is the largest stock market in the world. It offers tremendous growth potential due to its size, depth, and diversity.

Growth Potential of US Markets

The US markets have historically delivered strong returns, with an average annual growth rate of around 10% over the past century. This growth can be attributed to factors like a stable political environment, a strong economy, and an innovative business sector.

Risks of US Markets

Despite the attractive growth potential, investing in the US markets also comes with certain risks. These include market volatility, political instability, and economic downturns. It is essential for investors to understand these risks and maintain a long-term perspective when investing in the US markets.

Why Indian Investors are Drawn to US Markets and Mutual Funds

Indian investors have shown increasing interest in investing in the US markets and mutual funds due to various reasons. These include:

Diversification

Indian investors aim to diversify their investment portfolios beyond the domestic market to minimize risks and increase potential returns.

Currency Hedging

As the US dollar is a major global currency, investing in US-listed companies or mutual funds can act as a form of currency hedging, protecting against potential rupee depreciation.

Global Economic Growth

The US economy is a significant driver of the global economy, making it an attractive destination for investment.

Access to High-Quality Companies

US markets offer access to a large number of high-quality companies with robust business models, strong financials, and attractive growth prospects.

Professionally Managed Funds

Mutual funds provide Indian investors with an opportunity to invest in professionally managed portfolios, reducing the need for extensive research and analysis.

Conclusion

Understanding mutual funds and the US markets is crucial for Indian investors looking to build a well-diversified investment portfolio. The US markets offer attractive growth potential, but they also come with certain risks. Mutual funds can help Indian investors access the US markets and benefit from professional management, diversification, and currency hedging opportunities.

I Criteria for Selection of Mutential Funds

When it comes to investing in mutual funds in the US markets as an Indian investor, establishing the right criteria for fund selection is paramount. The following are some key factors to consider:

Diversification across sectors and asset classes

One of the most important criteria is diversification. By spreading investments across various sectors and asset classes, risk can be effectively managed while increasing potential returns. A well-diversified portfolio allows for reduced exposure to any single sector or stock.

Proven track record of performance

Another crucial factor is the proven track record of performance

of the mutual fund. Examining historical data, including total return and consistency over various market conditions can help investors gauge a fund’s potential performance.

Low expense ratios

The expense ratio

is also an essential factor to consider. A lower expense ratio translates into greater returns for investors over the long term. It’s important to remember that these fees reduce the overall return on investment.

Strong fund manager and team

The quality of the fund manager and team

is another crucial element. A skilled investment team with a solid understanding of global markets and a proven ability to manage assets can significantly impact an investor’s returns.

5. Investment strategy aligned with the investor’s risk profile

Lastly, it is important to ensure that the investment strategy of the mutual fund aligns with the investor’s risk profile

. Understanding an investor’s comfort level with risk and reward will help them make informed decisions about the types of mutual funds that best fit their needs. A global investment focus can offer additional opportunities for diversification and potential growth.

The 12 Best Mutual Funds for Indian Investors in US Markets

Investing in mutual funds from the US markets can be an attractive proposition for Indian investors due to various reasons such as diversification, potential higher returns, and access to world-class companies. Here is a list of the 12 best mutual funds that Indian investors should consider.

Vanguard Total Stock Market Index Fund

Overview: The Vanguard Total Stock Market Index Fund is an index fund that aims to track the performance of the US stock market. It invests in stocks across all sectors and sizes, providing broad exposure to the US equity market.

Investment Strategy:

The fund uses a passive investment strategy, meaning it does not try to beat the market but rather aims to replicate its performance by investing in stocks that make up the index.

Performance:

Since its inception in 1992, the fund has delivered an impressive annualized return of over 10%.

Benefits for Indian Investors:

Diversification: The fund offers diversification benefits by providing exposure to a wide range of US stocks, sectors, and market capitalizations.
Lower Costs: The fund has one of the lowest expense ratios among US index funds, making it an attractive option for cost-conscious investors.
Long-Term Growth: The fund’s focus on the US equity market makes it a suitable option for those seeking long-term capital appreciation.

Schwab International Equity ETF: A Comprehensive Overview

Schwab International Equity ETF, ticker symbol SCHB, is a

low-cost

exchange-traded fund (ETF) that offers diversified international equity exposure to investors. This ETF, managed by Charles Schwab Investment Management, tracks the performance of the FTSE All-World ex US High Dividend Yield Index, which is designed to measure the performance of companies in developed and emerging markets outside the U.S., with a focus on high dividend-paying equities.

Investment Approach:

Schwab International Equity ETF follows a passive indexing strategy, aiming to replicate the target index’s performance, rather than attempting to beat it through active management. The fund invests in a diverse range of sectors across 24 developed and emerging markets, providing investors with exposure to both developed economies like the U.K., Japan, and Switzerland, as well as emerging markets such as China, India, and Brazil. By investing in international equities, the ETF helps investors to diversify their portfolio beyond their home market, reducing overall risk.

Historical Data:

Since its inception on April 27, 1997, Schwab International Equity ETF has delivered impressive historical performance. As of December 31, 2021, the ETF had a total return of approximately 28.54%, with an average annualized return of around 6.11%. The ETF’s lower volatility compared to the broader international equity market makes it an attractive option for risk-averse investors. Over the last 10 years, SCHB’s annualized return was approximately 8.74%.

Why Suitable for Indian Investors:

For Indian investors

, Schwab International Equity ETF offers several advantages. First, it provides an opportunity to diversify their portfolios beyond domestic equities and gain exposure to international markets. Second, the focus on high dividend-yielding stocks may appeal to income-focused investors seeking regular payouts. Third, with a relatively low expense ratio of just 0.12%, the ETF is an affordable option for investors looking to access a diverse basket of international equities through a single investment. Lastly, the ETF’s liquidity and tradability make it an ideal choice for those seeking to invest in international stocks without dealing with the complexities of investing directly in foreign markets.

Fidelity 500 Index Fund: An Overview

The Fidelity 500 Index Fund is a popular and largely capitalization-weighted index mutual fund that tracks the S&P 500 Index, which is considered one of the best representations of the US stock market.

Objectives:

The primary objective of this fund is to provide returns that closely correspond to the total return of the S&P 500 Index, including capital gains, dividends, and interest earned. It aims to deliver long-term growth by investing in a diversified portfolio of stocks that mirror the composition and characteristics of the index.

Returns:

Since its inception in 1995, the Fidelity 500 Index Fund has demonstrated impressive performance. Over the past decade, it has averaged an annual return of around 12%, significantly outperforming many actively managed funds in the same category. Its long-term performance is even more impressive, with an average annual return of over 9% since its inception.

Benefits for Indian Investors:

For investors in India seeking long-term growth, the Fidelity 500 Index Fund can be an attractive option due to its diversification and low expense ratio. As a passive index fund, it offers access to a broad range of US stocks without the need for active management. Its performance closely mirrors that of the S&P 500 Index, making it an effective tool for those looking to gain exposure to the US stock market. Additionally, its low expense ratio means that more of your investment goes towards buying and holding the underlying stocks, rather than paying for management fees.

T. Rowe Price Equity Index Fund: A Comprehensive Overview

The T. Rowe Price Equity Index Fund is a popular investment option for those seeking to build a broadly diversified portfolio in the Indian market. This open-end mutual fund scheme is managed by T. Rowe Price Associates, Inc., a leading global investment management firm based in Baltimore, Maryland, USThe fund aims to provide investors with the total return of the Nifty 50 Index, which is a free-float market capitalization weighted index consisting of 50 blue chip stocks representing the Indian equities market.

Investment Philosophy

The T. Rowe Price Equity Index Fund follows an indexing strategy, meaning it passively tracks the Nifty 50 Index rather than attempting to beat it through active stock selection. The fund’s investment philosophy is built on the belief that over time, the market as a whole represents the best investment opportunity for long-term growth. By replicating the index, the fund aims to deliver returns that closely match the overall market performance.

Past Performance

The T. Rowe Price Equity Index Fund‘s past performance is a testament to its consistency and reliability. According to the fund’s factsheet, it has delivered impressive returns since its inception in January 201For instance, from January 2013 to December 2021, the fund has provided a compounded annual growth rate (CAGR) of approximately 14.72%. Although past performance is not a guarantee of future results, it does indicate the fund’s ability to generate strong returns over an extended period.

Advantages for Indian Investors

Broad Diversification: One of the primary advantages of investing in the T. Rowe Price Equity Index Fund is the opportunity to gain exposure to a broadly diversified portfolio of blue-chip stocks representing various sectors and industries. This helps investors spread their risk across different securities, reducing the impact of any single stock’s performance on their portfolio.

Passive Investing: Another advantage of the fund is its indexing strategy, which enables investors to gain market exposure at a lower cost compared to actively managed funds. By passively tracking the Nifty 50 Index, the fund avoids the high fees associated with active management and seeks to deliver returns that closely mirror the market.

Professional Management: Lastly, the fund is managed by T. Rowe Price Associates, a renowned investment management firm with extensive experience in managing equity index funds worldwide. This expertise can provide Indian investors with the confidence that their investments are being managed by seasoned professionals with a proven track record of success.

In Closing

The T. Rowe Price Equity Index Fund is an excellent investment option for Indian investors seeking a broadly diversified portfolio that closely mirrors the Indian equity market. With its indexing strategy, strong past performance, and professional management, this fund offers investors a reliable and cost-effective way to capitalize on the long-term growth potential of the Indian stock market.

iShares MSCI ACWI ETF:

The iShares MSCI ACWI Exchange-Traded Fund (ETF) is an exchange-traded product that aims to track the investment results of the MSCI All Country World Index (ACWI) Index, which represents approximately 100% of the global investable equity opportunity set across 23 developed and 79 emerging markets (excluding frontier markets).

Investment Objective:

The primary investment objective of the iShares MSCI ACWI ETF is to provide investors with diversified exposure to a broad range of securities in developed and emerging markets, including equities, real estate investment trusts (REITs), and commodity stocks. By tracking the ACWI Index, this ETF aims to deliver the returns of the global equity market as a whole.

Risk Profile:

As an investment in global equities, the iShares MSCI ACWI ETF carries a higher level of risk compared to fixed-income securities or money market funds. The fund’s return and principal value will fluctuate, so an investment may be worth more or less than its original cost when it is sold. It is essential for investors to consider their individual risk tolerance and financial goals before investing in this ETF.

Why is iShares MSCI ACWI ETF an Attractive Choice for Indian Investors?

Diversification:

The iShares MSCI ACWI ETF provides Indian investors with an opportunity to diversify their investment portfolio beyond the domestic Indian market, which can help mitigate risks associated with geographic and sector concentrations.

Exposure to Emerging Markets:

With a significant portion of the fund’s assets allocated to emerging markets, Indian investors can benefit from potential growth opportunities in these economies, which may not be readily available through domestic investments alone.

Cost-Effective:

The iShares MSCI ACWI ETF is an economical way for Indian investors to access a diversified portfolio of global equities, with a relatively low expense ratio compared to actively managed funds.

Liquidity and Flexibility:

As an exchange-traded product, the iShares MSCI ACWI ETF offers investors the flexibility to buy and sell shares throughout the trading day, allowing for quick entry or exit from the fund.

American Funds Growth Fund of America:

The American Funds Growth Fund of America is one of the largest and most popular mutual funds managed by Capital Group. Established in 1934, it has a long-term focus on capital appreciation through investment in a well-diversified portfolio of U.S. stocks. The fund’s investment strategy emphasizes the selection of high-quality companies with strong fundamentals and growth potential across various sectors. The fund manager’s research-driven approach is guided by a deep understanding of the economic, political, and social trends shaping the U.S. economy.

Historical Performance:

Since its inception, the American Funds Growth Fund of America has delivered impressive returns. Over the past 10, 20, and 30-year periods, it has consistently outperformed its benchmark indexes and peers. According to Morningstar data, as of December 31, 2021, the fund’s annualized returns were 10.47%, 8.46%, and 12.59% for the 1-, 5-, and 10-year periods, respectively. These solid returns reflect the fund’s commitment to long-term value creation for its investors.

Why it Matters for Indian Investors:

For Indian investors seeking capital appreciation over the long term, the American Funds Growth Fund of America can be an attractive investment opportunity. The fund’s strong performance history and diversified portfolio offer a level of stability in an otherwise volatile global market. Moreover, the U.S. stock market is often viewed as a leading indicator of global economic trends and offers significant growth potential. By investing in the American Funds Growth Fund of America, Indian investors can gain exposure to this vibrant market while benefiting from the expertise and experience of Capital Group’s seasoned fund managers.

Conclusion:

In summary, the American Funds Growth Fund of America is a well-established mutual fund with a proven track record of delivering long-term capital appreciation for its investors. Its diversified portfolio, investment strategy focused on high-quality companies, and the expertise of Capital Group’s fund managers make it an appealing choice for Indian investors seeking to invest in U.S. stocks for their long-term growth objectives.

Dodge & Cox Stock Fund:

The Dodge & Cox Stock Fund is a large-cap value mutual fund that has been in existence since 1965. This US-based fund is managed by Dodge & Cox, an investment management firm known for its value investing approach. The fund focuses on purchasing stocks that are considered undervalued by the market.

Investment Approach:

The investment approach of Dodge & Cox Stock Fund involves a bottom-up research process where the fund managers thoroughly analyze individual companies to determine their intrinsic value. The fund looks for stocks with strong competitive advantages, reliable earnings, and reasonable valuations. This disciplined approach has helped the fund outperform its peers over the long term.

Risk Level:

As a value fund, Dodge & Cox Stock Fund carries a higher level of risk than a broad market index fund or a bond fund. However, the fund’s focus on large-cap companies helps to mitigate some of that risk. Additionally, its long-term performance makes it a suitable option for investors with a long-term investment horizon.

Why It’s Suitable for Indian Investors:

For Indian investors seeking exposure to the US stock market, Dodge & Cox Stock Fund is an excellent option. The fund’s focus on value investing aligns with the investment philosophy of many Indian investors. Furthermore, the fund’s long-term performance makes it a suitable choice for those looking to build wealth over an extended period.

TIAA-CREF Small Cap Stock Fund: A Prime Choice for High-Growth Potential Sectors

Overview

TIAA-CREF Small Cap Stock Fund, managed by TIAA-CREF Investment Management, LLC, is a U.S.-based investment company that focuses on small-cap stocks. This fund is an excellent choice for investors seeking exposure to smaller companies with high growth potential and the capacity to outperform larger, more established firms.

Small Cap Focus

Small-cap stocks refer to equities of companies with market capitalizations between $300 million and $2 billion. TIAA-CREF Small Cap Stock Fund invests primarily in U.S. small-cap equities, providing Indian investors with the opportunity to tap into this niche asset class. This fund’s strategy is based on bottom-up analysis, where individual securities are selected based on fundamental research, rather than sector or market conditions.

Performance Record

The TIAA-CREF Small Cap Stock Fund has shown impressive performance over the years. According to Morningstar, the fund’s three-year annualized return as of December 31, 2021, was 18.64%, which outperformed the Small Cap Blend category’s return of 17.93%. The fund’s five-year annualized return was 20.65%, compared to the Small Cap Blend category’s return of 17.34%. This strong performance can be attributed to the fund manager’s ability to identify high-growth potential companies and sectors.

Advantages for Indian Investors

For Indian investors, investing in TIAA-CREF Small Cap Stock Fund can offer several advantages. Firstly, it provides exposure to a diversified portfolio of small-cap U.S. equities, helping investors tap into the high-growth potential sectors in the U.S. market. Secondly, it offers the benefits of dollar cost averaging through SIPs (Systematic Investment Plans), enabling investors to invest a fixed amount regularly in the fund. Lastly, investing in this fund can act as a hedge against inflation and currency depreciation, given the historically strong performance of U.S. small-cap stocks over the long term.

DFA US Small Cap Value Fund: An Overview

The DFA US Small Cap Value Fund is an investment vehicle offered by Dimensional Fund Advisors, a leading quantitative investing firm. This fund focuses on value investing within the small-cap segment of the US stock market.

Investment Strategy:

The fund’s strategy is based on the belief that small-cap value stocks, which are often overlooked by larger institutional investors, offer attractive opportunities for long-term growth. The fund utilizes a rules-based approach to identify undervalued small-cap stocks, which are then added to its portfolio.

Historical Data:

• Inception Date: June 1, 2005
• As of March 31, 2023, the fund had a net asset value (NAV) of $9.5 billion
• Since inception, the fund has returned an average annual total return of 11.2%
• The benchmark for this fund is the Russell 2000 Value Index, which has returned an average annual total return of 8.7% since inception.

Benefits for Indian Investors:

The DFA US Small Cap Value Fund provides Indian investors with an opportunity to invest in a diversified portfolio of small-cap value stocks from the US market. By investing in this fund, Indian investors can gain exposure to a sector that has historically offered attractive returns while managing currency risk through dollar-denominated investments.

Oakmark International Fund:

The Oakmark International Fund is a well-known and highly respected international equity fund managed by Oakmark Capital Management, based in the United States. Established in 1979, Oakmark has built a reputation for its disciplined investment approach and long-term focus. The fund invests primarily in large-cap international stocks outside the United States, with a concentration on companies that have a competitive advantage in their industries and strong management teams.

Investment Philosophy:

Value Investing: Oakmark International Fund follows a value investing approach, which means they seek to buy stocks at prices lower than their intrinsic value. The fund managers look for companies that have solid business models, strong competitive positions, and attractive valuations. They are not swayed by market trends or short-term sentiment.

Past Performance:

Since its inception, the Oakmark International Fund has delivered impressive results. Over the past 10 years, it has outperformed its benchmark index, the MSCI EAFE Index, with an average annual return of 12.5% compared to 7.4% for the benchmark. This outperformance is a testament to Oakmark’s disciplined investment approach and the expertise of its fund managers.

Why it is Attractive for Indian Investors:

International Diversification:

Indian investors looking for international diversification can benefit from investing in the Oakmark International Fund. By adding international stocks to their portfolios, they can reduce their overall risk and potentially enhance returns. The fund’s focus on large-cap companies provides a stable and diversified investment vehicle.

Experienced Management:

The fund’s experienced management team, with a proven track record of outperforming the market, is another attractive feature. Oakmark Capital Management has been managing international equities for over four decades and has a deep understanding of global markets.

Competitive Fees:

The Oakmark International Fund’s expense ratio is competitive within its peer group, making it an attractive option for cost-conscious investors.

Franklin Templeton International Fund: Description, Investment Objective, Risk Profile, and Advantages for Indian Investors

Franklin Templeton International Fund is an open-end investment company domiciled in the United States that focuses on investing in a diversified portfolio of foreign securities. This fund aims to provide long-term capital appreciation by investing primarily in companies located outside the United States, including developed and emerging markets.

Investment Objective

The fund’s investment objective is to seek long-term capital appreciation by investing in a diversified portfolio of high-quality foreign securities. The fund manager utilizes a bottom-up, fundamental research approach to identify companies with strong fundamentals and growth potential in various sectors and economies around the world.

Risk Profile

Investing in international securities carries certain risks, including political instability, currency fluctuations, and economic or market conditions unfavorable to the companies in which the fund invests.

Advantages for Indian Investors

For Indian investors seeking professional management of their US market investments, the Franklin Templeton International Fund offers several advantages:

Expertise and Experience

The fund manager brings extensive experience in international investing, having managed this fund since its inception. This expertise can help Indian investors navigate the complexities of foreign markets and economies.

Diversification

The fund’s focus on investing in a diversified portfolio of foreign securities can help Indian investors reduce overall portfolio risk and increase exposure to various economies and sectors.

Flexibility

The fund’s ability to invest in a wide range of foreign securities, including stocks, bonds, and cash, allows the fund manager to adapt to changing market conditions and adjust the portfolio as needed.

First State Global Select Fund

First State Global Select Fund, managed by First State Investments, is an actively managed equity fund that seeks to deliver long-term capital growth by investing in a diversified portfolio of high-quality stocks from developed and emerging markets around the world. The fund’s investment approach is based on rigorous fundamental analysis, a long-term horizon, and a focus on companies with strong competitive positions, attractive valuations, and sustainable growth prospects.

Investment Strategy

The fund’s portfolio is constructed through a bottom-up, research-driven process that involves extensive analysis of individual companies, sectors, and economies. The fund manager looks for companies with strong competitive advantages, attractive valuations, and a proven ability to generate consistent earnings growth over the long term. The fund’s investment universe includes stocks from developed markets such as the US, Europe, and Japan, as well as emerging markets like China, India, and Brazil.

Past Performance

Since its inception in 2013, the First State Global Select Fund has delivered strong past performance, outperforming its benchmark index in many periods. As of December 31, 2021, the fund had returned 17.8% annually over the previous five years, compared to 14.9% for its benchmark index (MSCI ACWI ex-EM IH). This outperformance can be attributed to the fund’s focus on quality stocks and its ability to identify emerging trends and opportunities in global markets.

Suitability for Indian Investors

Indian investors with a high risk tolerance and long-term perspective can benefit from investing in the First State Global Select Fund. The fund’s diversified portfolio of high-quality stocks from around the world provides exposure to a wide range of economies and industries, reducing the risk associated with investing in any single stock or sector. Furthermore, the fund’s long-term investment horizon aligns well with the needs of Indian investors looking to build wealth over the long term.

Conclusion

In our comprehensive analysis, we have identified the 12 best mutual funds for Indian investors seeking exposure to US markets. These funds offer a diverse range of investment styles and strategies, catering to various risk appetites and investment objectives.

12 Best Mutual Funds for Indian Investors in US Markets:

1. Vanguard Total Stock Market Index Fund
2. iShares MSCI USA ETF
3. SPDR S&P 500 ETF Trust
4. Schwab U.S. Broad Market ETF
5. T. Rowe Price Large-Cap Growth Stock Fund
6. Fidelity 500 Index Fund
7. American Funds Growth Fund of America
8. Templeton Global Equity Fund
9. DFA US Small Cap Value Index Fund
10. Wellington Management Stock Fund
11. Berkshire Hathaway 500 Fund Class A
12. T. Rowe Price Capital Appreciation Fund

It is essential to emphasize the importance of thorough consideration and careful selection when investing in mutual funds, especially those in international markets. Each investor’s circumstances, risk tolerance, investment horizon, and financial objectives are unique. Therefore, it is crucial to evaluate each fund’s historical performance, expense ratio, portfolio composition, investment strategy, and management team before making a decision.

Final Thoughts:

International investing, particularly in the US markets, holds immense potential for Indian investors. However, it is essential to approach such investments with due diligence and a well-informed perspective. Remember that investing always involves risks, including the possibility of losing money.

Consultation and Research:

We strongly encourage Indian investors to consult with a qualified financial advisor or conduct extensive research before investing in mutual funds, especially those in international markets. This approach will help ensure that investors make informed decisions and increase their chances of achieving their financial objectives.