Should you invest via SIP in global funds amid market volatility? – CNBC TV18
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These developments must have prompted many Indian investors to consider global funds as a way to diversify their portfolios.
A popular method for investing in both global and domestic markets remains the Systematic Investment Plan (SIP), a strategy that can help investors manage market fluctuations.
The power of SIP in uncertain times
Vivek Sharma, Investment Head at Estee Advisors, explains that the stock market operates in cycles of optimism and pessimism.
“An intelligent investor is the one who adopts a contrarian view—being pessimistic when the market is overly optimistic, and optimistic when the market is overly pessimistic,” he notes.
In the current environment, while the Indian market has been making new highs since 2021, recent turbulence has raised concerns about a potential correction.
But, as Sharma advises, “Saying the world will end would lead to inaction, while saying it’s not going to will permit us to do the things that always have worked in the past.”
This reflects the importance of investing with a long-term view, regardless of short-term market fluctuations.
For those looking to hedge against short-term volatility or diversify globally, SIPs offer an ideal solution.
By investing in small, regular amounts over time, investors can mitigate the impact of market fluctuations and avoid trying to time the market—an approach that can be risky and often leads to suboptimal returns.
In fact, data from AMFI reveals that retail investors, especially through SIPs, have been the backbone of India’s equity mutual fund industry.
Despite market turbulence, SIP inflows remained strong, with over ₹25,000 crores invested in recent months.
This shows how SIPs provide a disciplined, long-term approach that can help investors navigate market volatility, both domestically and globally.
But why global funds?
Global funds offer exposure to markets and sectors that are underrepresented in India.
The US, for instance, is home to large-scale technology companies and high-growth sectors like biotechnology and clean energy.
Dinesh Balachandran, Head of Equity at SBI Mutual Fund, explains, “While India is well-diversified, it lacks large technology product companies. Investing globally gives you access to these growth stories.”
Additionally, Nasser Salim, Managing Partner at Flexi Capital, emphasizes that global funds can act as a hedge against the depreciation of the Indian rupee. “The Indian rupee has historically depreciated against the US dollar, making global investments a good way to protect your portfolio,” he adds.
Available global funds for Indian investors
According to Value Research, 35 of 68 global mutual funds available in India are currently open for fresh investments, either through Systematic Investment Plans (SIPs) or one-time lump-sum contributions.
Here are some of the top funds to consider:
hese funds provide exposure to various regions, including the United States, China, and other global markets.
Here’s a look at some of the available funds:
| Fund Name | Region | Assets |
| Motilal Oswal Nasdaq 100 FOF (Only SIP) | United States | ₹5,138 crore |
| Motilal Oswal S&P 500 Index (Only SIP) | United States | ₹3,543 crore |
| Franklin India Feeder Franklin US Opportunities Fund | United States | ₹3,514 crore |
| Edelweiss US Technology Equity FoF | United States | ₹2,251 crore |
| Edelweiss Greater China Equity Offshore | Greater China | ₹1,474 crore |
| PGIM India Global Equity Opportunities Fund | Global | ₹1,352 crore |
| SBI International Access | United States | ₹925 crore |
| Axis Global Equity Alpha FoF | Global | ₹821 crore |
| Kotak Global Innovation FoF | Global | ₹712 crore |
| Axis Global Innovation FoF | Global | ₹511 crore |
| Bandhan US Equity FoF | United States | ₹318 crore |
| Invesco India-Invesco Global Consumer Trends FoF | Global | ₹297 crore |
| Axis Greater China Equity FoF | Greater China | ₹255 crore |
| Aditya Birla Sun Life Global Emerging Opportunities | Global | ₹238 crore |
| ABSL Global Excellence Equity FoF | Global | ₹196 crore |
| Aditya Birla Sun Life International Equity Fund | Global | ₹192 crore |
| Edelweiss US Value Equity Off | United States | ₹116 crore |
| Sundaram Global Brand Fund | Global | ₹115 crore |
| HSBC Global Equity Climate Change FoF | Global | ₹83 crore |
| Baroda BNP Paribas Aqua FoF | Global | ₹50 crore |
| Invesco India Global Equity Income FoF | Global | ₹25 crore |
(Source: Value Research; Note: All funds except the first two are available for both SIP and lump-sum investments as of November 9, 2024.)
