There are a lot of strong companies all over the world. An investor can get the benefit from the stocks of such strong companies around the world through global mutual funds. These funds invest the pooled money of investors in stocks and other financial products of companies in North America, Europe and Asia etc. Normally developed countries allow investors from all over the world to invest in their countries. They have various investment schemes and financial products to attract worldwide investors.
Global Balanced Funds: Global balanced funds invest money in stocks and various secured financial products all over the world. A part of its fund invests in bond markets in Asia, North America, and Europe etc. Even if the return from global balanced funds are comparatively less than global equity funds, but the possibility of getting a steady return is there. The risk involved in such global balanced fund is less, and for a long period, it can offer a steady growth or dividend. Bonds are low risk financial products and a substantial part of money from such global balanced funds invest in bonds only.
Global equity Funds: Global equity funds are similar to other equity mutual funds and the main difference is that here the pooled money of investors invest in stock exchanges, in different countries, including developed countries. The investor can get the benefit of diversification of investment in various companies in his own country and abroad. This is an excellent example of investment diversification. The investor gets a chance to diversify his investments through professional and qualified fund managers. Even though, the stock market is volatile nature and the risk of getting loss is extremely high as per other equity funds.
With global mutual fund, the investor gets a chance of trying his investments all over the world and can harvest worldwide, but remember that an investor should take all precautions as he invests in other mutual funds. The risk possibility is extremely high and analyzes the product thoroughly before investing. AGF International Value Fund, BPI Global Equity Fund and Fidelity International Portfolio Fund are some examples of
Global mutual funds
Know your funds before you go ahead and invest
New Issue of Fixed Maturity Plans (FMPs)
Mutual Fund Guide, a comical cartoon presentation