1. Opt for pure international funds because the calculation of asset allocation is easier.
2. Don't opt for mixed funds, which invest bulk in Indian equity to get better tax treatment, because you will have to invest much more to get the same global exposure.
3. Avoid thematic or sectoral global funds that focus on commodities, energy and agriculture exclusively.
4. Restrict your exposure to about 20% of your equity portfolio (depending on your risk appetite), investing 10% in the developed markets (chiefly USA) and the balance in the emerging markets.
5. As these funds are subject to dual volatility risk - equity market and currency swings - invest through SIP route to avail rupee cost averaging.
6. Be patient and avoid selling them when Indian markets are performing better in certain periods.
2. Don't opt for mixed funds, which invest bulk in Indian equity to get better tax treatment, because you will have to invest much more to get the same global exposure.
3. Avoid thematic or sectoral global funds that focus on commodities, energy and agriculture exclusively.
4. Restrict your exposure to about 20% of your equity portfolio (depending on your risk appetite), investing 10% in the developed markets (chiefly USA) and the balance in the emerging markets.
5. As these funds are subject to dual volatility risk - equity market and currency swings - invest through SIP route to avail rupee cost averaging.
6. Be patient and avoid selling them when Indian markets are performing better in certain periods.