International funds invest in companies outside India, most often in the United States. They let you own businesses that do not exist on Indian exchanges, and they move partly with the dollar, which can cushion a weak rupee.
Thematic funds concentrate on one idea: manufacturing, healthcare, public sector companies, digital. When the theme is in favour they can run far ahead of the market. When it is out of favour they fall further, and they can stay out of favour for years.
Both belong at the edge of a portfolio, not the centre. A small allocation adds something the core cannot. A large one turns your portfolio into a bet on one story.
Buzz Bite
Themes are seasoning, not the meal. Keep them small.
In this Flight
- Equity Funds
- Debt Funds
- Hybrid Funds
- Index Funds
- ELSS (Tax Saver) Funds
- Liquid Funds
- International & Thematic Funds
- Large Cap, Mid Cap & Small Cap