Net inflows in equity mutual funds see a 95% fall in June compared to previous months because of the recent rebound in the market which forced investors to pull back all of their money and stay on the sidelines. The Equity mutual fund schemes scored lowest monthly flows in four years of Rs 240 crore in the month of June comparing against Rs 5,246 of May.
In the current market situation this question has been rising above the ground – Which fund should investors bet first on Indian or foreign markets? Many of the point of view that market all over the world are so much turmoil, should not be it a good opportunity to go for international funds?
A Fund of Funds (FoF) usually invests its assets in mutual fund schemes. A regular mutual fund or scheme generally takes money from investors and invest it in equities, debt based on its mandate. On the other hand Fund of Fund or FoF takes money from the investors and invests it in other mutual fund schemes. These mutual fund schemes can belong to other fund houses or withing the fund house.
Offshore funds are mutual funds schemes that invest in foreign markets. Offshore funds are also known as international funds. These schemes invest in fixed income securities or equities of a foreign country or region.