{"id":1083,"date":"2024-04-22T09:49:14","date_gmt":"2024-04-22T09:49:14","guid":{"rendered":"https:\/\/jamawealth.com\/askguru\/?p=1083"},"modified":"2026-03-02T19:28:26","modified_gmt":"2026-03-02T19:28:26","slug":"why-do-international-funds-in-india-buy-units-of-other-funds-and-not-directly-buy-stocks-in-other-countries-e-g-dsp-us-flexible-equity-fund-that-invests-in-bgf-us-flexible-equity-fund","status":"publish","type":"post","link":"https:\/\/maxiomwealth.com\/askguru\/2024\/04\/22\/why-do-international-funds-in-india-buy-units-of-other-funds-and-not-directly-buy-stocks-in-other-countries-e-g-dsp-us-flexible-equity-fund-that-invests-in-bgf-us-flexible-equity-fund\/","title":{"rendered":"Why do international funds in India buy units of other funds and not directly buy stocks in other countries (e.g., DSP US Flexible Equity Fund that invests in BGF, US Flexible Equity Fund)?"},"content":{"rendered":"\n<p>Some of the mutual funds operating in India that invest abroad (we will call them international funds) prefer to invest in other funds that are already operational in those countries. This is a matter of convenience and legacy.<\/p>\n\n\n\n<p>Most of these funds already have an international tie up (DSP, Franklin) and it doesn&#8217;t make sense to replicate the stock picking setup (fund mangers, office etc). So it is convenient.<\/p>\n\n\n\n<p>There are some funds in India that do buy stocks.&nbsp;<a href=\"https:\/\/www.jama.co.in\/direct-mutual-funds\/parag-parikh-long-term-equity-fund\/best-equity-multi-cap-direct-plan-mutual-funds\/fund-702\/\" target=\"_blank\" rel=\"noreferrer noopener\">Parag Parikh Value Fund&nbsp;<\/a>is one such example.<\/p>\n\n\n\n<p><strong>Bottomline<\/strong>: It does make sense to invest abroad through an Indian mutual fund. Most successful foreign companies anyway derive a huge chunk of their revenues from other countries. So you get to participate in the best performing international companies by gaining exposure to such funds.<\/p>\n\n\n\n<p>Lastly, always invest in direct plans with trusted advisor. Do not fall for fully free platforms as you might end up being the product.<\/p>\n\n\n<!-- mw-cta-block -->\n\n<div class=\"mw-cta-block\" style=\"background:#EEF3FC;border-left:5px solid #1C52A0;padding:22px 26px 20px;margin:36px 0 24px;border-radius:0 10px 10px 0;\">\n  <p style=\"margin:0 0 4px;font-size:11px;font-weight:700;color:#276FC4;letter-spacing:1px;text-transform:uppercase;\">Maxiom Wealth \u2014 Free Tool<\/p>\n  <h3 style=\"margin:0 0 10px;font-size:19px;font-weight:700;color:#113E81;line-height:1.3;\">Is Your Mutual Fund Working Hard Enough?<\/h3>\n  <p style=\"margin:0 0 18px;color:#444;font-size:15px;line-height:1.65;\">Two funds with similar star ratings can deliver very different outcomes. Use our fund comparison tool to check if you&#8217;re in the right scheme for your risk profile and investment horizon.<\/p>\n  <a href=\"https:\/\/maxiomwealth.com\/resources\/calculators\/better-funds-checker\" style=\"display:inline-block;background:#1C52A0;color:#fff!important;padding:11px 22px;border-radius:6px;text-decoration:none;font-weight:600;font-size:14px;margin:0 10px 8px 0;\">Compare Funds \u2192<\/a>\n  <a href=\"https:\/\/maxiomwealth.com\/meeting\" style=\"display:inline-block;border:2px solid #1C52A0;color:#1C52A0!important;padding:9px 22px;border-radius:6px;text-decoration:none;font-weight:600;font-size:14px;margin-bottom:8px;\">Talk to a Financial Advisor<\/a>\n<\/div>\n\n","protected":false},"excerpt":{"rendered":"<p>Some of the mutual funds operating in India that invest abroad (we will call them international funds) prefer to invest in other funds that are already operational in those countries. This is a matter of convenience and legacy. Most of these funds already have an international tie up (DSP, Franklin) and it doesn&#8217;t make sense&hellip;&nbsp;<a href=\"https:\/\/maxiomwealth.com\/askguru\/2024\/04\/22\/why-do-international-funds-in-india-buy-units-of-other-funds-and-not-directly-buy-stocks-in-other-countries-e-g-dsp-us-flexible-equity-fund-that-invests-in-bgf-us-flexible-equity-fund\/\" class=\"\" rel=\"bookmark\">Read More &raquo;<span class=\"screen-reader-text\">Why do international funds in India buy units of other funds and not directly buy stocks in other countries (e.g., DSP US Flexible Equity Fund that invests in BGF, US Flexible Equity Fund)?<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[197,38],"tags":[],"class_list":["post-1083","post","type-post","status-publish","format-standard","hentry","category-international-funds","category-mutual-funds"],"_links":{"self":[{"href":"https:\/\/maxiomwealth.com\/askguru\/wp-json\/wp\/v2\/posts\/1083","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/maxiomwealth.com\/askguru\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/maxiomwealth.com\/askguru\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/maxiomwealth.com\/askguru\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/maxiomwealth.com\/askguru\/wp-json\/wp\/v2\/comments?post=1083"}],"version-history":[{"count":1,"href":"https:\/\/maxiomwealth.com\/askguru\/wp-json\/wp\/v2\/posts\/1083\/revisions"}],"predecessor-version":[{"id":3679,"href":"https:\/\/maxiomwealth.com\/askguru\/wp-json\/wp\/v2\/posts\/1083\/revisions\/3679"}],"wp:attachment":[{"href":"https:\/\/maxiomwealth.com\/askguru\/wp-json\/wp\/v2\/media?parent=1083"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/maxiomwealth.com\/askguru\/wp-json\/wp\/v2\/categories?post=1083"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/maxiomwealth.com\/askguru\/wp-json\/wp\/v2\/tags?post=1083"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}