Given its exposure to international equity markets, the scheme can be used as a tool to diversify and hedge one's equity portfolio against adverse swings in the Indian market. But invest just a small percentage of your overall portfolio after making other investments

 A fundamental rule to equity investing says "never put all eggs in one basket", which holds true for diversification, not only across asset classes, but also geographies. Sundaram Global Advantage is a feeder fund that invests not in stocks but in other equity mutual funds in the international markets. These schemes are advised by global research agency Fundquest of the BNP Paribas Group. A cautious decision to concentrate only on emerging economies and avoid developed nations of the US, Europe and Japan from its investment sphere, right from the time of its launch in 2007, has so far helped Global Advantage outperform not only the Indian equities but also its benchmark — MSCI Emerging Markets Index, in the volatile times. However, investors should not look upon this scheme as a money spinner, but as a cushion to mitigate the portfolio risk for times like these when the Indian equity markets have turned out to be one of the worst performers in the global arena.