Many international mutual funds are in red. Are they still good for diversification?

The international mutual fund category is offering negative returns in the short-term. The category has returned -4.90 per cent in one month, -2.60 per cent in three months and -2.77 per cent in one year. Many schemes are showing negative double-digit loss. Kotak Global Emerging Market Fund has returned -14.16 per cent in one year and Edelweiss Greater China Equity Off-shore Fund has offered -13.81 per cent in a year. Market experts attribute the poor show by the category to the global trade war, Brexit, depreciating currencies across globe, and fear of global economic slowdown. As a result of the poor performance, these schemes are not proving to be a good diversification option for many Indian investors. 

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