WithHang Sengindex down by nearly 13% today and similarly fund based on the index also in red in the same period, an expert is of the view that the implementation of reciprocal tariffs by PresidentTrumphas reignited global trade tensions, creating fresh uncertainty across equity markets worldwide.International funds, particularly those with exposure to export-oriented economies, are experiencing heightened volatility.

“Countries such as China, Vietnam, Taiwan, South Korea, and Indonesia —known for maintaining higher trade barriers against U.S. goods—are likely to see pressure on their export growth and overall market sentiment. Key sectors such as automobiles, electronics, and manufacturing, which rely heavily on global supply chains, are expected to be most affected. Meanwhile, the U.S. economy is also facing headwinds, as rising input costs and retaliatory actions from trade partners begin to weigh on corporate margins and broader market performance,” he added.

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According to Reuters,Hong Kongand Chinese stocks dived on Monday after Beijing fired back at U.S. tariffs with its own trade levies, sowing more turmoil in financial markets as investors feared a widening trade war would unleash a deep recession.

Mirae Asset Hang Seng TECH ETF FoF, the fund based on Hang Seng index, is down by nearly 12.75% today, according to the data on NSE. The fund losses more than the index when down and vice versa.

The Hang Seng index went down by nearly 2.46% in the last one week and by 3.54% in the last two weeks. It lost around 6.23% in the last one month. The fund based on the index lost around 12.21% in the last two weeks and by around 13.20% in the last one month.

The experts recommend that although the fund has seen a 10–12% correction recently, investors should be careful not to get carried away or make aggressive allocations.

“The fund remains prone to sharp ups and downs due to volatility and geopolitical risks. History shows that quick rebounds after deep falls don’t always hold up over time. Only investors with a high-risk appetite and a long-term horizon of over 5 years should consider a small tactical allocation of 5–7%. It is best treated as a satellite holding to diversify into global tech themes, and should be balanced with more stable core investments to keep overall portfolio risk in check.” She added.

Two China based funds – Axis Greater China Equity FoF and Edelweiss Gr China Equity Off-Shore Fund – have lost around 5% each in the last one week. In the last one week, the international funds have dropped by upto 13%. Out of 65 international funds, around 61 have offered negative returns in the same period and four have delivered positive returns.

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Invesco India – Invesco Global Consumer Trends FoF and ICICI Pru Strategic Metal and Energy Equity FoF lost around 13.35% and 11.92% in the last one week.

With the majority of international funds in the red, the expert shares that the outlook for international funds has turned cautious considering renewed tariff risks and with both emerging and developed markets facing external headwinds, investors should expect higher volatility and uneven performance across regions.

“However, this environment also rewards selectivity — funds that are diversified across regions and sectors, or are actively managed with tactical flexibility, may be better positioned. Overall, a balanced allocation between U.S. and international funds, with an emphasis on regions less vulnerable to U.S. trade policy, could be a prudent strategy until the global trade landscape becomes clearer. Given the current backdrop, caution continues to define the near-term outlook for international funds,” Shinde added.