How have international mutual funds (IMFs) increased the international integration of capital markets among countries?

International mutual funds(IMFs) refers to those mutual funds which invest in securities of the foreign firms that are listed in the foreign markets. Basically, they could be described as funds which use feeder route in investing in a global fund which is existing, funds that invest in global markets directly, and fund of funds which invest in a number of funds in order to achieve international exposure.

IMFs play a great role in increasing integration of the capital markets among different nations. This is because, IMFs allow the investors to easily access foreign securities. This is possible due to the fact that a company which is sponsoring the IMF makes decisions on the portfolio and executes the transactions.