Top International Mutual Funds to Invest In India

International mutual funds are a way for Indian investors to access investment avenues beyond domestic markets. As the economies of the U.S, Europe and emerging countries continue to grow, global mutual funds help investors access top performing global companies like Apple, Microsoft, and Tesla.

In the following sections, we will define international funds, their relevance in investing, and some of the best international mutual funds for Indian investors in year 2025.

Understanding International Mutual Funds

International Mutual Funds are equity-oriented funds that invest in companies listed beyond Indian borders. These funds give investors a view of the developed and emerging markets of the world, thus capitalising on global economic growth.

To put it differently, when purchasing an international stock mutual fund, an investor's funds are placed into global leaders in technology, healthcare, finance and energy to name a few.

For example, an international mutual fund that tracks the NASDAQ 100 Index invests held interest in leading U.S. technology corporations like Amazon, Meta and Nvidia.

Understanding International Mutual Funds

When Indian investors put money in a global or international fund, fund houses:

1. Invest directly in stocks or ETFs.

2. Use a feeder fund which sends money to an international mutual fund.

An example is Nippon India U.S. Equity Opportunities Fund which invests in U.S. companies in multiple sectors. Motilal Oswal Nasdaq 100 Fund of Fund tracks the U.S. Nasdaq index using a feeder fund.

 

Different Kinds of International Mutual Funds

Type	Description
Country-Specific Funds	Invest in a single country, e.g., the U.S., Japan, or China.
Region-Based Funds	Focus on regions like Europe, Asia-Pacific, or Latin America.
Global Funds	Invest across multiple countries, including India.
Thematic/ Sectoral Funds	Focus on global sectors such as technology, healthcare, or energy.

 

Benefits of International Funds

Benefits of having international funds in your portfolio include

1. Global Diversification

Investors in India can diversify into new economies and industries like semiconductors, artificial intelligence, and electric vehicles.

2. Currency Advantage

Your investments will benefit when the Indian rupee depreciates against the U.S. dollar.

3. Reduced Risk in your Portfolio

Indian markets and global markets do not always move the same, which helps reduce risk.

4. Ownership of Future Innovation

Investors can own stock in big global companies like Google, Amazon, Microsoft, and Apple.

Best International Mutual Funds in 2025

Indian investors can look at these international mutual funds for global exposure and performance (along with global exposure and fund performance):-

Fund Name	Type	1-Year Return	3-Year CAGR	Investment Focus
Motilal Oswal Nasdaq 100 FOF	Feeder Fund	~42%	~16%	U.S. tech stocks
Franklin India Feeder – Franklin U.S. Opportunities Fund	Feeder Fund	~39%	~14%	U.S. growth companies
Edelweiss Greater China Equity Offshore Fund	Feeder Fund	~28%	~9%	China & Hong Kong equities
PGIM Global Equity Opportunities Fund	Direct Fund	~33%	~11%	Global diversified portfolio
Nippon India U.S. Equity Opportunities Fund	Direct Fund	~36%	~12%	U.S. large-cap companies
DSP World Mining Fund	Thematic	~22%	~8%	Global metal & mining stocks

(Source: AMFI, Value Research, Jan 2025)

These funds are ideal for investors looking to invest for the long term and tap into the potential of high-performing overseas markets.

Potential Risks of International Mutual Funds

These risks should be considered and examined carefully before investing in international mutual funds:

Geopolitical Risk: Instability in the performance of politically unstable countries can risk funds.

Expense Ratio: The Cost of the fund and transactions is influenced by overseas fund management.

Taxation: After three years, it is taxed like debt funds with LTCG in India.

Currency Risk: If the rupee appreciates against the dollar, returns from global funds may suffer.

 

Who Should Consider Global Mutual Funds?

International funds are designed for:-

• Investors who are looking for diversification from the Indian markets.

• Investors with long horizons (3–5 years or more) as these are considered long term.

• Investors who can tolerate the risk from currency fluctuations.

• Global sectors, including AI, electric vehicles, and cloud computing, are some of the best investment opportunities right now.

• Yet, for beginners, the ideal percentage of their total mutual fund portfolio to dedicate to global mutual funds should be 10–20%.

Investing in International Mutual Funds

Investing in international or global mutual funds is possible in 3 main ways:

1. Indian Mutual Fund Houses (Feeder Funds): For example, Motilal Oswal, Franklin Templeton.

2. Direct International Investment Platforms: Platforms include INDmoney, Groww, or Vested.

3. SIP or Lump Sum: Starting small and using Systematic Investment Plans (SIPs) will help you manage volatility.

Example of International Stock Mutual Fund Investment

Let's say you invest in the Motilal Oswal Nasdaq 100 Fund. For the purposes of this example, let's assume you invested ₹1,00,000 and the average annual return was 12%. Regardless of fund charges or currency exchange rates, your investment will increase to around ₹1,76,000 in five years.

 

 

Final Thoughts

International funds can provide a portfolio with a number of advantages, including increased diversification, protection against domestic slowdowns, and a global edge. India is still a market that is growing quickly, and investing in international mutual funds gives investors access to cutting-edge global sector investments.

Start with a modest investment, monitor your foreign fund's performance, and make sure you know how much risk you can tolerate. You can create an internationally diversified and balanced investment portfolio for the long-term growth of your wealth by investing in Indian and international mutual funds.

 

DISCLAIMER: This blog is NOT any buy or sell recommendation. No investment or trading advice is given. The content is purely for educational and information purposes only. Always consult your eligible financial advisor for investment-related decisions.