Best International Mutual Funds in India

International Funds are a type of equity fund that invests in stocks of companies listed outside India. These funds give you the chance to invest in some of the world's biggest and most innovative top-notch companies. 

Tap into opportunities in global giants and emerging markets for higher returns. Ready to expand your financial horizons? Below is the list of the best international mutual funds in India. Scroll Down!
 

List of International Mutual Funds in India

Disclaimer: The information provided on the above stocks is for informational purposes only. It is crucial to conduct thorough research before making any investment decisions regarding these stocks. We do not recommend trading any stocks without comprehensive research and professional financial advice. Always consult with a certified financial advisor to ensure informed and appropriate investment choices. 
 

An Overview: Best International Mutual Funds In India

Motilal Oswal Nasdaq 100 FOF Direct – Growth

This fund aims to provide long-term capital appreciation by investing in the Nasdaq-100 index, which includes top US technology and innovation-driven companies. It offers exposure to sectors like technology, healthcare, and consumer discretionary. The focus is on high-growth stocks with global market potential.

PGIM India Global Equity Opportunities Fund Direct-Growth

This fund invests in a diversified portfolio of global equity securities, primarily in developed markets, with a focus on high-growth sectors. It seeks to generate long-term capital growth by investing in companies that have strong growth potential. It offers exposure to global investment opportunities.

Franklin India Feeder Franklin US Opportunities Fund Direct-Growth

This fund invests in the Franklin US Opportunities Fund, which focuses on equity investments in US companies with high growth potential. The fund seeks to capitalize on long-term growth trends in the US economy. It offers exposure to large-cap US stocks, including technology, healthcare, and consumer sectors.

DSP US Flexible Equity Fund Of Fund - Direct Plan-Growth

The DSP US Flexible Equity Fund invests in the underlying US equity fund, aiming for capital growth by investing in large-cap US companies across various sectors. It provides flexibility in allocation, focusing on long-term growth opportunities in the US equity market. The strategy involves both growth and value stocks.

Invesco India - Invesco Global Equity Income FoF Fund Direct-Growth

This fund seeks to invest in global equity income strategies that focus on generating income through dividends and capital appreciation. It invests in international equity funds, including high-dividend-yielding stocks in developed markets. Its objective is to provide long-term growth with a stable income stream.

Sundaram Global Brand Fund Direct-Growth

The fund focuses on investing in global brand-driven companies that have a strong market presence and potential for long-term growth. It invests in multinational companies with established brand recognition across sectors like consumer goods, technology, and healthcare. The goal is capital appreciation by tapping into global consumer trends.

Aditya Birla Sun Life Global Emerging Opportunities Fund Direct Plan-Growth

This fund invests in emerging market equities, targeting companies with high growth potential in developing countries. It aims to capitalize on the growth stories in regions like Asia, Latin America, and Africa. The focus is on capital appreciation through investments in emerging economies.

Edelweiss US Value Equity Offshore Fund Direct-Growth

This fund primarily invests in undervalued US companies, aiming for long-term capital appreciation by focusing on value stocks. It selects stocks with strong fundamentals that are trading below intrinsic value, particularly in the US market. The fund targets a contrarian approach to investing in US equities.

DSP World Mining Fund - Direct Plan-Growth

The fund invests in global mining and resource companies across various commodities, including precious metals, base metals, and energy. It aims to provide long-term capital appreciation by investing in companies that benefit from the growth in global commodity demand. The focus is on the mining sector's global opportunities.

Edelweiss Europe Dynamic Equity Offshore Fund Direct-Growth

This fund invests in European equities with a dynamic approach, focusing on growth opportunities across various sectors. It aims to generate capital appreciation by selecting high-potential European companies. The fund’s strategy is to capture growth trends in the European market while managing risk.
 

Advantages of Investing in the International Mutual Funds In India

Investing in the best international mutual funds in India can offer several benefits. Below are five key advantages:

1. Diversification of Investments
   Investing in international mutual funds allows you to spread your investments across global markets, not just Indian stocks. This diversification can reduce the overall risk of your portfolio. If the Indian market faces difficulties, the performance of international markets may help balance your losses.
2. Access to Global Growth
   Many international markets, especially in developed countries like the U.S. or emerging markets, offer higher growth potential than India's. By investing in these markets, you can benefit from industries or sectors growing faster or innovating in ways that aren’t as common in India.
3. Hedge Against Currency Risk
   When you invest in international funds, you gain exposure to foreign currencies. If the value of the Indian rupee falls against other currencies, like the U.S. Dollar or Euro, your international investments can act as a hedge and help protect your portfolio’s value.
4. Access to World-Class Companies
   Some of the world’s most successful and innovative companies, such as Apple, Amazon, or Tesla, are unavailable on the Indian stock market. By investing in international mutual funds, you can indirectly invest in these global giants and benefit from their success.
5. Reduced Market Correlation
   Local economic factors, like government policies or domestic events, can sometimes influence the Indian market. International mutual funds can be less affected by these, offering a safer investment during periods of uncertainty in India. This reduces the risk of your investments being too closely tied to India's economy.

Risks Associated with the International Mutual Funds in India

Below are five key risks associated with investing in international mutual funds in India:

Currency Risk (Exchange Rate Risk)
Since international mutual funds invest in foreign assets, any changes in the value of the Indian Rupee (INR) against foreign currencies can impact the returns. If the rupee weakens, your investment might lose value when converted back to INR.

Market Risk (Volatility)
International markets can be more volatile than Indian markets due to political instability, economic conditions, or natural disasters in those countries. This can lead to sudden price fluctuations in your investment.

Geopolitical Risk
Investing in foreign countries exposes you to geopolitical risks like war, trade tensions, or government policies that may negatively impact the market or specific sectors in those countries.

Regulatory Risk
Different countries have different rules and regulations. Changes in foreign laws, tax policies, or investment norms can affect the performance of international mutual funds and make them riskier for investors.

Liquidity Risk
Some international markets may have lower liquidity, meaning it may be harder to buy or sell assets quickly without affecting the price. This can make it difficult to access your investment when you need it.
 

How to Choose International Mutual Funds in India?

Choosing the right international mutual fund in India can be a bit tricky, however, the below information will help you make the right informed decision:

1. Understand Your Investment Goals
   Before choosing an international mutual fund, ask yourself why you want to invest in foreign markets. Is it for diversification, long-term growth, or to take advantage of global trends? Make sure the fund aligns with your financial goals.
2. Check the Fund’s Global Exposure
   Different international funds invest in different regions or sectors, such as the US, Europe, or emerging markets. Look for a fund that fits the regions or sectors you're interested in. Some funds focus on developed countries, while others invest in high-growth emerging markets.
3. Review the Fund’s Performance History
   While past performance isn’t always a guarantee of future returns, it can give you an idea of how the fund has performed during various market cycles. Compare its returns to similar funds and global indices to gauge its consistency.
4. Look at Costs and Fees
   International mutual funds often have higher management fees due to global exposure and currency-related costs. Check the Expense Ratio and any other associated charges, such as entry and exit loads, to make sure they are reasonable and don't eat into your returns.
5. Consider the Fund Manager’s Expertise
   The experience and expertise of the fund manager can significantly impact the fund’s performance. Choose a fund managed by a professional with a strong track record in handling international investments and navigating global markets.

Who Can Invest in the International Mutual Funds in India?

Anyone who meets the following criteria can invest in International Mutual Funds in India:

Indian Resident Investors: Individuals who are Indian citizens or residents, including NRIs (Non-Resident Indians), can invest in international mutual funds, provided they meet the KYC (Know Your Customer) requirements.

KYC Compliance: To invest, investors must complete the KYC process, which involves submitting identification documents, proof of address, and a photograph. This process is mandatory for all mutual fund investors.

Through Indian Fund Houses: Indian mutual fund companies offer international funds that invest in global markets. You can invest in these funds through Indian AMCs (Asset Management Companies) such as SBI, HDFC, or ICICI.

SEBI Approval: International mutual funds must be approved by the Securities and Exchange Board of India (SEBI) and are typically regulated by the Reserve Bank of India (RBI) if they involve foreign investments.

Conclusion
Opting for the best international mutual funds in India presents a promising opportunity for investors looking for diversification and exposure to the global market. Before investing in these funds, it is important to understand the risks involved in them like geopolitical risks, and currency fluctuations. By making well-informed choices, investors can potentially capitalize on the attractive returns provided by these funds.