Best International Mutual Funds in India

A mutual fund that invests in foreign stocks is an international mutual fund and the average return given by these funds last year was 22.58%. This great performance shows the potential of international mutual funds as an investment option. By diversifying beyond the domestic market, Indian investors can tap into the growth dynamics of various global economies. There are many investment options offered by international mutual funds and in this blog, we will explore the best international mutual funds in India.
 

What are International Mutual Funds?

International mutual funds refer to investment options where money is collected from many people and then invested in stocks from different countries outside India. These international mutual funds aim to provide investors with access to global markets and sectors that might be hard to reach through investments in India.
 

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List of Best International Mutual Funds in India 2024 

The following is the list of best international mutual funds in India:

Disclaimer— All the above information is accurate as of 21st June 2024. However, prior research is to be conducted before making any investment decisions in these stocks.
 

Overview of Best International Mutual Funds

Following is the overview of the best international mutual funds in India:

ICICI Prudential US Bluechip Equity Fund

This fund was launched on Jul 06, 2012. The investment objective of ICICI Prudential US Bluechip Equity Fund is to provide long-term capital appreciation to investors by primarily investing in equity and equity-related securities of companies listed on recognized stock exchanges in the United States of America.

• The ICICI Prudential US Bluechip Equity Fund currently holds Assets under Management worth Rs 3052 crore 
• The minimum investment required is Rs 5000
• The minimum additional investment is Rs 1000
• The minimum SIP investment is Rs 100

Parag Parikh Flexi Cap Fund

The Parag Parikh Flexi Cap Fund is a diversified equity scheme that was launched on 10th October 2012 by the PPFAS mutual fund. The scheme aims to achieve long-term capital appreciation by investing primarily in equity and equity-related instruments.

• The Parag Parikh Flexi Cap Fund  currently holds Assets under Management worth Rs 66,384 crore
• The minimum investment required is Rs 1000
• The minimum additional investment is Rs 1000
• The minimum SIP investment is Rs 1000

Mirae Asset S&P 500 Top 50 ETF Fund of Fund

The fund was launched on Sep 22, 2021, and the scheme seeks to provide long-term capital appreciation from a portfolio investing predominantly in units of Mirae Asset S&P 500 Top 50 ETF.

• The Mirae Asset S&P 500 Top 50 ETF FoF - Regular Plan currently holds assets under management worth Rs 542 crore as on 31st March 2024 
• Mirae Asset S&P 500 Top 50 ETF FoF Direct - growth returns of last 1-year are 37.43%
• Since the launch, it delivered 17.99% average annual returns

The Motilal Oswal Nasdaq 100 FOF

The fund was launched on Nov 29, 2018, and the scheme seeks returns by investing in units of Motilal Oswal Nasdaq 100 ETF. The asset allocation of the fund comprises around 99.86% in equities, 0.13% in debts, and 0.01% in cash & cash equivalents.

• Motilal Oswal Nasdaq 100 FOF currently hold assets under management worth Rs 4624.61 crore as of Apr 30, 2024
• The minimum investment required is Rs 500 
• The minimum additional investment is Rs 500
• The minimum SIP investment is Rs 500
• Motilal Oswal Nasdaq 100 FOF - Regular Plan shall attract an Exit Load, Exit load of 1% if redeemed within 15 days.

Kotak Global Emerging Market Fund

The fund was launched on Sep 26, 2007, and the scheme aims to invest a greater proportion of assets in overseas mutual funds investing in globally emerging markets funds. 

• Kotak Global Emerging Market Fund currently hold assets under management worth Rs 92 crore as of Apr 30, 2024
• Kotak Global Emerging Market Fund Direct last 1 year growth returns are 12.84%
• Since its launch, the company has delivered 6.04% average annual returns

DSP World Energy Fund

The fund was launched on Aug 14, 2009, and it is benchmarked against MSCI World Energy's 30% Buffer 10/40 Net Total Return. The asset allocation of the fund comprises around 98.79% in equities, 0.0% in debts, and 1.21% in cash & cash equivalents.

• Kotak Global Emerging Market Fund currently hold assets under management worth Rs 141 crore as of Apr 30, 2024
• The minimum investment required is Rs 100 
• The minimum additional investment is Rs 100
• The minimum SIP investment is Rs 100
   

Factors to Consider Before Investing in Best International Mutual Funds

The following are the factors to consider before investing in the best international mutual funds in India:

• Geographical risks: The risks related to geopolitics can have a major impact on your returns when you invest in the international market. Political instability, changes in governmental regulations, and international hostilities can impact the performance of international funds. 
• Economic conditions: It is essential for the country in which investments are made to exhibit economic stability and growth potential. While economic growth can lead to an increase in stock prices and corporate profits, economic downturns may result in a decline in both. 
• Currency risk: The performance of international funds can be impacted by fluctuations in the exchange rates. The value of the foreign currency may fall relative to the Indian Rupee, thereby reducing your investment returns and vice versa. 
• Regulatory Environment: It is important to understand the environmental regulations of the country where you have made investments. These rules and regulations directly affect market operations, corporate governance, and investor protection.
   

Who Would Want to Invest in International Mutual Funds?

International mutual funds can be an attractive option for investors looking to diversify their portfolios and handle the risks associated with the domestic market. These funds also present an opportunity for those looking to capitalise on growth prospects in both emerging and established markets outside of India. Moreover, investors with a long-term growth mindset and a willingness to assume higher risks in pursuit of potentially higher returns may find these funds appealing. Additionally, for those seeking stability in market fluctuations, international mutual funds may offer a lower level of volatility.
 

Benefits of Investing in the Best International Mutual Funds in India

The following are the benefits of investing in the best mutual funds in India:

1. Diversification
   For an effective investment strategy diversification plays an important role because it distributes the investments among different markets and assets to lower the risk. Investors can diversify their portfolios globally by investing in international mutual funds. 
2. Currency Diversification
   Currency Diversification is another important advantage of investing in the best international mutual funds because with favourable currency exchange rates the value of an investor's holdings can be positively impacted. 
3. Possibility of Higher Returns 
   Compared to only investing in domestic markets, investing in international markets can offer higher returns because investors can easily take advantage of different growth rates, economic cycles, and market conditions.
4. Portfolio Stability
   Investment in international mutual funds helps in balancing the impact of market instability. The overall instability of a portfolio can be reduced as different markets around the world often move independently of one another. 
    

Conclusion
In 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 capitalise on the attractive returns provided by these funds. By using a reliable stock market app you can further make informed decisions and with this app, you can stay updated on market trends and track your investments easily.