Indian investors have traditionally preferred domestic investments like equity Mutual Funds, fixed deposits, and Real Estate. But in today’s interconnected world, relying only on India’s growth story can be limiting. International Mutual Funds give you a chance to invest in global markets — from Silicon Valley’s tech giants like Apple and Microsoft to Europe’s luxury brands and Asia’s fast-growing economies.

With the Indian economy becoming more globalised and investors looking for smarter diversification, International Mutual Funds are emerging as an attractive option in 2025. This guide explains everything — meaning, benefits, risks, taxation, best-performing funds, and whether you should add them to your Portfolio.
International Mutual Funds are schemes that invest in companies outside India. Instead of buying foreign shares directly (which requires opening a global Trading Account and dealing with complex taxation), you can invest in such companies through Indian AMCs (Asset Management Companies).
Feeder Funds – Indian AMCs collect money from investors and channel it into an overseas fund. Example: Franklin India Feeder – Franklin U.S. Opportunities Fund.
fund of funds (FoFs) – A fund that invests in another international mutual fund, ETF, or index abroad.
Direct International Equity Funds – A few funds may directly buy foreign stocks (less common).
Putting all your money in India means your wealth depends solely on how the Indian economy performs. Global exposure spreads risk. For example, if Indian IT underperforms but U.S. tech thrives, international funds balance your portfolio.
Think about this: India doesn’t have companies like Apple, Tesla, Microsoft, Amazon, or NVIDIA listed on NSE/BSE. International funds give access to these global leaders.
If the Indian Rupee depreciates against the U.S. Dollar (which historically it has — from ₹45/USD in 2010 to ~₹83/USD in 2025), your international fund value rises in INR terms.
Global themes like Artificial Intelligence, Electric Vehicles, Green Energy, Biotechnology, and Semiconductors can be tapped into via such funds.
Different economies move differently. For instance, when India faced COVID shocks in 2020, U.S. tech rallied. This balance helps reduce Volatility.
Currency Fluctuations – A strong rupee may reduce your returns.
Geopolitical Risks – Wars, trade disputes, sanctions can affect global companies.
Regulatory Risks – India’s RBI and SEBI impose limits under the Liberalised Remittance Scheme (LRS).
Higher Expense Ratios – Because of fund-of-fund structures and foreign management costs.
Concentration Risk – Many funds are U.S.-centric; you may lack true global diversification.
With the permission of Reserve Bank of India (RBI), International Mutual Funds opened up in India in 2007. Each fund is allowed to get a corpus of USD 500 million.
International Mutual Funds follow a master-feeder structure. A master-feeder structure is a three-tier structure where investors place their money in the feeder fund which then invests in the master fund. The master fund then invests the money in the market. A feeder fund is based on-shore i.e. in India, whereas, the master fund is based off-shore (in a foreign geography like Luxembourg etc).
A master fund can have multiple feeder funds. For example,

There are certain things to be kept in mind while choosing a suitable fund.

Fund Selection Methodology used to find 9 funds
Fund NAV Net Assets (Cr) Min SIP Investment 3 MO (%) 6 MO (%) 1 YR (%) 3 YR (%) 5 YR (%) 2024 (%) DSP World Gold Fund Growth ₹41.2272
↑ 0.49 ₹1,421 500 34.5 47.3 75.7 44.7 16.3 15.9 DSP US Flexible Equity Fund Growth ₹73.5456
↑ 0.58 ₹1,000 500 12.4 40.2 33 23 19.5 17.8 Edelweiss Emerging Markets Opportunities Equity Off-shore Fund Growth ₹20.5829
↓ -0.08 ₹137 1,000 16.8 35 32.9 20.6 6.5 5.9 Edelweiss Europe Dynamic Equity Off-shore Fund Growth ₹25.8006
↑ 0.07 ₹147 1,000 5.5 16.5 31.6 24 18.8 5.4 Aditya Birla Sun Life International Equity Fund - Plan A Growth ₹46.056
↓ -0.01 ₹250 1,000 9.3 26 30.4 18.7 13.5 7.4 DSP World Mining Fund Growth ₹22.3084
↑ 0.32 ₹148 500 23.5 37.6 29.4 16.9 17.6 -8.1 Kotak Global Emerging Market Fund Growth ₹30.281
↓ -0.04 ₹116 1,000 15.7 34.3 28.9 21.1 9.6 5.9 DSP World Energy Fund Growth ₹23.1937
↑ 0.10 ₹98 500 14.8 43.1 27.3 15.9 16.4 -6.8 Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 28 Oct 25 Research Highlights & Commentary of 8 Funds showcased
Commentary DSP World Gold Fund DSP US Flexible Equity Fund Edelweiss Emerging Markets Opportunities Equity Off-shore Fund Edelweiss Europe Dynamic Equity Off-shore Fund Aditya Birla Sun Life International Equity Fund - Plan A DSP World Mining Fund Kotak Global Emerging Market Fund DSP World Energy Fund Point 1 Highest AUM (₹1,421 Cr). Top quartile AUM (₹1,000 Cr). Lower mid AUM (₹137 Cr). Lower mid AUM (₹147 Cr). Upper mid AUM (₹250 Cr). Upper mid AUM (₹148 Cr). Bottom quartile AUM (₹116 Cr). Bottom quartile AUM (₹98 Cr). Point 2 Oldest track record among peers (18 yrs). Established history (13+ yrs). Established history (11+ yrs). Established history (11+ yrs). Established history (18+ yrs). Established history (15+ yrs). Established history (18+ yrs). Established history (16+ yrs). Point 3 Rating: 3★ (top quartile). Top rated. Rating: 3★ (upper mid). Rating: 3★ (upper mid). Rating: 2★ (bottom quartile). Rating: 3★ (lower mid). Rating: 3★ (lower mid). Rating: 2★ (bottom quartile). Point 4 Risk profile: High. Risk profile: High. Risk profile: High. Risk profile: High. Risk profile: High. Risk profile: High. Risk profile: High. Risk profile: High. Point 5 5Y return: 16.34% (lower mid). 5Y return: 19.51% (top quartile). 5Y return: 6.45% (bottom quartile). 5Y return: 18.82% (top quartile). 5Y return: 13.48% (lower mid). 5Y return: 17.58% (upper mid). 5Y return: 9.64% (bottom quartile). 5Y return: 16.36% (upper mid). Point 6 3Y return: 44.72% (top quartile). 3Y return: 23.02% (upper mid). 3Y return: 20.63% (lower mid). 3Y return: 24.04% (top quartile). 3Y return: 18.66% (lower mid). 3Y return: 16.85% (bottom quartile). 3Y return: 21.08% (upper mid). 3Y return: 15.87% (bottom quartile). Point 7 1Y return: 75.74% (top quartile). 1Y return: 32.98% (top quartile). 1Y return: 32.91% (upper mid). 1Y return: 31.56% (upper mid). 1Y return: 30.40% (lower mid). 1Y return: 29.37% (lower mid). 1Y return: 28.88% (bottom quartile). 1Y return: 27.34% (bottom quartile). Point 8 Alpha: 3.15 (top quartile). Alpha: -2.48 (bottom quartile). Alpha: -2.83 (bottom quartile). Alpha: 0.00 (upper mid). Alpha: 3.25 (top quartile). Alpha: 0.00 (upper mid). Alpha: -1.03 (lower mid). Alpha: 0.00 (lower mid). Point 9 Sharpe: 1.80 (top quartile). Sharpe: 0.77 (lower mid). Sharpe: 0.94 (lower mid). Sharpe: 1.16 (upper mid). Sharpe: 1.27 (top quartile). Sharpe: 0.73 (bottom quartile). Sharpe: 1.08 (upper mid). Sharpe: 0.39 (bottom quartile). Point 10 Information ratio: -1.09 (lower mid). Information ratio: -0.62 (lower mid). Information ratio: -1.21 (bottom quartile). Information ratio: 0.00 (top quartile). Information ratio: -1.15 (bottom quartile). Information ratio: 0.00 (top quartile). Information ratio: -0.54 (upper mid). Information ratio: 0.00 (upper mid). DSP World Gold Fund
DSP US Flexible Equity Fund
Edelweiss Emerging Markets Opportunities Equity Off-shore Fund
Edelweiss Europe Dynamic Equity Off-shore Fund
Aditya Birla Sun Life International Equity Fund - Plan A
DSP World Mining Fund
Kotak Global Emerging Market Fund
DSP World Energy Fund
All the funds mentioned above are ideal, we are giving you detailed analysis of 4 funds.
"The primary investment objective of the Scheme is to seek capital appreciation by investing predominantly in units of MLIIF - WGF. The Scheme may, at the discretion of the Investment Manager, also invest in the units of other similar overseas mutual fund schemes, which may constitute a significant part of its corpus. The Scheme may also invest a certain portion of its corpus in money market securities and/or units of money market/liquid schemes of DSP Merrill Lynch Mutual Fund, in order to meet liquidity requirements from time to time. However, there is no assurance that the investment objective of the Scheme will be realized." Research Highlights for DSP World Gold Fund Below is the key information for DSP World Gold Fund Returns up to 1 year are on The primary investment objective of the Scheme is to seek capital appreciation by investing predominantly in units of BGF – USFEF. The Scheme may, at the discretion of the Investment Manager also invest in the units of other similar overseas mutual fund schemes, which may constitute a significant part of its corpus. The Scheme may also invest a certain portion of its corpus in money market securities and/or money market/liquid schemes of DSP BlackRock Mutual Fund, in order to meet liquidity requirements from time to time. However, there is no assurance that the investment objective of the Scheme will be realized. It shall be noted ‘similar overseas mutual fund schemes’ shall have investment objective, investment strategy and risk profile/consideration similar to those of BGF – USFEF. Research Highlights for DSP US Flexible Equity Fund Below is the key information for DSP US Flexible Equity Fund Returns up to 1 year are on The primary investment objective of the Scheme is to seek to provide long term capital growth by investing predominantly in the JPMorgan Funds - Emerging Markets Opportunities Fund, an equity fund which invests primarily in an aggressively managed portfolio of emerging market companies Research Highlights for Edelweiss Emerging Markets Opportunities Equity Off-shore Fund Below is the key information for Edelweiss Emerging Markets Opportunities Equity Off-shore Fund Returns up to 1 year are on The primary investment objective of the Scheme is to seek to provide long term capital growth by investing predominantly in the JPMorgan Funds - Europe Dynamic Fund, an equity fund which invests primarily in an aggressively managed portfolio of European companies. Research Highlights for Edelweiss Europe Dynamic Equity Off-shore Fund Below is the key information for Edelweiss Europe Dynamic Equity Off-shore Fund Returns up to 1 year are on 1. DSP World Gold Fund
DSP World Gold Fund
Growth Launch Date 14 Sep 07 NAV (28 Oct 25) ₹41.2272 ↑ 0.49 (1.20 %) Net Assets (Cr) ₹1,421 on 31 Aug 25 Category Equity - Global AMC DSP BlackRock Invmt Managers Pvt. Ltd. Rating ☆☆☆ Risk High Expense Ratio 1.41 Sharpe Ratio 1.8 Information Ratio -1.09 Alpha Ratio 3.15 Min Investment 1,000 Min SIP Investment 500 Exit Load 0-12 Months (1%),12 Months and above(NIL) Growth of 10,000 investment over the years.
Date Value 30 Sep 20 ₹10,000 30 Sep 21 ₹7,753 30 Sep 22 ₹6,406 30 Sep 23 ₹7,497 30 Sep 24 ₹10,968 30 Sep 25 ₹21,899 Returns for DSP World Gold Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 28 Oct 25 Duration Returns 1 Month -4.7% 3 Month 34.5% 6 Month 47.3% 1 Year 75.7% 3 Year 44.7% 5 Year 16.3% 10 Year 15 Year Since launch 8.1% Historical performance (Yearly) on absolute basis
Year Returns 2024 15.9% 2023 7% 2022 -7.7% 2021 -9% 2020 31.4% 2019 35.1% 2018 -10.7% 2017 -4% 2016 52.7% 2015 -18.5% Fund Manager information for DSP World Gold Fund
Name Since Tenure Jay Kothari 1 Mar 13 12.59 Yr. Data below for DSP World Gold Fund as on 31 Aug 25
Equity Sector Allocation
Sector Value Basic Materials 95.54% Asset Allocation
Asset Class Value Cash 1.83% Equity 95.6% Debt 0.01% Other 2.56% Top Securities Holdings / Portfolio
Name Holding Value Quantity BGF World Gold I2
Investment Fund | -76% ₹1,268 Cr 1,456,030
↓ -89,620 VanEck Gold Miners ETF
- | GDX23% ₹389 Cr 573,719 Treps / Reverse Repo Investments
CBLO/Reverse Repo | -1% ₹18 Cr Net Receivables/Payables
Net Current Assets | -0% ₹3 Cr 2. DSP US Flexible Equity Fund
DSP US Flexible Equity Fund
Growth Launch Date 3 Aug 12 NAV (28 Oct 25) ₹73.5456 ↑ 0.58 (0.80 %) Net Assets (Cr) ₹1,000 on 31 Aug 25 Category Equity - Global AMC DSP BlackRock Invmt Managers Pvt. Ltd. Rating ☆☆☆☆☆ Risk High Expense Ratio 1.55 Sharpe Ratio 0.77 Information Ratio -0.62 Alpha Ratio -2.48 Min Investment 1,000 Min SIP Investment 500 Exit Load 0-12 Months (1%),12 Months and above(NIL) Growth of 10,000 investment over the years.
Date Value 30 Sep 20 ₹10,000 30 Sep 21 ₹13,082 30 Sep 22 ₹12,159 30 Sep 23 ₹14,648 30 Sep 24 ₹18,122 30 Sep 25 ₹23,384 Returns for DSP US Flexible Equity Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 28 Oct 25 Duration Returns 1 Month 3.8% 3 Month 12.4% 6 Month 40.2% 1 Year 33% 3 Year 23% 5 Year 19.5% 10 Year 15 Year Since launch 16.3% Historical performance (Yearly) on absolute basis
Year Returns 2024 17.8% 2023 22% 2022 -5.9% 2021 24.2% 2020 22.6% 2019 27.5% 2018 -1.1% 2017 15.5% 2016 9.8% 2015 2.5% Fund Manager information for DSP US Flexible Equity Fund
Name Since Tenure Jay Kothari 1 Mar 13 12.59 Yr. Data below for DSP US Flexible Equity Fund as on 31 Aug 25
Equity Sector Allocation
Sector Value Technology 33.17% Financial Services 17.01% Communication Services 14.3% Health Care 10.86% Consumer Cyclical 10.4% Industrials 6.24% Basic Materials 3.03% Energy 2.54% Asset Allocation
Asset Class Value Cash 2.43% Equity 97.56% Debt 0.01% Top Securities Holdings / Portfolio
Name Holding Value Quantity BGF US Flexible Equity I2
Investment Fund | -99% ₹1,033 Cr 1,994,958
↓ -29,079 Treps / Reverse Repo Investments
CBLO/Reverse Repo | -1% ₹15 Cr Net Receivables/Payables
Net Current Assets | -0% -₹2 Cr 3. Edelweiss Emerging Markets Opportunities Equity Off-shore Fund
Edelweiss Emerging Markets Opportunities Equity Off-shore Fund
Growth Launch Date 7 Jul 14 NAV (28 Oct 25) ₹20.5829 ↓ -0.08 (-0.38 %) Net Assets (Cr) ₹137 on 31 Aug 25 Category Equity - Global AMC Edelweiss Asset Management Limited Rating ☆☆☆ Risk High Expense Ratio 1.04 Sharpe Ratio 0.94 Information Ratio -1.21 Alpha Ratio -2.83 Min Investment 5,000 Min SIP Investment 1,000 Exit Load 0-1 Years (1%),1 Years and above(NIL) Growth of 10,000 investment over the years.
Date Value 30 Sep 20 ₹10,000 30 Sep 21 ₹11,545 30 Sep 22 ₹8,355 30 Sep 23 ₹9,226 30 Sep 24 ₹11,093 30 Sep 25 ₹13,772 Returns for Edelweiss Emerging Markets Opportunities Equity Off-shore Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 28 Oct 25 Duration Returns 1 Month 6.1% 3 Month 16.8% 6 Month 35% 1 Year 32.9% 3 Year 20.6% 5 Year 6.5% 10 Year 15 Year Since launch 6.6% Historical performance (Yearly) on absolute basis
Year Returns 2024 5.9% 2023 5.5% 2022 -16.8% 2021 -5.9% 2020 21.7% 2019 25.1% 2018 -7.2% 2017 30% 2016 9.8% 2015 -14.3% Fund Manager information for Edelweiss Emerging Markets Opportunities Equity Off-shore Fund
Name Since Tenure Bhavesh Jain 9 Apr 18 7.48 Yr. Bharat Lahoti 1 Oct 21 4 Yr. Data below for Edelweiss Emerging Markets Opportunities Equity Off-shore Fund as on 31 Aug 25
Equity Sector Allocation
Sector Value Financial Services 26.88% Technology 24.89% Consumer Cyclical 15.64% Communication Services 12.05% Industrials 4.89% Energy 3.76% Consumer Defensive 2.43% Real Estate 1.91% Basic Materials 1.58% Health Care 1.21% Utility 0.91% Asset Allocation
Asset Class Value Cash 3.84% Equity 96.15% Debt 0.02% Top Securities Holdings / Portfolio
Name Holding Value Quantity JPM Emerging Mkts Opps I (acc) USD
Investment Fund | -97% ₹149 Cr 94,755 Clearing Corporation Of India Ltd.
CBLO/Reverse Repo | -3% ₹4 Cr Net Receivables/(Payables)
CBLO | -0% ₹0 Cr Accrued Interest
CBLO | -0% ₹0 Cr 4. Edelweiss Europe Dynamic Equity Off-shore Fund
Edelweiss Europe Dynamic Equity Off-shore Fund
Growth Launch Date 7 Feb 14 NAV (28 Oct 25) ₹25.8006 ↑ 0.07 (0.27 %) Net Assets (Cr) ₹147 on 31 Aug 25 Category Equity - Global AMC Edelweiss Asset Management Limited Rating ☆☆☆ Risk High Expense Ratio 1.39 Sharpe Ratio 1.16 Information Ratio 0 Alpha Ratio 0 Min Investment 5,000 Min SIP Investment 1,000 Exit Load 0-12 Months (1%),12 Months and above(NIL) Growth of 10,000 investment over the years.
Date Value 30 Sep 20 ₹10,000 30 Sep 21 ₹13,138 30 Sep 22 ₹10,880 30 Sep 23 ₹13,862 30 Sep 24 ₹17,510 30 Sep 25 ₹22,171 Returns for Edelweiss Europe Dynamic Equity Off-shore Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 28 Oct 25 Duration Returns 1 Month 2.5% 3 Month 5.5% 6 Month 16.5% 1 Year 31.6% 3 Year 24% 5 Year 18.8% 10 Year 15 Year Since launch 8.4% Historical performance (Yearly) on absolute basis
Year Returns 2024 5.4% 2023 17.3% 2022 -6% 2021 17% 2020 13.5% 2019 22.9% 2018 -12.2% 2017 12.5% 2016 -3.9% 2015 5.4% Fund Manager information for Edelweiss Europe Dynamic Equity Off-shore Fund
Name Since Tenure Bhavesh Jain 9 Apr 18 7.48 Yr. Bharat Lahoti 1 Oct 21 4 Yr. Data below for Edelweiss Europe Dynamic Equity Off-shore Fund as on 31 Aug 25
Equity Sector Allocation
Sector Value Financial Services 22.23% Industrials 16.88% Health Care 12.48% Technology 7.96% Energy 7.37% Consumer Defensive 6.65% Consumer Cyclical 5.6% Utility 4.3% Basic Materials 4.3% Communication Services 4.14% Asset Allocation
Asset Class Value Cash 8.04% Equity 91.89% Debt 0.07% Top Securities Holdings / Portfolio
Name Holding Value Quantity JPM Europe Dynamic I (acc) EUR
Investment Fund | -97% ₹154 Cr 271,733
↑ 7,069 Clearing Corporation Of India Ltd.
CBLO/Reverse Repo | -3% ₹6 Cr Net Receivables/(Payables)
CBLO | -0% ₹0 Cr Accrued Interest
CBLO | -0% ₹0 Cr
These invest in developing economies such as China, Brazil, South Korea, Taiwan and India. Emerging markets offer faster growth potential, young demographics and rising consumption — but also carry higher volatility and political risk. Examples: Franklin Asian Equity FoF, Kotak Global Emerging Market Fund.
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These invest in stable economies like the US, Japan and Europe. Developed markets tend to be more resilient during global uncertainty and provide access to global leaders (Apple, Microsoft, Toyota, Nestlé, etc.). Examples: Motilal Oswal S&P 500 Index FoF, Nippon India Japan Equity Fund.

Focused on one nation’s equity market. These are higher risk since all exposure is tied to a single economy, but can deliver strong returns if that market performs well. Examples: Kotak US Equity FoF, Mirae Asset China Advantage Fund.
Invest in commodities like gold, silver, energy or agriculture. They provide an inflation hedge and low correlation with equity. Examples: DSP World Gold Fund, Kotak Global Energy FoF.
Target a global theme — e.g., technology, healthcare, energy, real assets, or ESG. Broader than sector funds, thematic funds spread investments across multiple industries tied to the same theme. Examples: Edelweiss US Technology Equity FoF, L&T Global Real Assets Fund.
Geographic diversification — Over-concentration in any single economy raises risk; global fund spread it.
Access to global leaders & themes — Apple, Microsoft, Nvidia, Tesla, advanced semiconductor firms and global biotech companies are easier to access via international funds.
Currency hedge — If INR weakens vs USD, overseas investments gain in INR terms (on top of market returns).
Participation in long-term megatrends — AI, EVs, cloud, green energy and semiconductors have most depth outside India today.
Portfolio smoothing — Different economies and sectors often move out of sync, reducing portfolio volatility.
Common planner guidance for retail investors: 5–15% of total investible assets in international equities/FoFs. For more aggressive investors or HNIs who already have large domestic exposure, this can be higher. Keep the bulk in Indian equity + debt for local goals and stability. (This is a rule of thumb — adapt to risk appetite and Financial goals.)
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According to experts, an investor should have around 10-12% of the portfolio invested in international mutual funds. So with the basics covered now, start building up that portfolio with international mutual funds today.
International mutual funds are a convenient, regulated route for Indian investors to own global companies and themes. They provide diversification, access to non-Indian market leaders, and an effective currency hedge — but they come with tax, currency and theme-concentration risks. For most retail investors, a measured exposure (5–15%) combined with SIP discipline and a long-term view will work well.
A: Many international FoFs are treated as “specified mutual funds” under Section 50AA; units acquired on/after 1 April 2023 are typically taxed as short-term gains at slab rates. Check the AMC factsheet and AMFI guidance for specifics.
A: Yes — via international brokers (Vested, INDmoney, Hatch) or by Investing in India-domiciled FoFs/ETFs that replicate US ETFs. Direct purchases are subject to LRS limits and additional compliance.
A: Nasdaq is tech-heavy (higher growth, higher volatility). S&P 500 is broader and less concentrated. Choose based on risk tolerance and time horizon.
A: SEBI sets industry-level overseas headroom (historically adjustments in 2020/2021 and temporary pauses in 2022). AMCs may pause inflows if headroom is exhausted. Always check AMC notices.
Very good article I got all the required information.