International mutual funds help Indian investors diversify their portfolio by giving them the opportunity to invest outside their home market. Are you curious to invest in global mutual funds in India? Well, it would help if you have a clear idea about how they work, the benefits, and what to look out for. In this blog post, we provide you an overview of the 10 best international mutual funds that you can invest in 2024. Let’s get started.
What are international mutual funds?
International mutual funds, by definition, are equity funds that invest in stocks that trade on foreign stock exchanges. However, several Indian mutual funds invest in Indian stocks as well besides investing in foreign stocks. Essentially, they pool money from investors to invest it in international stocks or ETFs. Along with prospects of significant growth, international mutual funds provide individuals exposure to markets outside India.
How do international mutual funds work?
International mutual funds primarily invest in stocks, bonds, or ETFs. The aim of investing in international mutual funds is to get exposure to overseas economies and their growth story. The main difference between international mutual funds and domestic mutual funds is in their area of operation. International mutual funds work by hiring expert fund managers who can regularly monitor and analyze stocks across the world to choose the most preferable ones for investment. They can choose the funds based on the regional perspective like funds specific to a specific foreign country or continent or based on their business areas like IT or infrastructure. Based on their investment mandate, international mutual funds are broadly categorized into three groups: country-specific funds, sectoral funds, and global funds.
Overview of the top 10 best international mutual funds to invest in 2024
Here is a brief overview of the best international mutual funds in India as of 2024. They are arranged according to assets under management (AUM).
| Serial No | Mutual Fund | AUM (in Rs. Cr.) |
| 1 | Parag Parikh Flexi Cap Fund | ₹82,441.07 |
| 2 | Motilal Oswal Nasdaq 100 FOF Scheme | ₹5,035 |
| 3 | Franklin US Opportunities Fund | ₹3,565 |
| 4 | ICICI Pru US Bluechip Equity Fund | ₹3,336 |
| 5 | Edelweiss US Technology | ₹2,251 |
| 6 | PGIM India Global Equity | ₹1,352 |
| 7 | Mirae Asset S&P 500 Top 50 ETF | ₹762.73 |
| 8 | Nippon India Japan Equity Fund | ₹273 |
| 9 | Kotak Global Emerging Market Fund | ₹93 |
| 10 | Invesco Global Equity Income FoF | ₹25 |
Here is a brief overview of these international mutual funds for you.
Parag Parikh Flexi Cap Fund
Formerly known as Parag Parikh Long-Term Equity Fund, the Flexi Cap Fund is one of only a handful of Indian mutual fund schemes to invest in a basket of Indian and foreign stocks.
Motilal Oswal Nasdaq 100 FOF Scheme
Launched on Nov. 9, 2018, this is an international mutual fund scheme from Motilal Oswal Mutual Fund. It is a medium-sized fund in its category.
Franklin US Opportunities Fund
Franklin India Feeder fund was launched on Jan. 1, 2013. This is an international mutual fund from Franklin Franklin Templeton Mutual Fund.
ICICI Pru US Bluechip Equity Fund
The fund belongs to the international category of funds from ICICI Prudential Mutual Fund.
Edelweiss US Technology Equity FoF
The fund from the Edelweiss Group was launched on Feb. 14, 2020.
PGIM India Global Equity Opportunities Fund
PGIM India Global Equity Opportunities Fund belongs to the category of international mutual funds from the fund house of PGIM India Mutual Fund.
Mirae Asset S&P 500 Top 50 ETF
The fund invests mainly in shares of foreign companies. The fund provides exposure to 50 bluest of the blue-chip US mega-cap companies.
Nippon India Japan Equity Fund
This is an international mutual fund scheme from Nippon India Mutual Fund. Launched on Aug. 8, 2014, the fund belongs to the category of medium-sized funds.
Kotak Global Emerging Market Fund
Launched on Jan. 1, 2013, this scheme is an international mutual fund scheme from Kotak Mahindra Mutual Fund.
Invesco Global Equity Income FoF
Launched on April 15, 2014, this fund is an international mutual fund scheme from Invesco Mutual Fund.
Performance record of best international mutual funds
| Fund Name | 1-year returns (%) | 3-year returns (%) | 5-year returns (%) |
| Parag Parikh Flexi Cap Fund | 39.07 | 17.35 | 26.55 |
| Motilal Oswal Nasdaq 100 FOF Scheme | 40.64 | 13.27 | 24.3 |
| Franklin US Opportunities Fund | 48.53 | 6.82 | 19.16 |
| ICICI Pru US Bluechip Equity Fund | 33.05 | 12.45 | 17.8 |
| Edelweiss US Technology | 46.19 | 7.19 | — |
| PGIM India Global Equity | 44.29 | 4.51 | 19.72 |
| Mirae Asset S&P 500 Top 50 ETF | — | — | — |
| Nippon India Japan Equity Fund | – | — | —- |
| Kotak Global Emerging Market Fund | — | — | —- |
| Invesco Global Equity Income FoF | 35.66 | 13.99 | 15.65 |
Returns as of Oct. 22, 2024
How to find the best international mutual funds?
To find the best foreign mutual funds, you will have to follow some guidelines such as:
- Defining your financial goals and risk-taking ability
- Evaluate the investment plans and stock composition of the fund
- Examining the track record of the fund
- Analyzing the performance of the executive team and fund manager
Why should you invest in international mutual funds?
There are several reasons supporting investing in international equity mutual funds. These are:
- Help in diversifying your portfolio beyond local stocks
- Accessing global opportunities for growth
- Getting aid from the professional management team, their knowledge and expertise
- Gaining a greater potential return
- Reduce currency risksÂ
Benefits of investing in the best international mutual funds in India
The benefits of investing in international mutual funds are manifold.
- Access to the global market: By making international investments, Indian investors get exposure to overseas stock markets. They can thus leverage profit from the growth of industries across the globe.
- Exposure to innovative companies: International mutual funds often focus on investing in innovative foreign companies.
- Reduce currency risks: As foreign investments will be made in foreign currencies, these investments will protect you against the depreciation of the Indian rupee against USD and other foreign currencies.Â
Things to consider before investing in best international mutual funds
International stocks are subject to market risks. Hence, you should consider factors such as:
- Currency fluctuations can cut both ways, sometimes to your disadvantage.
- The processing and management fees of international mutual funds are much higher
- The international market can be more volatile than the local market.
- Taxation also varies greatly from India Â
- Changes in the legal and political dynamics of foreign countries can drastically impact share prices.
How can you invest in international mutual funds from India?
To invest in international funds, follow these steps:
- Open a demat and trade account
- Complete the KYC with a trusted investment partner which is licensed to invest in foreign markets/stocks
- Select the international mutual funds you want to invest in
- Transfer money from your bank account to the demat account
- Invest in the chosen funds
- Monitor your funds regularly
Conclusion
Investing in international mutual funds enables you to partake of the economic growth of overseas economies. There is a wide range of foreign investments available for Indian investors in 2024. But you need to select them carefully taking into account volatility, taxes, risks, and geopolitical situation.
