Best International Mutual Funds to Invest in India 2025
Diversification is a term that investors often hear in the markets. A strong and healthy portfolio is usually diversified across various companies, sectors, and even asset classes. However, investors can also achieve diversification by investing in international markets. By investing in international mutual funds, investors can invest in global companies and expand their portfolios to overseas markets. In this blog, we will explore the best international mutual funds in India and the advantages of investing in them.
List of Best International Mutual Funds in India
Having the best international mutual funds in India in one’s portfolio can be a helpful addition to it. International mutual funds, as the name suggests, are funds that invest in companies in overseas markets. These funds can either be global or regional or focus on a specific global sector.
Investors can capitalise on the growth in international markets and invest in some of the biggest global companies through international mutual funds. Here are some of the best international mutual funds in India.
(Data as of January 29, 2025)
|
Fund Name |
3-year Annualised Return |
|
20.63% |
|
|
Invesco India Invesco Global Equity Income FoF Direct - Growth |
16.86% |
|
Franklin India Feeder Franklin US Opportunities Direct Fund - Growth |
16.35% |
|
Aditya Birla Sun Life Global Excellence Equity FoF Direct - Growth |
15.33% |
|
15.16% |
|
|
14.73% |
|
|
14.62% |
|
|
13.81% |
|
|
13.65% |
|
|
13.62% |
Overview of Best International Mutual Funds
Let’s take a close look at the best international mutual funds in India.
(Please note: The data is as of January 29, 2025)
Edelweiss US Technology FoF Direct - Growth
- 3Y Annualised Returns – 20.63%
- Carries very high risk
- Assets Under Management (AUM) – Rs 2,645 crore
- 98.4% of funds allocated to equity, 1.8% to debt
- Minimum SIP Amount – Rs 100
- Expense Ratio – 0.68%
- Inception Date - March 5, 2020
Invesco India Invesco Global Equity Income FoF Direct - Growth
- 3Y Annualised Returns – 16.96%
- Carries very high risk
- AUM – Rs 25.99 crore
- 99.7% of funds allocated to equity, 0.3% held as cash
- Minimum SIP Amount – Rs 500
- Expense Ratio – 0.86%
- Inception Date - May 5, 2014
Franklin India Feeder Franklin US Opportunities Direct Fund - Growth
- 3Y Annualised Returns – 16.35%
- Carries very high risk
- AUM – Rs 3,748.66 crore
- 98.3% of funds allocated to equity, 1.7% held as cash
- Minimum SIP Amount – Rs 500
- Expense Ratio – 0.62%
- Inception Date - January 2, 2013
Aditya Birla Sun Life Global Excellence Equity FoF Direct - Growth
- 3Y Annualised Returns – 15.33%
- Carries very high risk
- AUM – Rs 199.25 crore
- 99% of funds allocated to equity, 1% held as cash
- Minimum SIP Amount – Rs 500
- Expense Ratio – 0.68%
- Inception Date - January 1, 2013
Motilal Oswal S&P 500 Index Fund Direct - Growth
- 3Y Annualised Returns – 15.16%
- Carries very high risk
- AUM – Rs 3,744.47 crore
- 97.9% of funds allocated to equity, 2% of funds allocated to debt
- Minimum SIP Amount – Not supported
- Expense Ratio – 0.62%
- Inception Date - April 28, 2020
Bandhan US Equity FoF Direct - Growth
- 3Y Annualised Returns – 14.73%
- Carries very high risk
- AUM – Rs 349.46 crore
- 98.6% of funds allocated to equity, 1.4% held as cash
- Minimum SIP Amount – Not supported
- Expense Ratio – 0.80%
- Inception Date - August 20, 2021
Motilal Oswal Nasdaq 100 FoF Direct - Growth
- 3Y Annualised Returns – 14.62%
- Carries very high risk
- AUM – Rs 6,587 crore
- 98.7% of funds allocated to equity, 2.1% of the funds allocated to debt.
- Minimum SIP Amount – Not supported
- Expense Ratio – 0.24%
- Inception Date - November 29, 2018
Axis Global Equity Alpha FoF Direct - Growth
- 3Y Annualised Returns – 13.81%
- Carries very high risk
- AUM – Rs 823.87 crore
- 97.4% of funds allocated to equity, 3.7% of the funds allocated to debt
- Minimum SIP Amount – Rs 100
- Expense Ratio – 0.89%
- Inception Date - September 24, 2020
Axis Global Innovation FoF Direct - Growth
- 3Y Annualised Returns – 13.65%
- Carries very high risk
- AUM – Rs 512.99 crore
- 97% of funds allocated to equity, 3.5% of the funds allocated to debt
- Minimum SIP Amount – Rs 100
- Expense Ratio – 0.86%
- Inception Date - May 28, 2021
PGIM India Global Equity Opportunities Fund Direct - Growth
- 3Y Annualised Returns – 13.62%
- Carries very high risk
- AUM – Rs 1,348.95 crore
- 98.3% of funds allocated to equity, 2% of the funds allocated to debt
- Minimum SIP Amount – Rs 1,000
- Expense Ratio – 0.63%
- Inception Date - January 1, 2013
Advantages of International Mutual Funds
International mutual funds can be beneficial to investors in several ways. Let’s look at the key advantages of investing in them.
Diversify Across Boundaries
Diversification not only offers investors multiple avenues of growth but is also key to mitigating risk. Along with diversifying across asset classes, one can also diversify across various countries through international mutual funds.
Cost-Effectiveness
Investing in international mutual funds allows investors to build a cost-effective portfolio. When one market hits a high, the investors can seek value in other markets and thus, build a strong portfolio.
Convenience
Investors can benefit from international mutual funds as they are an easy and convenient mode of investing in global markets. The investors do not need to go through the hassle of picking stocks since the decision-making is done by professional fund managers.
Factors to Consider Before Investing in International Mutual Funds
Although international mutual funds may be a great way to add global investments to your portfolio, there are several key factors to keep in mind before investing in them.
Risk
Just like any other investment, there are risks attached to international mutual funds as well. Since most global funds are equity-based, they carry higher risk. Investors should assess their risk appetite and pick mutual funds that fit their risk profile and financial goals.
Factors Impacting International Funds
International funds are significantly impacted by global events and macroeconomic factors. Any changes in policy or a shift in the political situation may impact the performance of an international fund. Geopolitical tensions also play a key role in the performance of these funds.
Taxation
Although most international mutual funds invest in equity, the funds are classified as debt funds since they do not invest in domestic equity. As a result, these funds attract capital gains tax and are treated similarly to debt funds.
Conclusion
Investing in international mutual funds allows investors to tap into the growth of diverse global markets while diversifying their portfolios across geographical boundaries. However, before investing in the best international mutual funds in India, investors should be aware of the risks and factors that impact the performance of these international funds.
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*Mutual Funds Selection Criteria for Top Mutual Funds Listed Above These mutual funds are listed based on the 3-year annualised returns. The selection is arranged in descending order. It is important to note that 3-year returns in no way guarantees a mutual fund’s performance. However, it can be used as a criterion for shortlisting mutual funds from within a category. Investors should recognise that other factors, such as financial health, management efficiency, and market trends, play crucial roles in determining the actual success of an investment. This mutual fund selection should not be construed as investment advice/recommendations/offer/solicitation of an offer to invest in any mutual funds by Groww Invest Tech Pvt. Ltd. (formerly known as Nextbillion Technology Pvt. Ltd.). |
Disclaimer: This blog is solely for educational purposes. The securities/investments quoted here are not recommendatory.