What is an international fund?

International mutual funds are mutual fund scheme that invests in stocks, bonds, or securities of companies listed outside India. Investors contribute in Rupees, and the fund manager deploys capital into foreign markets such as the US, Europe, Japan, or Taiwan. SEBI mandates that at least 80% of the corpus be allocated to foreign equity instruments. These funds either invest directly in overseas stocks or use a Fund of Funds structure, investing in an existing foreign mutual fund.

Which international fund is best?

As of 18th February 2026, some of the top International mutual funds in India based on 1-year returns include: Nippon India Taiwan Equity Fund Franklin Asian Equity Fund Nippon India Japan Equity Fund Aditya Birla SL Intl. Equity Fund Disclaimer : Please note that the technology funds list is for educational purposes only, and is not recommendatory.

Are international funds risky?

Like all mutual funds, international mutual funds carry inherent risks, and some are unique to overseas investing. Currency risk is one of the most prominent, where movements between the Rupee and the invested currency can influence returns in either direction. Geopolitical events, trade tensions, and regulatory shifts in foreign markets can also impact fund performance. Funds following a Fund of Funds structure tend to have higher expense ratios since fees apply at two levels. Investors generally factor in these risk dimensions alongside their own risk tolerance before considering overseas exposure. Disclaimer : This information is for educational purposes only and does not constitute investment advice. Mutual fund investments are subject to market risks, including currency and geopolitical risks. Please read all scheme-related documents carefully and consult a qualified financial advisor before investing.

Should I invest in international funds in 2026?

Whether international mutual funds align with an investor's portfolio is a decision that depends on individual financial goals, investment horizon, existing portfolio composition, and comfort with currency and geopolitical volatility. Most investment frameworks suggest that overseas exposure works best as part of a diversified portfolio with a long-term horizon. Consulting a SEBI-registered financial advisor can help evaluate whether this category fits a given investor's overall plan. Disclaimer : This information is for educational and informational purposes only and should not be construed as investment advice or a recommendation. Mutual fund investments are subject to market risks. Please consult a SEBI-registered financial advisor before making investment decisions.

How will international funds do in 2026?

The performance of international mutual funds is influenced by several macroeconomic variables, including US Federal Reserve rate decisions, global inflation trends, geopolitical developments, and Rupee movements against major global currencies. Overseas Fund of Funds registered a 35% jump in AUM through 2025, reflecting sustained investor interest in global diversification. As with any market-linked investment, future performance depends on conditions that continue to evolve. Disclaimer : Past performance is not indicative of future results. This content does not constitute a forecast or investment recommendation. Mutual fund investments are subject to market risks. Please read all scheme-related documents carefully and consult a qualified financial advisor before investing.

Is it worth investing in international mutual funds?

International mutual funds give investors access to global companies and sectors that are not available in India's domestic market, such as semiconductors, electric vehicles, and artificial intelligence. They also carry distinct considerations, including currency risk, higher expense ratios from the Fund of Funds structure, and non-equity tax treatment. Investors typically weigh these factors in the context of their broader financial plan and long-term goals before deciding on any allocation. Disclaimer : This content is for educational purposes only and does not constitute financial advice or an investment recommendation. Mutual fund investments are subject to market risks. Please read all scheme-related documents carefully and consult a qualified financial advisor before making investment decisions.

What is the tax on international funds?

International funds are treated as non-equity funds for taxation. Gains on holdings under 24 months are taxed at the investor's slab rate, while gains beyond 24 months attract a flat 12.5% LTCG tax without indexation. Dividend income is also taxed at the applicable slab rate. Investors may consult a tax advisor for guidance specific to their situation.

Top International Funds in India

The Indian mutual fund industry crossed ₹81 lakh cr in AUM as of January 2026, with overseas Fund of Funds registering a 35% jump in the past year. International mutual funds offer Indian investors a SEBI-regulated route to access equity markets across the US, Europe, Asia, and beyond.

Top International Mutual Funds in 2026

Top International Funds in India 2026

Here is a list of the top international mutual funds in India, ranked by 5‑year CAGR. Get detailed information about funds that provide global market exposure and performance data.

Created by

@8260032 8260032

Showing 1 - 6 of 6 results

last updated at 8:00 AM IST

	NameMFs (6)↓	↓Sub CategorySub Category↓	↓PlanPlan↓	↓AUMAUM↓	↓CAGR 5YCAGR 5Y↓	↓CAGR 3YCAGR 3Y↓	↓Absolute Returns - 1YAbsolute Ret. - 1Y↓	↓NAVNAV↓	↓Expense RatioExpense Ratio↓	↓Exit LoadExit Load↓	↓VolatilityVolatility↓	↓Tracking ErrorTracking Error↓
1.	ICICI Pru US Bluechip Equity Fund ICICI Pru US Bluechip Equity Fund	Thematic Fund - Global Thematic Fund - Global	Growth Growth	3,693.00 3,693.00	11.85 11.85	13.84 13.84	18.88 18.88	78.66 78.66	1.14 1.14	1.00 1.00	20.19 20.19	11.39 11.39
2.	Aditya Birla SL Intl. Equity Fund Aditya Birla SL Intl. Equity Fund	Thematic Fund - Global Thematic Fund - Global	Growth Growth	303.58 303.58	11.04 11.04	15.96 15.96	26.46 26.46	50.16 50.16	2.06 2.06	1.00 1.00	14.44 14.44	- -
3.	Nippon India US Equity Opp Fund Nippon India US Equity Opp Fund	Thematic Fund - Global Thematic Fund - Global	Growth Growth	703.22 703.22	9.88 9.88	17.59 17.59	8.17 8.17	39.80 39.80	1.25 1.25	1.00 1.00	18.33 18.33	- -
4.	Nippon India Japan Equity Fund Nippon India Japan Equity Fund	Thematic Fund - Global Thematic Fund - Global	Growth Growth	311.26 311.26	9.26 9.26	18.02 18.02	32.89 32.89	27.37 27.37	1.24 1.24	1.00 1.00	20.58 20.58	- -
5.	Franklin Asian Equity Fund Franklin Asian Equity Fund	Thematic Fund - Global Thematic Fund - Global	Growth Growth	426.90 426.90	2.94 2.94	12.55 12.55	26.97 26.97	39.26 39.26	1.60 1.60	1.00 1.00	17.95 17.95	- -
6.	Nippon India Taiwan Equity Fund Nippon India Taiwan Equity Fund	Thematic Fund - Global Thematic Fund - Global	Growth Growth	519.50 519.50	- -	49.12 49.12	161.66 161.66	26.61 26.61	1.04 1.04	1.00 1.00	38.31 38.31	20.95 20.95

Edit Filters

Analyse International Mutual Funds Further

Visit 'International Funds' Screener

Disclaimer: Please note that the above table is for informational purposes only, and is not recommendatory. Please do your own research or consult your financial advisor before investing. The data is derived from Tickertape Mutual Fund Screener and is subject to real-time updates.

Selection criteria: 5Y CAGR: Highest to Lowest, Plan: Growth, Category: Equity, Sub-category: Thematic Fund - Global

What are International Mutual Funds in India

International equity funds are mutual fund schemes that invest in stocks, bonds, and securities of companies located outside India. You invest in Indian Rupees, and the fund manager deploys that money into foreign markets like the US, Europe, Japan, or China. As per SEBI regulations, these funds must allocate at least 80% of their assets to foreign equity instruments. They give Indian investors access to global companies and economies that India's domestic market does not offer.

Overview of the Best International Mutual Funds in India

ICICI Pru US Bluechip Equity Fund

This fund mainly invests in large, well‑established US companies with strong business fundamentals. It aims to grow your money over the long term by backing top‑tier blue-chip stocks in the US market.

Aditya Birla SL Intl. Equity Fund

This fund invests in a diversified mix of international companies across regions such as the US, Europe, and Asia. It aims to offer long‑term capital growth by focusing on quality global equities.

Nippon India US Equity Opp Fund

This fund focuses on investing in US stocks that show strong growth potential. It aims to deliver long‑term returns by selecting opportunities in the large and dynamic US equity market.

Nippon India Japan Equity Fund

This fund invests primarily in Japanese companies across various sectors. It aims to generate long‑term growth by tapping into opportunities in Japan’s equity market.

Franklin Asian Equity Fund

This fund focuses on equities from Asian markets excluding Japan. It aims to grow capital over the long term by investing in high‑potential companies across emerging and developed Asian economies.

How to Invest in Best International Funds in India?

Here's how you can identify and invest in the best international mutual funds in India with Tickertape Mutual Fund Screener -

Create an account on the Tickertape or log in if you already have one.
Open International Mutual Funds Screener
Filter out the best international mutual funds based on over 50 fundamental and technical filters.
After identifying the international mutual fund that aligns with your investment thesis, click on "Place Order" to invest in the mutual fund.

With Tickertape Mutual Fund Screener, you can invest via 'lumpsum' or start a 'SIP' in international mutual funds. Moreover, by connecting your portfolio, you can do a deep analysis of your portfolio and assess its performance.

Taxation on International Funds in India

International funds in India are treated as non-equity funds, and gains from them are taxed as capital gains.

Capital Gains Tax	Holding Period	Tax Rate
Short-Term Capital Gains (STCG)	Less than 24 months	Applicable income tax slab rate
Long-Term Capital Gains (LTCG)	More than 24 months	12.50% (flat, without indexation)
Dividend Income	Any holding period	Applicable income tax slab rate

Benefits of Investing in International Funds

Geographic Diversification

When you invest only in Indian markets, your portfolio's performance depends entirely on how India's economy performs. International funds spread your investments across multiple economies, so a slowdown in one country does not pull down your entire portfolio.

Access to Global Giants

India's listed market does not include companies like Apple, Microsoft, Amazon, or Toyota. Global mutual funds in India give you direct ownership in these global leaders, allowing you to participate in their growth without opening a foreign brokerage account.

Rupee Depreciation Favour

The Indian Rupee has historically weakened against the US Dollar over time. When the Rupee depreciates, the value of your international investment rises when converted back to Rupees, giving your returns an added boost without any extra effort on your part.

Exposure to Sectors Unavailable

India's market heavily represents banking, IT services, and FMCG. International funds open the door to sectors like electric vehicles, advanced semiconductors, biotech, and artificial intelligence, themes that global markets represent far more strongly than domestic indices.

Professional Fund Management

Researching foreign markets independently requires time, expertise, and access to global data. International fund managers do this work for you, analysing geopolitical factors, currency trends, and economic indicators across multiple countries before making investment decisions.

Risks of Investing in International Funds

Currency Risk

Your Rupee investment converts into a foreign currency when the fund deploys it abroad. If the foreign currency weakens against the Rupee, your returns shrink when the fund converts them back. Currency movement works in both directions, and it adds a layer of unpredictability that domestic funds do not carry.

Geopolitical & Economic Risk

Political instability, trade wars, sanctions, or regulatory crackdowns in the target country can directly impact fund performance. Events like the US-China trade tensions or regulatory action on Chinese tech companies demonstrated how quickly geopolitical developments can hurt international fund returns.

Higher Expense Ratios

International funds, especially those using the FoF structure, charge fees at two levels: the Indian fund's expense ratio and the underlying overseas fund's expense ratio. These combined costs run higher than what domestic equity funds typically charge, and they reduce your net returns over time.

Regulatory Risk

SEBI and RBI have placed a USD 7 bn industry-wide cap on international investment. Once this limit gets exhausted, fund houses stop accepting fresh inflows. This regulatory constraint limits your flexibility to invest or add to your position whenever you choose.

Market Volatility

International markets react to a wider set of triggers, including global recessions, interest rate changes in the US Federal Reserve, or commodity price shocks. This makes international funds more volatile than many domestic equity funds, especially over shorter time horizons.

Download Now

Factors to Consider Before Investing in International Funds

Your Investment Objective

Different international funds serve different goals. Some focus on capital growth through US tech stocks, while others target income through global bonds or stability through diversified global portfolios. You need to match the fund's mandate to what you actually want from your investment.

Risk Appetite

International funds carry currency risk, geopolitical risk, and market volatility all at once. You need a genuinely high risk tolerance to absorb the swings that come with overseas investing. Financial advisors generally recommend keeping international fund allocation to 10 to 15% of your total portfolio.

Investment Horizon

International funds suit long-term investors with a horizon of at least five to seven years. Short-term investors often find the combination of currency fluctuations and global market volatility difficult to manage without locking in losses.

Fund Structure: Direct vs FoF

You need to understand whether the fund invests directly in foreign securities or through the FoF route, because this affects your costs, tax treatment, and the level of control the Indian fund manager exercises over the portfolio's composition.

Expense Ratio

Higher costs compound into significantly lower returns over long investment periods. Before selecting a fund, compare expense ratios across similar international funds and factor that cost into your return expectations.

Tax Implications

International funds receive non-equity tax treatment in India. Gains get taxed at your applicable slab rate for holdings under 24 months. For holdings beyond 24 months, LTCG applies at 12.5% without indexation benefits. Understanding this upfront helps you plan your investment horizon and exit timing more effectively.

Conclusion

International funds represent a meaningful avenue for Indian investors seeking geographic diversification and exposure to global growth opportunities. They provide access to world-class companies and industries that domestic markets do not adequately represent, while operating within a familiar and SEBI-regulated mutual fund framework. However, investors must approach this category with a clear understanding of the associated risks, including currency volatility, geopolitical factors, regulatory investment caps, and the non-equity tax treatment that applies to these funds. As with any investment decision, consulting a qualified financial advisor before investing remains strongly advisable.

Popular Stock Collections

Popular Mutual Fund Collections

Frequently Asked Questions About International Funds

What is an international fund?
International mutual funds are mutual fund scheme that invests in stocks, bonds, or securities of companies listed outside India. Investors contribute in Rupees, and the fund manager deploys capital into foreign markets such as the US, Europe, Japan, or Taiwan. SEBI mandates that at least 80% of the corpus be allocated to foreign equity instruments. These funds either invest directly in overseas stocks or use a Fund of Funds structure, investing in an existing foreign mutual fund.
Which international fund is best?
As of 18th February 2026, some of the top International mutual funds in India based on 1-year returns include:
Disclaimer: Please note that the technology funds list is for educational purposes only, and is not recommendatory.
Are international funds risky?
Like all mutual funds, international mutual funds carry inherent risks, and some are unique to overseas investing. Currency risk is one of the most prominent, where movements between the Rupee and the invested currency can influence returns in either direction. Geopolitical events, trade tensions, and regulatory shifts in foreign markets can also impact fund performance. Funds following a Fund of Funds structure tend to have higher expense ratios since fees apply at two levels. Investors generally factor in these risk dimensions alongside their own risk tolerance before considering overseas exposure.
Disclaimer: This information is for educational purposes only and does not constitute investment advice. Mutual fund investments are subject to market risks, including currency and geopolitical risks. Please read all scheme-related documents carefully and consult a qualified financial advisor before investing.
Should I invest in international funds in 2026?
Whether international mutual funds align with an investor's portfolio is a decision that depends on individual financial goals, investment horizon, existing portfolio composition, and comfort with currency and geopolitical volatility. Most investment frameworks suggest that overseas exposure works best as part of a diversified portfolio with a long-term horizon. Consulting a SEBI-registered financial advisor can help evaluate whether this category fits a given investor's overall plan.
Disclaimer: This information is for educational and informational purposes only and should not be construed as investment advice or a recommendation. Mutual fund investments are subject to market risks. Please consult a SEBI-registered financial advisor before making investment decisions.
How will international funds do in 2026?
The performance of international mutual funds is influenced by several macroeconomic variables, including US Federal Reserve rate decisions, global inflation trends, geopolitical developments, and Rupee movements against major global currencies. Overseas Fund of Funds registered a 35% jump in AUM through 2025, reflecting sustained investor interest in global diversification. As with any market-linked investment, future performance depends on conditions that continue to evolve.
Disclaimer: Past performance is not indicative of future results. This content does not constitute a forecast or investment recommendation. Mutual fund investments are subject to market risks. Please read all scheme-related documents carefully and consult a qualified financial advisor before investing.
Is it worth investing in international mutual funds?
International mutual funds give investors access to global companies and sectors that are not available in India's domestic market, such as semiconductors, electric vehicles, and artificial intelligence. They also carry distinct considerations, including currency risk, higher expense ratios from the Fund of Funds structure, and non-equity tax treatment. Investors typically weigh these factors in the context of their broader financial plan and long-term goals before deciding on any allocation.
Disclaimer: This content is for educational purposes only and does not constitute financial advice or an investment recommendation. Mutual fund investments are subject to market risks. Please read all scheme-related documents carefully and consult a qualified financial advisor before making investment decisions.
What is the tax on international funds?
International funds are treated as non-equity funds for taxation. Gains on holdings under 24 months are taxed at the investor's slab rate, while gains beyond 24 months attract a flat 12.5% LTCG tax without indexation. Dividend income is also taxed at the applicable slab rate. Investors may consult a tax advisor for guidance specific to their situation.

Disclaimer: This article is for informational purposes only. The content of the article including securities/investment products mentioned if any, should not in any manner be construed as an investment advice, recommendation, offer, solicitation to buy/hold/sell any securities/investment products. The securities quoted if any, are for illustration only and are not recommendatory. Investment in securities market are subject to market risks. Read all the related documents carefully before investing. Please consult a SEBI-registered financial advisor before investing.