International Funds: Performance, NAV, Returns & Schemes 2026

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.

Who Can Consider International Mutual Funds?

1. Global Diversification: Investors looking to understand or gain exposure beyond Indian markets may consider international mutual funds as part of their research.
2. Overseas Sector Exposure: These funds can provide access to sectors and companies that may have limited representation in the Indian market.
3. Long-Term Horizon: International markets and currency movements can be volatile, making investment horizon an important factor when evaluating these funds.
4. Higher Risk Awareness: Investors should account for currency risk, geopolitical developments, overseas regulations and market-specific volatility before assessing international mutual funds.

How do International Mutual Funds Work?

1. Overseas Investments: International mutual funds invest in securities listed outside India, either directly or through other international funds and ETFs.
2. Fund Structures: They may operate as direct equity funds, fund-of-funds or feeder funds that invest in an underlying overseas scheme.
3. Currency Impact: Returns can be affected by both the performance of the underlying investments and movements in the Indian rupee against foreign currencies.
4. Market Exposure: Depending on the scheme, funds may track a particular country, region, sector or broader global market.
5. Professional Management: Fund managers select or track overseas investments based on the scheme’s stated investment objective and mandate.

Overview of the Best International Mutual Funds in India

ICICI Pru US Bluechip Equity Fund

This fund builds its portfolio around large-cap companies listed on US stock exchanges, targeting long-term capital appreciation for Indian investors. It carries an AUM of ₹3,647 cr and has delivered a 5-year annualised return of around 13.35%. Investors looking for steady exposure to established American businesses often consider this fund.

Nippon India US Equity Opportunities Fund

With an AUM of ₹731 cr, this fund targets high-quality, high-growth companies listed on US stock exchanges. Alphabet, Meta, and Amazon feature among its top holdings, reflecting its focus on dominant US technology and consumer businesses. The fund has delivered a 5-year annualised return of 12.36%.

Aditya Birla SL Intl. Equity Fund

Geographic diversification drives this fund's strategy, as it invests exclusively in international stocks across multiple countries to benefit from low correlation with Indian markets. It manages an AUM of ₹276 cr and has delivered a 5-year annualised return of 12.60%, targeting high-quality global companies with long-term growth potential.

Nippon India Japan Equity Fund

Nippon India Japan Equity Fund is an international equity scheme that provides exposure to companies listed in Japan. The fund invests across Japanese sectors and companies, allowing Indian investors to participate in the country’s equity market. Its returns can be influenced by Japanese market performance, currency movements and broader economic conditions.

Franklin Asian Equity Fund

Asian markets, excluding Japan, form the investment universe of this fund, which seeks medium- to long-term capital appreciation across the region. Its top holdings span TSMC, Tencent, Samsung Electronics, and HDFC Bank. The fund manages an AUM of ₹315 cr and has posted a strong 1-year return of 36.37%.

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 -

1. Create an account on the Tickertape or log in if you already have one.
2. Open International Mutual Funds Screener
3. Filter out the best international mutual funds based on over 50 fundamental and technical filters.
4. 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.

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.