Best International Mutual Funds for Indian Investors

In an increasingly linked world, buying simply in local markets may not be enough to maximize profits and reduce risk.

International mutual funds provide Indian investors with a chance to broaden their investments and gain exposure to the growth prospects of countries and companies abroad. By participating in these funds, investors can benefit from the knowledge of professional fund managers who closely watch global markets and make informed investment decisions.

What are International Mutual Funds?

International mutual funds are investment tools that pool money from various clients and invest in stocks across multiple countries or areas outside India. These funds can invest in stocks, bonds, or a mix of both, giving buyers diverse foreign assets. The main goal of international mutual funds is to provide buyers with exposure to foreign markets, sectors, and asset types that may be challenging in the domestic market.

How Do International Mutual Funds Work?

International mutual funds work similarly to local mutual funds but with a global investment mission. Fund managers regularly analyze investment chances worldwide, choosing stocks that fit the fund's investment goal and strategy. These funds can be broadly grouped into regional funds (focused on a specific area like Europe or Asia), sector funds (concentrated on a particular business like technology or healthcare), or global funds that spend across multiple regions and sectors.

Top International Mutual Funds to Invest in 2025

Edelweiss US Technology FoF: ​The Edelweiss US Technology Equity Fund of Fund is an open-ended international equity mutual fund that primarily invests in the JPMorgan Funds – US Technology Fund.

Invesco India Invesco Global Equity Income FoF: Invesco India – Invesco Global Equity Income Fund of Fund is an open-ended equity mutual fund that primarily invests in the Invesco Global Equity Income Fund, an overseas equity fund focusing on global companies.

Franklin India Feeder Franklin US Opportunities Direct Fund: The Franklin India Feeder – Franklin U.S. Opportunities Fund is an open-ended international equity mutual fund that primarily invests in the Franklin U.S. Opportunities Fund. This overseas fund focuses on U.S.-based companies across various sectors with strong growth potential.​

Aditya Birla Sun Life Global Excellence Equity FoF: The Aditya Birla Sun Life Global Excellence Equity Fund of Fund is an open-ended international equity mutual fund that primarily invests in the Julius Baer Global Excellence Equity Fund. This fund aims to achieve long-term capital growth by focusing on global companies with strong growth potential.​

Motilal Oswal S&P 500 Index Fund: The Motilal Oswal S&P 500 Index Fund is an open-ended index fund that aims to replicate the performance of the S&P 500 Index, providing investors with exposure to 500 of the largest U.S. companies across various sectors.​ 

Bandhan US Equity FoF: The Bandhan US Equity Fund of Fund is an open-ended international equity mutual fund that primarily invests in units of overseas mutual funds or exchange-traded funds (ETFs) focusing on U.S. equity securities. Launched on August 20, 2021, the fund seeks long-term capital appreciation by providing exposure to U.S. markets.​

Motilal Oswal Nasdaq 100 FoF: This fund tracks the success of the Nasdaq 100 Index, which consists of the 100 biggest non-financial companies listed on the Nasdaq Stock Market. It gives Indian buyers an easy way to invest in big U.S. technology and growing companies.

Axis Global Equity Alpha FoF: The Axis Global Equity Alpha Fund of Fund is an open-ended international equity mutual fund that primarily invests in the Schroder International Selection Fund Global Equity Alpha. This fund aims to achieve long-term capital appreciation by investing in equity and equity-related securities of companies worldwide.

Axis Global Innovation FoF: The Axis Global Innovation Fund of Fund is an open-ended international equity mutual fund that primarily invests in the Schroder International Selection Fund Global Disruption. This overseas fund focuses on companies worldwide that benefit from disruptive innovations, aiming for long-term capital appreciation.​

PGIM India Global Equity Opportunities Fund: The PGIM India Global Equity Opportunities Fund is an open-ended international equity mutual fund that primarily invests in units of the PGIM Jennison Global Equity Opportunities Fund. This overseas fund focuses on global companies with strong growth potential, aiming to provide long-term capital appreciation.​
 

Performance List of Best International Mutual Funds 2025

Here is performance list of Best International Mutual Funds to Invest in india:

*Data as of April 2025

How to Find The Best International Mutual Funds?

Choosing the best foreign mutual funds involves several important steps:

• Set financial goals and risk tolerance: Define your objectives (growth, income, or both) and assess how much risk you can handle.
• Review the fund’s strategy and holdings: Ensure its investment approach, sectors, and stock choices align with your goals and risk profile.
• Check past performance: Compare the fund’s historical returns to benchmarks, keeping in mind that past results don’t guarantee future success.
• Evaluate fund management: Look into the experience and strategy of the fund managers, as a strong team and sound process can boost performance.
• Analyze fees and costs: Lower expense ratios and fees help maximize long-term gains.
• Assess risk factors: Consider the fund’s volatility, diversification, and risk controls to ensure it suits your risk appetite.
• Verify accessibility: Make sure the fund is available to Indian investors and easy to buy or redeem without major restrictions.
   

Why Should You Invest in International Mutual Funds?

Investing in foreign mutual funds offers several perks to Indian investors:

● Diversification: By buying in foreign markets, you can broaden your portfolio beyond local stocks and bonds. This diversification can lower overall stock risk and improve results.
● Access to global opportunities: International mutual funds provide exposure to companies and businesses that may not be available or well-represented in the Indian market, allowing you to capitalize on growth opportunities worldwide.
● Currency diversification: Investing in foreign funds can help reduce the effect of currency changes on your portfolio, as the fund's stocks are priced in different currencies.
● Professional management: International mutual funds are handled by experienced professionals with the knowledge and resources to study global markets, find suitable investments, and manage risk effectively.
● Potential for better returns: While past success is not a promise, foreign markets can offer good growth possibilities, especially in rising countries or areas with strong growth paths.

Benefits of Investing in the Best International Mutual Funds in India

Investing in the Best International Mutual Funds to buy in India can provide several advantages:

• Global market access: Enables Indian investors to participate in international business growth beyond domestic options.
• Diversification: Spreads investments across regions, industries, and asset classes, potentially reducing overall risk.
• Exposure to innovation: Offers access to disruptive and tech-driven companies leading global progress.
• Currency appreciation: Potential gains from stronger foreign currencies can boost returns.
• Expert management: Managed by professionals with expertise in global markets and investment strategies.

Things to Consider Before Investing in Best International Mutual Funds

While participating in foreign mutual funds can offer significant benefits, it's essential to consider the following factors:

• Currency risk: Exchange rate fluctuations can affect investment value.
• Legal and political risk: Foreign regulations and political instability can introduce additional uncertainty.
• Tax implications: International funds may have different and potentially complex tax treatments.
• Higher fees: These funds often come with increased expense ratios and management costs.
• Volatility: Foreign markets can be more volatile than domestic ones, leading to larger value swings.
   

How can you invest in international mutual funds from India?

Investing in foreign mutual funds from India is pretty simple. Here's a step-by-step guide:

• Open a demat and trade accounts with a reliable exchange company or investment tool offering foreign mutual funds.
• Complete the necessary KYC (Know Your Customer) processes and provide the documents.
• Research and pick the foreign mutual funds that match your financial goals, risk tolerance, and investment timeline.
• Transfer cash from your bank account to your trade account.
• Place an order to purchase units of the chosen foreign mutual funds through your trading site or provider.
• Monitor your investments regularly and consider adjusting your portfolio to match your financial goals.

It's important to note that investing in foreign mutual funds may involve extra paperwork and legal requirements compared to investing in domestic funds. Consult with a financial advisor or investment professional to ensure compliance with all relevant laws and to build a well-diversified investment plan.
 

Conclusion

Investing in top foreign mutual funds is a smart way for Indian investors to diversify their portfolios, tap into global growth, and enhance overall returns. With a variety of funds targeting different regions, sectors, and strategies, investors can align their choices with their financial goals and risk tolerance. However, it’s essential to thoroughly evaluate the risks and research each fund carefully. By considering factors like performance, management quality, fees, and risk profile, investors can make informed decisions and benefit from international market opportunities.
 

Disclaimer: This blog is intended solely for educational purposes. The securities and investments mentioned are not to be construed as recommendations.