International mutual funds are equity funds that primarily invest in stocks of companies listed outside India. These funds help to diversify the investment portfolio of the mutual fund and help the funds to obtain better returns by taking a higher risk associated with investing in international markets. In this article we have covered the concept of international mutual funds along with its features, types, advantages and best international mutual funds to invest.
Learn how Scripbox Recommends fundsFund Name | 3Y Returns | Expense Ratio |
---|---|---|
![]() | 14.4% | 0.25% |
![]() | 9.1% | 1.25% |
![]() | 19.1% | 0.24% |
![]() | -1.2% | 1.51% |
![]() | 9.5% | 0.63% |
![]() | 5.1% | 0.61% |
![]() | 13.8% | 0.67% |
![]() | 15.2% | 0.16% |
![]() | 7.3% | 2.07% |
![]() | 16.8% | 0.80% |
Note: *NA implies that Fund is relatively new. Not enough data available.
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Below are the Best International Mutual Funds in india:
Kotak Nasdaq 100 FOF Direct (G) is a International Equity fund that has delivered a 1 Year return of 8.9% and a 3 Years return of 14.4% . The fund has an expense ratio of 0.3% and an AUM of ₹ 2925 crores as of 2025-04-24. It was Launched on 2021-02-02. The minimum lump sum investment is ₹5000.
ICICI Prudential US Bluechip Equity Fund Direct (G) is a International Equity fund that has delivered a 1 Year return of -2.1% , a 3 Years return of 9.1% and a 5 Years return of 13.4% . The fund has an expense ratio of 1.3% and an AUM of ₹ 3019 crores as of 2025-04-24. The minimum lump sum investment is ₹5000.
Motilal Oswal Nasdaq 100 FOF Direct (G) is a International Equity fund that has delivered a 1 Year return of 19.5% , a 3 Years return of 19.1% and a 5 Years return of 20.8% . The fund has an expense ratio of 0.2% and an AUM of ₹ 5339 crores as of 2025-04-24. It was Launched on 2018-11-29. The minimum lump sum investment is ₹5000.
DSP World Mining Fund of Fund Direct (G) is a International Equity fund that has delivered a 1 Year return of 0.1% , a 3 Years return of -1.2% and a 5 Years return of 15.8% . The fund has an expense ratio of 1.5% and an AUM of ₹ 126 crores as of 2025-04-24. It was Launched on 2013-01-03. The minimum lump sum investment is ₹5000.
PGIM India Global Equity Opportunities Fund Direct (G) is a International Equity fund that has delivered a 1 Year return of 0.4% , a 3 Years return of 9.5% and a 5 Years return of 12.9% . The fund has an expense ratio of 0.6% and an AUM of ₹ 1251 crores as of 2025-04-24. It was Launched on 2013-01-01. The minimum lump sum investment is ₹5000.
Aditya Birla Sun Life Global Emerging Opportunities Fund Direct (G) is a International Equity fund that has delivered a 1 Year return of 3.5% , a 3 Years return of 5.1% and a 5 Years return of 11.9% . The fund has an expense ratio of 0.6% and an AUM of ₹ 222 crores as of 2025-04-24. The minimum lump sum investment is ₹5000.
Edelweiss US Technology Equity FoF Direct (G) is a International Equity fund that has delivered a 1 Year return of 5.5% , a 3 Years return of 13.8% and a 5 Years return of 17.5% . The fund has an expense ratio of 0.7% and an AUM of ₹ 2351 crores as of 2025-04-24. It was Launched on 2020-03-05. The minimum lump sum investment is ₹5000.
Navi NASDAQ 100 FoF Direct (G) is a International Equity fund that has delivered a 1 Year return of 8.8% and a 3 Years return of 15.2% . The fund has an expense ratio of 0.2% and an AUM of ₹ 908 crores as of 2025-04-24. It was Launched on 2022-03-23. The minimum lump sum investment is ₹5000.
Aditya Birla Sun Life International Equity Fund Direct (G) is a International Equity fund that has delivered a 1 Year return of 14.1% , a 3 Years return of 7.3% and a 5 Years return of 12.0% . The fund has an expense ratio of 2.1% and an AUM of ₹ 193 crores as of 2025-04-24. The minimum lump sum investment is ₹5000.
Bandhan US Equity FoF Direct (G) is a International Equity fund that has delivered a 1 Year return of 12.4% and a 3 Years return of 16.8% . The fund has an expense ratio of 0.8% and an AUM of ₹ 297 crores as of 2025-04-24. It was Launched on 2021-08-20. The minimum lump sum investment is ₹5000.
Fund Name | 3 Years Return | 5 Years Return |
Kotak Nasdaq 100 FOF Direct Growth | 14% | NA |
ICICI Prudential US Bluechip Equity Fund Direct Growth | 11.6% | 16.5% |
Motilal Oswal Nasdaq 100 FOF Direct Growth | 14% | 24.3% |
PGIM India Global Equity Opportunities Fund Direct Growth | 2.9% | 18.8% |
DSP World Mining Fund of Fund Direct Growth | 4.2% | 14.2% |
Aditya Birla Sun Life Global Emerging Opportunities Fund Direct Growth | 6.2% | 14.1% |
Edelweiss US Technology Equity FoF Direct Growth | 7.5% | NA |
Aditya Birla Sun Life International Equity Fund Direct Growth | 4.6% | 9.3% |
Bandhan US Equity FoF Direct Growth | 14.6% | NA |
Navi NASDAQ 100 FoF Direct Growth | NA | NA |
Fund Name | 3 Years Return | 5 Years Return |
Kotak Nasdaq 100 FOF Regular Plan | 13.6% | NA |
ICICI Prudential US Bluechip Equity Fund Regular Plan | 10.9% | 16.3% |
Motilal Oswal Nasdaq 100 FOF Regular Plan | 12.8% | 23.8% |
DSP World Mining Fund of Fund Regular Plan | 6.6% | 16.1% |
PGIM India Global Equity Opportunities Fund Regular Plan | 3.2% | 18.7% |
Aditya Birla Sun Life Global Emerging Opportunities Fund Regular Plan | 5.0% | 14.2% |
Edelweiss US Technology Equity FoF Regular Plan | 6.0% | NA |
Navi NASDAQ 100 FoF Regular Plan | 40% | NA |
Bandhan US Equity FoF Regular Plan | 13.0% | NA |
Aditya Birla Sun Life International Equity Fund Regular Plan | 4.5% | 9.7% |
International funds, also known as overseas funds, invest in stocks of companies that are listed in the international market. By investing in such funds, investors take an increased exposure to risk, but these funds also offer chances of a higher return.
With the ever-changing time and increasing investor knowledge, investors have now become more educated about the various investment options across the world which help them in diversifying their investment portfolio. The diversified investment portfolio is across sectors, industries, etc. and capitalizes as per the growth of the foreign companies.
These funds are riskier as it is difficult to understand the impact of the market movements of the particular country and its effect vis-a-vis global and economic changes.
Global funds and international funds are not one and the same thing. A global fund is a fund that invests in companies that can be located anywhere in the world, whether the investor’s own country or any other foreign country. The international funds are the funds that are available only in a foreign country.
A regional fund is a fund that invests in securities across a specific geographical region like Europe, Asia, etc. Most investors invest in such funds to diversify their investment portfolio for such regions about which they have thorough knowledge about.
As the name suggests, a country fund is a fund that invests in a particular country. For example, a country fund for say, the United States of America, will invest in stocks and securities present there. This enables the investors to narrow their risk and return expectations confined to a particular market, which becomes easier to study and analyze.
A global sector fund invests in specific sectors in the overseas country. This helps investors who are interested in a particular sector to make investments and take advantage of the same.
Since international funds invest in equity/debt securities across the globe, it offers the investors a great opportunity to diversify their investment portfolio. This also enables investors to take advantage of the market conditions of the respective country.
Since the investment portfolio consists of securities of a foreign country, it becomes difficult to always keep a track of the social and economic conditions of that country. It is also difficult to obtain correct and technical knowledge about their market movements. This makes international funds more prone to risk.
Since it is important to keep a track of the movements in the international markets, it becomes important to track the international markets on a real-time basis. Hence the investments are handled by the fund managers who are professionals having years of experience in handling such investments.
International funds invest in equity/debt instruments of various countries which enable the funds to capitalize on the investment by taking advantage of the changing conditions of that particular country. This helps in ensuring a minimum loss across the investment portfolio.
It is difficult for one country to top the charts consistently. Hence even if you don’t have a chance this year, there is one and it can be the next year. At a macroeconomic level, every country has its economic cycle. Through investment in different countries, you can experience lower ups and downs.
A portfolio has a combination of high, medium and low risk. If the home country is experiencing a low market, one can compensate it through the market abroad.
By diversifying your investment portfolio and leveraging the foreign currency, you can utilize your foreign exposure to meet your financial goals like higher education, retirement, etc.
Being an investor who wants to benefit by investing in an International Mutual Fund, it is important to have a decent knowledge of the international financial market and research thoroughly before investing and till the time you are invested.
Below are a few factors you can consider before investing in the Foreign Fund:
Investment in international mutual funds are suitable for investors:
1. Who are looking into diversifying their portfolio across geographies and
2. Have decent knowledge about the movements in the international markets
3. Understand its impact vis-a-vis their investment portfolio and are looking for keeping themselves invested in the long-run, say for at least 7 years or more.
However, if the investors are new to the market, this should be avoided until the investors have a basic knowledge of the workings of the mutual fund.
International funds are treated at par with debt mutual funds from a taxation perspective. If the investors sell the units of the funds before a period of less than 3 years, investors will have to pay short-term capital gains tax as per the slab rate applicable to the investor.
Where the fund is held for more than 3 years and sold after that, the investors will get the benefit of indexation and the gains will be taxed @20%. The gains will be long-term capital gain.
As per the Finance Bill 2023, from April 1st 2023, capital gains arising from investments in international funds will be taxed as per the investor’s Income slab rate. Thus, international mutual funds and debt mutual funds will no longer have the benefit of LTCG.
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