International mutual funds are funds, which predominantly invest in stocks of companies listed out of India, such as Google, Facebook, Apple, Amazon, Barclays, Deutsche Bank, Novartis, etc. In other words, they allow investors from a country to invest in the global markets. In this article, we will describe 10 best international mutual funds in India 2023.
What is International Mutual Fund
International funds, also known as foreign funds, are the equity funds that invest in foreign markets instead of the investor’s home country. In past few years, international mutual funds have gained popularity among investors because of extra room for portfolio diversification and people are becoming more aware of the investment options across the world.
Also Read: Mutual Funds for NRIs from USA/Canada to Invest in India
For any NRI mutual fund related queries, you can get in touch with NRI wealth managers right away.
Benefits of international mutual funds
- Provides exposure to global companies not listed in India
- Offers you an opportunity to invest in stocks of celebrated companies like Apple, Starbucks and Netflix among others
- Enables portfolio diversification across borders
- Portfolio diversification reduces the risk in investment risk by distributing the investment pool across different investments
- Strong hedge against rupee depreciation (Rupee depreciation results in higher returns from international funds)
- Reduces the risk to overall portfolio resulting from the adverse domestic market as volatility in local markets rarely affect the global market
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SBNRI is an authorized Mutual Fund Distributor platform & registered with the Association of Mutual Funds in India (AMFI). ARN No. 246671.
Can NRIs Invest in 10 Best international mutual funds in India
Yes, NRIs can also invest in mutual funds listed below. Best performing NRI mutual funds are also part of top international mutual funds. However, not all AMCs offer mutual funds for NRIs from USA and Canada due to compliance requirements under FATCA.
Following top international mutual funds for individuals looking to participate in the international market. Residents as well as NRIs can invest in these funds.
- DSP World Mining Fund
- Edelweiss US Value Equity Offshore Fund
- Aditya Birla Sun Life Commodity Equities – Global Agri Fund
- DSP US Flexible Equity Fund
- ICICI Prudential US Bluechip Equity Fund
- Invesco India – Invesco Global Equity Income FoF
- Edelweiss Europe Dynamic Equity Offshore Fund
- Aditya Birla Sun Life International Equity Plan A
- Invesco India – Invesco Pan European Equity FoF
- Nippon India US Equity Opportunities Fund
| Fund | 1-Year Return | 5-Year Returns |
|---|---|---|
| DSP World Mining Fund | 19.31% | 19.99% |
| Edelweiss US Value Equity Offshore Fund | 11.51% | 13.6% |
| Aditya Birla Sun Life Commodity Equities – Global Agri Fund | -0.60 | 10.94% |
| DSP US Flexible Equity Fund | 3.71% | 13.98% |
| ICICI Prudential US Bluechip Equity Fund | 6.14% | 15.49% |
| Invesco India – Invesco Global Equity Income FoF | 15.11% | 9.08% |
| Edelweiss Europe Dynamic Equity Offshore Fund | 14.40% | 7.59% |
| Aditya Birla Sun Life International Equity Plan A | 2.76% | 10.00% |
| Invesco India – Invesco Pan European Equity FoF | 24.74% | 5.91% |
| Nippon India US Equity Opportunities Fund | -4.37% | 12.07% |
Note: Mutual fund investment is subject to market risks. Please read all scheme related documents carefully before investing.
Data as of: 07 March 2023
Key Information About Top Funds
DSP World Mining Fund
- Manages Assets of Rs. 201 Cr (AUM)
- Fund’s expense ratio is 1.5%
- 5-year returns are 18.53%
- It has delivered an average of 4.66% per year since launch.
Edelweiss US Value Equity Offshore Fund
- Manages Assets of Rs.90 Cr (AUM)
- It has delivered an average return of 11.04% since inception
Aditya Birla Sun Life Commodity Equities – Global Agri Fund
- It has given a CAGR/ Annualized return of 7.96% since its launch
- Expense ratio: 1.29%
- Manages Assets of Rs. 16 cr. (AUM)
DSP US Flexible Equity Fund
- Manages Assets of Rs.764 Cr (AUM)
- The fund has given a Annualized return of 15.2% since its launch
ICICI Prudential US Bluechip Equity Fund
- The fund has given a Annualized return of 16.35% since its inception
- Manages Assets of Rs. 2,370 cr.
- Exit load: 1.0%
Invesco India – Invesco Global Equity Income FoF
- The fund has given Annualized return of 8.75% since inception
- Manages Assets of Rs. 12 cr (AUM).
- Exit load: 1.0%
Edelweiss Europe Dynamic Equity Offshore Fund
- The fund has given an Annualized return of 6.15% since its inception
- Manages Assets of Rs. 84 cr. (AUM)
- Exit load: 1.0%
Aditya Birla Sun Life International Equity Plan A
- The fund has given an annualized return of 10.38% since inception
- Manages assets of Rs. 110 cr.
- Exit load: 1.0%
Invesco India – Invesco Pan European Equity FoF
- The fund has given an annualized return of 5.39% since inception
- Manages assets of Rs. 37 cr.
- Exit load: 1.0%
Nippon India US Equity Opportunities Fund
- The fund has given an annualized return of 12.54% since inception
- Manages assets of Rs. 551 cr.
- Exit load: 1.0%
Note: The data was updated on 27 Feb 2023
Tax on International Mutual Funds
International mutual funds are taxed in the same way as local debt or fixed-income funds in India. Mutual funds held for less than a three-year period are classified as short-term. If the investments are held for more than 36 months, they are termed as long-term funds. Short-term capital gains on international mutual funds are taxed as per your applicable income tax slab. For the investment held for more than 36 months, the investor will be eligible for indexation benefits. Long-term capital gains arising from the schemes are taxed at 10% without indexation and 20% with indexation.
Also Read: NRI Capital Gains Tax on Shares 2022
SBNRI is an authorised Mutual Fund Distributor platform & registered with Association of Mutual Funds in India (AMFI). ARN No. 246671
Before investing in the Indian market, NRIs must consult market experts to make informed decisions. You can get detailed mutual fund advisory from experts at SBNRI. You can download SBNRI App from the Google Play Store or App Store to ask any questions related to mutual fund investment, NRI account opening online and tax filing in India. To ask any questions related to Mutual Funds, click on the button below. Also visit our blog and YouTube channel for more details.
FAQs
It depends on your investment goals and risk tolerance. Investment in international mutual funds could offer higher returns, but investment in such kinds of funds involves higher risk.
The process of investment in international mutual funds is the same as investment in other mutual funds in India. You can invest in INR and in return you will get units of the funds. The mutual fund company invests that money in the stocks of companies listed on exchanges abroad.
While it depends on your investment goals and risk tolerance, below are the top 5 international mutual funds based on the previous performance:
– PGIM India Global Equity Fund
– Nippon India US Equity Fund
– Principal Global Opportunities Mutual Fund
– Aditya Birla Sun Life Mutual Fund
– ICICI Prudential Mutual Funds
International mutual funds are equity funds that invest in stocks of companies. So, you need to stay invested for at least 5 years.
