10 Best International Mutual Funds to Invest in 2021

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. Also known as foreign funds, many international mutual funds are fund of funds schemes. Due to volatile local markets and ups and downs in an economy, international mutual funds have become popular among investors in the past few years. Here are the 10 best international mutual funds for individuals looking to participate in the international market. Residents as well as NRIs can invest in these funds.

10 Best International Mutual Funds 2021
10 Best International Mutual Funds 2021

Also Read: Mutual Funds for NRIs from USA/Canada to Invest in India

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

10 Best international mutual funds to invest in 2021

Here are some of the top performing international mutual funds listed below: 

  • 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
  • DSP BlackRock Mutual Fund
  • Edelweiss Europe Mutual Fund
  • Invesco India Feeder Mutual Fund
Fund1-Year Return3-Year Returns
PGIM India Global Equity Opportunities Fund27.5730.6
Nippon India US Equity Opportunities Fund25.3519.81
Aditya Birla Sun Life International Equity Fund – Plan B44.910.8
Principal Global Opportunities Fund37.714.4
Aditya Birla Sun Life Commodity Equities Fund – Global Agri Plan33.48.1
ICICI Prudential US Bluechip Equity Fund31.719.4
DSP BlackRock World Mining Fund31.622.2
Edelweiss Europe Dynamic Equity Off-Shore Fund31.311.7
Invesco India Feeder  – Invesco Plan European Equity Fund305.9
DSP BlackRock US Flexible Equity Fund29.716.6
10 Best international mutual funds to invest in 2021

Key information about top funds

PGIM India Global Equity Opportunities Fund

Key details of PGIM India Global Equity Opportunities Fund Direct – Growth:

  • Manages Assets of 1,371 Cr (AUM)
  • Fund’s expense ratio is 1.39% 
  • 1-year direct growth returns are 29.08% 
  • It has returned an average of 12.72% per year

Nippon India US Equity Opportunities Fund

Key details of Nippon India US Equity Opportunities Fund:

  • 1-year direct returns on Nippon India US Equity Opportunities Fund are 26.95%
  • It has returned an average return of 17.43%

Aditya Birla Sun Life International Equity Fund – Plan B

Key details of Aditya Birla Sun Life International Equity Fund:

  • It has given a CAGR/ Annualized return of 7.2% since its launch
  • The fund has ranked 39 in the global category
  • It has given annual returns of average of 15.1%, 8.1% and -5.5% in 2020, 2019 and 2018 respectively

Principal Global Opportunities Fund

Key details of Principal Global Opportunities Fund:

  • The fund has given a CAGR/ Annualized return of 9.1% its launch
  • The fund ranked 8 in the global category
  • It has given annual returns of 16.5%, 32.5% and -15.5% in 2020, 2019 and 2018 respectively 

Aditya Birla Sun Life Commodity Equities Fund – Global Agri Plan 

Key details of Aditya Birla Sun Life Commodity Equities Fund:

  • The fund has given a CAGR/ Annualized return of 8.9% since its inception
  • The fund has ranked 25 in the global category
  • It has given annual returns of 1.4%, 17.6% and -8.1% in 2020, 2019 and 2018 respectively

ICICI Prudential US Bluechip Equity Fund

Key details of ICICI Prudential US Bluechip Equity Fund: 

  • The fund has given a CAGR/ Annualized return of 18% since inception
  • The fund has ranked 7 in the global category
  • It has given annual returns of 18.6%, 34.3% and 5.2% in 2020, 2019 and 2018 respectively

DSP BlackRock World Mining Fund 

Key details of DSP BlackRock World Mining Fund: 

  • The fund has given a CAGR/ Annualized return of 3.1% since its inception
  • The fund has ranked 19 in global category
  • It has given annual returns of 34.9%, 21.5% and -9.4% in 2020, 2019 and 2018 respectively

Edelweiss Europe Dynamic Equity Off-shore Fund 

Key details of Edelweiss Europe Dynamic Equity Off-shore Fund: 

  • The fund has given a CAGR/ annualized return of 6.3% since inception
  • The fund has ranked 22 in the global category
  • It has given annual returns of 13.5%, 22.9% and -12.2% in 2020, 2019 and 2018 respectively

Invesco India Feeder- Invesco Pan European Equity Fund 

Key details Invesco India Feeder- Invesco Pan European Equity Fund: 

  • The fund has given a CAGR/ Annualized return of 3.8% since inception
  • The fund has ranked 20 in global category
  • It has given annual returns of 1.6%, 17.2% and -11.2% in 2020, 2019 and 2018 respectively

DSP BlackRock US Flexible Equity Fund 

Key details of DSP BlackRock US Flexible Equity Fund: 

  • The fund has given a CAGR/ Annualized return of 16.8% since its inception
  • The fund has ranked 3 in the global category
  • It has given annual returns of 22.6%, 27.5% and -1.1% in 2020, 2019 and 2018 respectively

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 2021

NRI Investment in Mutual Funds | Expert Advice | Portfolio Services & Recommendations

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