Why International Mutual Funds are Vital in India for 2025
As global markets show robust performance in 2025, Best International Mutual Funds offer Indian investors a direct gateway to this growth. By investing abroad, you can access global powerhouses in technology, healthcare, and green energy, while also hedging against domestic risks.
This guide, current as of July 6, 2025, provides essential information for retail investors, wealth advisors, and HNIs to navigate the best international mutual fund options available in India.
Advantages of Investing Internationally
- Risk Mitigation: Diversify your portfolio to offset potential downturns in the Indian market. In 2024, while some domestic funds lagged, top international funds delivered exceptional growth.
- Return Enhancement: Access global innovation hubs like the U.S. technology sector, which has delivered strong long-term returns (e.g., a 3-year CAGR of over 24% for some funds).
- Currency Play: A depreciating rupee can boost your INR-denominated returns, providing an additional layer of potential gains.
- Regulatory Ease: Recent updates by SEBI have streamlined the process for overseas investments, making it more accessible for retail investors.
Criteria for Choosing the Best Funds
Our selection is based on the following key metrics:
- Assets Under Management (AUM): Indicates fund stability and liquidity. We looked for funds with substantial AUM.
- Benchmark Outperformance: Consistent alpha generation over 3-year and 5-year periods.
- Expense Ratio: Lower costs are crucial for maximizing long-term returns.
- Currency Hedging Options: Availability of options to mitigate rupee fluctuations.
Top 10 International Mutual Funds in India: 2025 Analysis
Explore the leading international funds available to Indian investors. Select a fund from the list to view its detailed profile. This analysis is based on data from leading platforms as of July 2025.
Select a Fund to View Details
Comparative Visuals
3-Year CAGR Comparison (%)
Expense Ratio Comparison (%)
Assets Under Management (AUM in ₹ Cr)
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Frequently Asked Questions (FAQ)
What is currency risk in international mutual funds?
Currency risk is the potential for investment losses due to changes in the exchange rate between the Indian Rupee and the foreign currency in which the fund's assets are denominated. It can impact your final returns positively or negatively.
What is the minimum investment amount?
The minimum investment varies by fund, but many allow you to start a Systematic Investment Plan (SIP) with as little as ₹500, such as the Edelweiss US Technology FoF.
Do these funds have exit loads?
Yes, many funds have an exit load to discourage short-term trading. For example, the Motilal Oswal Nasdaq 100 FOF charges 1% if you redeem within 15 days.
What is the recommended investment horizon?
Given that these are equity-based funds and can be volatile, a long-term investment horizon of at least 5 years is generally recommended to ride out market fluctuations.
Can I invest through a SIP?
Absolutely. Most international mutual funds offer the SIP facility, allowing for disciplined, systematic investment with amounts starting as low as ₹500.
