International mutual funds let Indian investors access global markets for diversification and growth.
Look for funds that are investing in strong economic sectors like technology, healthcare, and energy.
Performance, fund house reputation, and expense ratio play key roles in choosing the right fund.
In 2025, Indian investors are increasingly turning to international mutual funds for diversification and returns that are not tied to the domestic currency. With the pandemic's impact gradually limiting single market access, investors are now taking a step toward developed, emerging markets as a strategy for portfolio stability. Along with the Indian Rupee's gradual depreciation and international indices like the S&P 500 and NASDAQ 100 continuing to mark their growth, investing in the best international mutual funds in India in 2025 is a wise way to achieve a risk-reward ratio that favors both sides.
Investing in the Franklin U.S. Opportunities Fund primarily involves American companies with high innovation capabilities. The fund will focus on mid and large-cap sectors, targeting major technology, healthcare, and consumer service sectors. Investors seeking maximised returns from the current American market growth, especially in large-cap and mid-cap equities, are the ideal candidates for this fund.
This is an actively managed fund that focuses on the United States equities with a particular emphasis on long-term growth of the information technology, healthcare, and finance sectors. It aims at gaining capital by investing in high-quality U.S. corporations with strong fundamentals. The fund combines a disciplined approach and professional management; thus, it offers access to the largest economy and resilient business models operating within it.
The fund invests in leading Chinese companies, as well as those listed in Hong Kong, through the JPMorgan Greater China Fund. It provides an effective opportunity to join one of Asia's prominent markets, targeting the key areas of interest like technology, e-commerce, and manufacturing sectors. The goal of this fund is to capitalise on China's consumption with export-oriented growth while mitigating volatility through diversification.
This fund allocates capital to global equity funds in developed markets including the U.S., European nations, and Japan. A conservative investor's aim for global diversification with a relatively stable return is reflected by their focus on blue-chip multinational companies.
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Investing in large-cap and mid-cap stocks globally, this fund prioritizes innovative leaders in their respective industries. It takes a multi-thematic approach, investing across North America, Europe, and Asia. Suitable for investors with a high risk appetite, it allows targeting superior long-term returns through active management and global exposure to high-growth companies.
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Selecting the right international mutual fund depends on the investor’s time horizon, risk appetite, and geography. For exposure to the U.S. market, Franklin India Feeder – Franklin U.S. Opportunities Fund and Nippon India U.S. Equity Opportunities Fund are both solid options. To diversify across geographical regions, ICICI Prudential Global Stable Equity Fund and PGIM India Global Equity Opportunities Fund can be the best options.
International mutual funds can provide more resilience to a portfolio by leaning less domestically and investing in global innovation and growth.
1. Are international mutual funds risky?
Mutual funds’ dependence on international economic factors exposes them to market and currency risks, but at the same time, it provides the advantage of diversification.
2. How can Indian investors invest in international mutual funds?
Indian investment companies that invest in foreign partner schemes or ETFs provide access to these funds.
3. Do international mutual funds provide better returns than Indian funds?
Not necessarily. They help diversify the portfolio and reduce risk. Returns depend on whether the global market performs and currency movement.
4. What is the taxation on international mutual funds in India?
For taxation purposes, they are classified as debt funds, with a benefit of indexation (tax benefit) for long-term investments over three years.
5. How should I choose the best fund?
Review fund performance over a 3-5 year period, examine the schemes performance , expense ratio and global equity flattening fund exposure before investing.