Passport To Profits: Global Funds For Indian Portfolios

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Indian Investors Are Increasingly Exploring International Mutual Funds To Diversify Their Portfolios Beyond Domestic Markets. These Funds Offer Exposure To Global Giants, Sectoral Leaders, And Emerging Economies. With Market Volatility And Currency Risks In Play, Strategic Global Allocation Can Help Balance Risk And Unlock Long-Term Growth Potential.

Why global diversification matters

In today’s interconnected financial landscape, relying solely on domestic investments can limit growth opportunities. International mutual funds allow Indian investors to tap into global markets—from Silicon Valley’s tech titans to Europe’s luxury brands and Asia’s rising economies. According to Financial Express and Fincash, 2025 has seen a surge in interest for these funds as investors seek to hedge against local market volatility and inflation.

These funds invest in foreign equities, either directly or through feeder funds, offering a chance to benefit from global trends and innovations. They also help mitigate country-specific risks and provide currency diversification.

Top-performing international mutual funds

Several funds have emerged as strong performers in 2025, offering varied exposure across geographies and sectors.

Key highlights:

- Edelweiss US Technology Fund: Focuses on American tech giants like Apple, Microsoft, and Google

- Franklin India Feeder – Franklin US Opportunities Fund: Offers broad exposure to US growth stocks

- ICICI Prudential US Bluechip Equity Fund: Targets large-cap US companies with stable returns

- Nippon India US Equity Opportunities Fund: Invests in high-growth US sectors including healthcare and AI

- PGIM India Global Equity Opportunities Fund: Diversified across developed and emerging markets

- Motilal Oswal Nasdaq 100 ETF: Tracks the Nasdaq 100 index, ideal for tech-heavy exposure

- HSBC Global Investment Fund: Offers access to European and Asian markets

- Axis Global Equity Alpha Fund: Focuses on global leaders across sectors

What investors should consider

While international mutual funds offer diversification, they also come with risks such as currency fluctuations, geopolitical tensions, and regulatory differences. Experts recommend allocating 10–15% of your portfolio to global funds, depending on your risk appetite and investment horizon.

Taxation is another factor—gains from international funds are taxed as debt funds in India, with indexation benefits after three years. Investors should consult financial advisors before making allocations.

Sources: Financial Express, Fincash, Economic Times

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