The International Edge: Funds That Turned Headwinds into Tailwinds

Updated: December 02, 2025 12:42

Image Source: The Economic Times

Four international mutual funds have delivered over 30% CAGR in the past three years, outpacing India’s Nifty by a wide margin, driven by global tech and semiconductor trends. These funds highlight the benefits of global diversification for Indian investors seeking growth amid domestic market slowdowns.

As domestic markets face headwinds, a select group of international mutual funds has emerged as standout performers, posting stellar three-year CAGRs well above 30%—a remarkable feat when compared to India’s Nifty, which managed just 12.93% over the same period. These funds, riding on the wave of global technology and innovation, have proven to be resilient engines of growth, even as India’s equity markets grappled with slower momentum and increased volatility.

Key Highlights

Mirae Asset NYSE FANG+ ETF FoF led the pack with a three-year CAGR of 63.73%, thanks to its concentrated exposure to US tech giants like Facebook, Amazon, Netflix, Google, and Tesla. The fund’s NAV stands at Rs 36.07, with an AUM of Rs 2,624 crore.
Nippon India Taiwan Equity Fund delivered a CAGR of 38.19%, driven by Taiwan’s 1semiconductor and electronics manufacturing boom. Its NAV is Rs 18.39, and the fund size is Rs 2,612 crore, with technology and industrials forming the bulk of its portfolio.
Edelweiss US Technology Equity FoF achieved a three-year CAGR of 35.57%, offering near-direct exposure to US tech hardware, cloud, software, and AI companies through its feeder structure. The NAV is Rs 33.71, with an AUM of Rs 346.96 crore.
Motilal Oswal Nasdaq 100 FoF clocked a CAGR of 34.40%, making it one of the largest and most established international options for Indian investors. The fund invests almost entirely in the Nasdaq 100 ETF, with a NAV of Rs 49.03 and an AUM of Rs 5,253 crore.

Investor Takeaway:

These funds exemplify how global diversification, particularly into technology and innovation-driven markets, can add a robust growth engine to portfolios during periods of domestic market sluggishness. Their success is largely attributed to the strong global tech cycle, which rewarded investors who maintained exposure despite volatility. These schemes are best suited for those comfortable with overseas themes, currency swings, and sector concentration.

Source: Financial Express, MySIPonline, AngelOne

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