In 2026, Indian mutual funds offering foreign exposure are primarily categorized as International Mutual Funds or Global Funds. These typically operate as “Funds of Funds” (FoFs) that invest in overseas exchange-traded funds (ETFs) or parent funds managed globally.
Below is a breakdown of the prominent Indian mutual funds investing in foreign markets by region and theme.
RBI has capped overseas investments by Indian mutual funds at:
USD 7 billion at the industry level
USD 1 billion per AMC (Separate limits exist for overseas ETFs)
Hidden Gems: 5 Overseas Funds You Can Still Invest in on Groww Today
1. US-Focused Funds
The US market remains the most popular destination for Indian international funds, offering exposure to the S&P 500 and NASDAQ 100.
| Fund Name | Type/Theme | Key Exposure |
| Motilal Oswal Nasdaq 100 FoF | Index/Passive | NASDAQ 100 Index (Tech-heavy) |
| Motilal Oswal S&P 500 Index Fund | Index/Passive | S&P 500 Index (Broad US Market) |
| ICICI Pru US Bluechip Equity Fund | Active | Large-cap US “Blue-chip” companies |
| Edelweiss US Technology Equity FoF | Sectoral/Tech | JP Morgan US Technology Fund |
| Kotak US Specific Equity Passive FoF | Index/Passive | Large-cap US equity indices |
| Franklin India Feeder – US Opp. | Active | Growth-oriented US companies |
| Bandhan US Specific Equity Active FoF | Active | Diverse US equity portfolio |
2. Global & Multi-Regional Funds
These funds diversify across multiple countries rather than focusing solely on the US.
- PGIM India Global Equity Opportunities: Invests in global growth companies across developed and emerging markets.
- Axis Global Equity Alpha FoF: Focuses on high-conviction global stocks with a “growth at a reasonable price” strategy.
- HDFC Developed World Overseas Equity: A passive fund covering a wide range of developed markets outside of India.
- Aditya Birla Sun Life International Equity: Multi-country exposure focusing on global market leaders.
3. Region-Specific & Emerging Market Funds
If you want to target specific economies outside the US:
- Greater China: Axis Greater China Equity FoF and Edelweiss Greater China Equity Off-shore Fund.
- Japan: Nippon India Japan Equity Fund.
- Europe: Edelweiss Europe Dynamic Equity Offshore and Invesco India Pan European Equity FoF.
- Taiwan: Nippon India Taiwan Equity Fund Direct Growth
- Asia/ASEAN: Edelweiss ASEAN Equity Off-shore and Franklin Asian Equity Fund.
- Emerging Markets: PGIM India Emerging Markets Equity FoF and HSBC Global Emerging Markets Fund.
4. Thematic & Sectoral International Funds
These funds invest in specific global trends rather than geographic regions.
- Technology & AI: Mirae Asset NYSE FANG+ ETF FoF and Mirae Asset Global X Artificial Intelligence & Tech ETF FoF.
- Mining & Commodities: DSP World Gold Mining FoF and ICICI Pru Strategic Metal and Energy Equity FoF.
- Agriculture & Innovation: Axis Global Innovation FoF and DSP Global Innovation Overseas Equity FoF.
Important Considerations for 2026
- RBI Limits: Since early 2022, many international funds have faced intermittent pauses in fresh subscriptions due to the $7 billion industry-wide overseas investment limit set by the RBI. Always check the current status on Groww before planning a lump sum investment.
- Taxation: International mutual funds are generally taxed similarly to debt funds in India. As of recent regulations, gains are often added to your income and taxed at your applicable slab rate if hold less than two years. After 2 years they’re taxed at 12.5% LTCG,
- Currency Risk: Since these funds invest in foreign currencies (like USD), your returns are influenced by the INR-USD exchange rate. If the Rupee depreciates, your returns may increase.
Would you like me to find the specific expense ratios or the latest performance (1-year/3-year returns) for any of these specific funds on Groww?
RBI has capped overseas investments by Indian mutual funds at:
- USD 7 billion at the industry level
- USD 1 billion per AMC (Separate limits exist for overseas ETFs)
“If you are looking to grow a portfolio from ₹1.4 Crore to ₹10 Crore over the next decade, relying solely on the Indian Nifty 50 might not be enough. While the Indian market has shown incredible resilience, the world’s biggest innovation—from AI giants in the US to manufacturing leaders in the ASEAN region—is happening beyond our borders.
Investing in International Mutual Funds from India isn’t just about ‘owning a piece of Apple or Google’; it’s a strategic move to hedge against Rupee depreciation and capture global growth cycles that don’t always align with the Sensex. Whether you are using a platform like Groww to filter for the best ‘Fund of Funds’ (FoF) or looking for passive index exposure through the NASDAQ 100, understanding the tax implications and RBI limits in 2026 is crucial.
In this guide, we break down the top-performing Indian mutual funds that give you direct access to foreign markets, helping you build a truly ‘borderless’ portfolio.”