6 international mutual funds reopen for lump sum, SIPs: Should you invest now? – Money News

Of 60 overseas mutual funds, Baroda BNP Paribas Aqua was the only option available to those who wanted to invest in an international fund until September 23. 

Nonetheless, two AMCs have started taking contributions again, one on September 24 and the other on September 28. 

According to Value Research, Aditya Birla Sun Life Mutual Fund has announced the start of new subscriptions in three international schemes on September 24, with the daily ceiling for new and existing subscriptions, including lump sum, switch-ins, SIPs, and STPs, set at Rs 1 crore per PAN.

On the other hand, as of September 28, Invesco Mutual Fund has started accepting investments in three overseas funds. With a daily restriction of Rs 10 lakh per PAN, investors can make investments through lump-sum investments, switch-ins, and new SIP, STP, or IDCW transfer registrations. 

Here is what investors need to know about the performance of these six international funds and the reasons behind the closure and reopening of international schemes by the respective AMCs.

International funds open for lump sums and new SIPs

Lump-sum returns

Source: Fund factsheet. Data as of July 2026

SIP-performance

Source: Value Research as of 29th September 2026

How has the international fund performed against other categories?

Value Research data as of September 29, 2026, shows that across the 1, 3, and 5-year periods, international mutual fund categories have produced much higher returns than the majority of main Indian equity fund categories. 

According to the data, over the highlighted periods, overseas funds have outperformed not only large-cap categories but also higher-risk segments like small-cap and mid-cap funds. 

Investors must go beyond the headline return before making an investment because international funds carry risks such as currency fluctuations, market valuations, geopolitical shifts, inflation, interest rate risks, underlying fund risks, liquidity risks, regulatory risks, and more.

Source: Value Research as of 29th September, 2026

International mutual funds: Why do schemes close and reopen?

The reopening of international mutual fund schemes depends largely on whether there is capacity available under the RBI’s overseas investment limit. 

The mutual fund industry has a $7 billion limit for investing in international stocks. Once that limit is reached, fund houses have to stop accepting fresh investments in international schemes.

The situation can change when a fund sees outflows or when market movements create additional capacity under the overall limit. Some funds with capacity available have therefore reopened their schemes for fresh investments.

International funds reopen: Opportunity or risk?

It largely depends on what you are investing for and your risk appetite. International funds can add diversification to a portfolio, but the decision should be linked to your overall objective. 

For someone whose primary objective is diversification, having some international exposure can make sense. At the same time, the Indian equity market itself offers diversification across sectors, market capitalisations, and themes. International exposure can therefore be seen as an additional layer of diversification rather than the only way to diversify.

“A stronger case for international exposure comes when there is a specific future requirement for foreign currency. For instance, if a child may study abroad in the future, allocating a portion of the portfolio to international investments can help prepare for a potential dollar-denominated expense,” said Arjun Guha Thakurta, Executive Director at Anand Rathi Wealth. 

The forward-looking picture also matters. 

“Indian equities are currently trading at better valuations than several international equity markets, while the IMF forecasts point to nominal growth of around 10–10.5% for India compared to 3–3.5% for the global economy. Indian equities have also underperformed international markets over the past two years, which brings the possibility of mean reversion into the picture,” stated Thakurta. 

So, the reopening of an international fund can provide an opportunity to add global diversification, particularly when there is a genuine foreign-currency requirement. 

For someone investing primarily for returns, the relatively better valuations and stronger growth outlook in India make Indian equities worth considering.

What should investors do?

Existing investors do not need to take any specific action just because a scheme has reopened. They can continue with their existing investments based on their original investment objective.

For new investors, the decision depends on whether international exposure fits their financial goals and risk appetite. 

For international funds, a lump sum investment can make more sense when a scheme reopens for fresh investments. These funds may close again if the overseas investment limit is reached.

Some schemes may continue allowing SIPs after reopening, while others may place restrictions on both SIPs and lump sum investments. 

So, if you already have the money available and the fund fits your investment objective, a lump sum allocation can be considered while the scheme is open.

Disclaimer: This article is for informational purposes only and should not be construed as investment, financial, tax, or legal advice. Any illustrations, examples, or return projections used in this article are for explanatory purposes only and do not guarantee actual investment outcomes. The views and opinions expressed by experts quoted in this article are their own and should not be considered investment recommendations. Readers should consult a qualified professional before making any financial decisions. 

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