From FANG+ To Nasdaq 100: Top International Mutual Funds That Are Giving Massive Returns | Savings and Investments News

Indians can invest in international mutual funds- both direct global schemes and Fund of Funds. 

International mutual funds can be a good option for Indian investors looking to diversify beyond domestic markets and benefit from global growth themes- whether it’s US technology, Taiwanese semiconductors or global innovation cycles. These funds help investors reduce portfolio concentration in India and gain exposure to economies, sectors and companies that are otherwise not accessible.

What Are International Mutual Funds?

International mutual funds are schemes that invest in equities and debt instruments outside India. Instead of buying Indian stocks, these funds allocate money to global markets such as the US, Europe, Japan, Taiwan and emerging markets. These funds work in two main formats:

1. Direct Global Funds: The AMC directly buys foreign stocks (e.g., Apple, Nvidia, Tesla, TSMC) or invests in foreign debt markets.

2. Fund of Funds (FoF): A Fund of Funds (FoF) is a scheme that invests in other mutual funds- usually offshore funds. Instead of picking stocks directly, the FoF channels your money into an underlying global fund managed by an international fund manager.

Can Indians Invest In International Mutual Funds?

Yes, Indians can invest in international mutual funds- both direct global schemes and Fund of Funds. FoF international funds have no restrictions from the RBI’s Liberalised Remittance Scheme (LRS) since the overseas investment is made by the AMC, not by you.

Direct international funds and ETFs may temporarily face regulatory limits depending on SEBI/RBI caps on overseas investments by AMCs, but most international FoFs remain open for investment. There is no separate tax category for international funds and they are taxed like debt funds under current rules.

Which Are The Top-Performing International Mutual Funds?

Here are the top-performing international mutual funds based on three-year CAGR, along with portfolio details, key metrics and suitability.

1. Mirae Asset NYSE FANG+ ETF FoF – Direct Plan

This is the strongest performer in the global category with a three-year CAGR of 63.73%, powered by a concentrated basket of major US technology and digital giants. The fund has an NAV of Rs 36.0700 and an AUM of Rs 2,624 crore. Almost the entire portfolio is invested in the Mirae Asset FANG+ ETF, making technology nearly 90% of the exposure. Its expense ratio is just 0.07%, one of the lowest among international FoFs. A Sharpe ratio of 1.97 indicates strong risk-adjusted returns. Managed by Ekta Gala and Ritesh Sheth, this fund suits investors comfortable with sharp movements in FANG+ stocks- which can rise or fall quickly.

2. Nippon India Taiwan Equity Fund – Direct Plan

The scheme has delivered a three-year CAGR of 38.19%, benefiting from Taiwan’s booming semiconductor and electronics manufacturing cycle. Its NAV is Rs 18.3957, with a fund size of Rs 2,612 crore. Technology forms 41.82% of the portfolio, while industrials contribute 32.55%. The top holding, Chroma ATE, holds a 9.07% weight. With a Sharpe ratio of 1.17, this fund offers good risk-adjusted returns compared to peers. It follows a narrow, high-beta theme tied closely to global chip demand cycles.

3. Edelweiss US Technology Equity FoF – Direct Plan

This feeder fund has grown at a three-year CAGR of 35.57%. Its NAV is Rs 33.7139 and AUM is Rs 346.96 crore. Almost 96.08% of the portfolio is invested in the JPMorgan FAS Technology Fund, which provides exposure to US tech across hardware, cloud, software and artificial intelligence. The Sharpe ratio stands at 0.91. Managed by Bhavin Lakhataria and Bhavin Jain, the fund’s performance closely mirrors large-cap US technology trends due to its single feeder structure.

4. Motilal Oswal Nasdaq 100 FoF – Direct Plan

With a three-year CAGR of 34.40%, this is one of the most established international options for Indian investors seeking exposure to the Nasdaq. The NAV is Rs 49.0362 and AUM totals Rs 5,253 crore. Around 99.92% of the fund is invested in the Motilal Oswal Nasdaq 100 ETF, which tracks the largest non-financial companies on the Nasdaq. Its expense ratio is 0.42% and the Sharpe ratio of 1.38 reflects strong risk-adjusted returns. Managed by Pranav Mehta, Rakesh Shetty and Dhrishtk Mehta, the FoF behaves like a direct and efficient bet on the Nasdaq 100.