For Indian investors, international mutual funds have long offered an easy route to geographical diversification. But investing globally hasn’t been simple lately.
As Value Research points out, regulatory limits have restricted flows. The mutual fund industry as a whole can invest only up to $7 billion in foreign equities.
Each fund house has a $1 billion cap. Additionally, investments in overseas ETFs are capped at $1 billion industry-wide and $300 million per AMC.
That’s made fund selection and timing even more critical.
“In the week following the tariff announcement, international mutual funds saw substantial losses,” said Mayank Misra, Vice President, Product Management, Mutual Funds, INDmoney. “But the 90-day pause has allowed some breathing room, and markets have responded with cautious optimism.”
The correction in global equities has made some high-quality funds more attractive.
Shruti Jain, Chief Strategy Officer, Arihant Capital Markets, noted that select US focused funds, especially those linked to the Nasdaq, and China-centric exposures like MHK Tech and Hang Seng Bees, now offer a better entry point.
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Short-term volatility remains likely as markets assess the full economic impact of Trump’s proposed tariffs.
However, the medium- to long-term outlook depends on whether tensions escalate or ease.
Any positive shift in global sentiment—or fiscal stimulus from affected countries—could drive a rebound in tech-heavy or consumption-driven funds.
What should investors do (as mentioned by Mayank Misra of INDmoney)?
- Avoid panic exits: Selling during a dip locks in losses.
- Rebalance: Use this opportunity to review global allocations in your portfolio.
- Invest via SIPs: Systematic investments help average out volatility.
- Diversify smartly: Consider gold or domestic hedges for global uncertainty.
Despite headwinds, long-term investors with the right risk appetite may find value in staying the course.
Here are some of the international mutual funds currently open for investment:
| Fund Name | Asset Management Company (AMC) | Assets Under Management (AUM) |
| Franklin India Feeder – Franklin US Opportunities Fund | Franklin Templeton | ₹3,892 crore |
| Edelweiss US Technology Equity Fund of Fund | Edelweiss | ₹2,816 crore |
| Edelweiss Greater China Equity Offshore Fund | Edelweiss | ₹1,901 crore |
| PGIM India Global Equity Opportunities Fund | PGIM India | ₹1,408 crore |
| Axis Global Equity Alpha Fund of Fund | Axis Mutual Fund | ₹862 crore |
| Kotak Global Innovation Fund of Fund | Kotak Mutual Fund | ₹546 crore |
| Axis Global Innovation Fund of Fund | Axis Mutual Fund | ₹512 crore |
| Axis Greater China Equity Fund of Fund | Axis Mutual Fund | ₹403 crore |
| Invesco India – Invesco Global Consumer Trends Fund of Fund | Invesco India | ₹311 crore |
| Aditya Birla Sun Life Global Emerging Opportunities Fund | Aditya Birla Sun Life Mutual Fund | ₹256 crore |
(Source: Value Research)
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