Indian investors have used international funds, also sold as global or overseas funds, to own companies such as Apple, Microsoft and Nvidia, and to spread risk beyond one economy and one currency. In 2026 the bigger question is whether you can invest at all. Every global fund in the table below was closed or limited for new money when we checked in September 2026. This guide compares five well-known foreign funds on returns, costs and status, then explains why they close, what options remain, and how the tax works.
What are international mutual funds?
International mutual funds are Indian schemes that invest your rupees in shares listed outside India, mostly in the US. You buy and redeem in rupees through a normal Indian folio, and the fund house handles the currency conversion and the overseas holding.
Indians buy them for two reasons. The first is diversification: Indian shares depend on one economy, and many of the world's largest technology and consumer companies are listed abroad. The second is dollar exposure. When the rupee weakens against the dollar, the rupee value of US holdings rises, and when the rupee strengthens, it falls. If you expect costs in dollars later, such as a child's education abroad, that link can work in your favour.
International, global or foreign funds: same thing?
In India, mostly yes. Fund houses and investment apps use "international", "global", "foreign" and "overseas" for the same kind of scheme: an Indian mutual fund that puts most of its money in shares listed abroad. SEBI's rules treat them as schemes investing overseas, and they all draw on the same overseas investment limits, including the US$7 billion industry-wide cap explained below.
Many of them are funds of funds, which buy an ETF or a foreign fund that holds the shares instead of holding the shares themselves. One thing to check: a fund called "global" may spread its money across many countries, while some "international" funds hold only US shares. The country split in the factsheet tells you which.
Fund of funds, feeder funds and direct funds
The funds in this guide reach US shares in three ways:
- Fund of funds that buy an Indian-listed ETF. Motilal Oswal Nasdaq 100 FoF buys units of Motilal Oswal Nasdaq 100 ETF, and Mirae Asset NYSE FANG+ ETF FoF buys Mirae Asset NYSE FANG+ ETF. The ETF holds the US shares and tracks the index.
- Feeder funds that buy one foreign fund. Edelweiss US Technology Equity FoF invests mainly in JPMorgan Funds - US Technology Fund. Franklin U.S. Opportunities Equity Active FoF puts at least 95% of its assets in Franklin U.S. Opportunities Fund, an overseas fund run by the same group.
- Funds that buy US shares directly. ICICI Prudential US Bluechip Equity Fund holds shares of companies listed on the NYSE and Nasdaq, chosen by its own fund managers.
There are two routes outside mutual funds: buying an international ETF on the NSE or BSE, or sending money abroad under the RBI's Liberalised Remittance Scheme and buying through an overseas broker. Both are covered further down.
Why International Funds Keep Closing
SEBI caps how much Indian mutual funds can invest abroad. Under SEBI's Master Circular for Mutual Funds (27 June 2024), based on a circular of 3 June 2021:
- Each fund house can invest up to US$1 billion overseas, within an industry-wide limit of US$7 billion.
- Separately, each fund house can invest up to US$300 million in overseas ETFs, within an industry limit of US$1 billion.
When a fund house nears its limit, it stops taking new money into its overseas schemes. Existing investors stay invested. We found no increase in these limits since then, and 2026 market reports describe them as still binding.
Closures can reverse and then return. Nippon India Mutual Fund issued a notice resuming subscriptions in some overseas schemes on 17 March 2026, and another suspending them again on 17 April 2026 (referenced in its factsheets).
Top 5 International and Global Funds in India: Status and Returns
| Fund (Direct, Growth) | What it holds | 3 years (a year) | 5 years (a year) | AUM (₹ Cr) | Status for new money |
|---|---|---|---|---|---|
| Mirae Asset NYSE FANG+ ETF FoF | 10 large US tech and internet stocks | 57.20% | 34.66% | 2,707 | Lump sums and new SIPs not accepted (Groww, 29 Sep 2026) |
| Motilal Oswal Nasdaq 100 FoF | Nasdaq-100 index | 38.75% | 23.91% | 8,354 | New SIP registrations stopped since 10 Dec 2024 (existing SIPs continue); lump sums not accepted (Groww) |
| Edelweiss US Technology Equity FoF | US technology stocks (active) | 33.10% | 16.43% | 4,348 | Fresh SIPs suspended 10 Jul 2026; existing SIP instalments suspended from 11 Aug 2026; lump sums not accepted |
| ICICI Prudential US Bluechip Equity | Large US companies (active, S&P 500 benchmark) | 17.24% | 13.07% | 4,071 | Lump sums and new SIPs not accepted (Groww, 29 Sep 2026) |
| Franklin U.S. Opportunities Equity Active FoF | US growth companies (active) | 25.15% | 11.45% | 5,955 | Lump sums and switch-ins suspended from 8 Jun 2026; fresh SIPs limited to ₹50,000 per PAN a month |
Returns calculated from AMFI NAVs to 28 September 2026. AUM from the Motilal, ICICI and Franklin factsheets (31 August 2026) and Groww (latest, fetched 29 September 2026). Status from AMC factsheets and notices where a date is shown, otherwise from Groww on 29 September 2026. Groww also showed Franklin's fund closed to SIPs, so confirm with the AMC. Franklin's fund was called Franklin India Feeder – Franklin U.S. Opportunities Fund until 30 May 2025.
What the returns show
- Concentration raised returns and risk. The FANG+ fund holds just 10 stocks and returned the most, but it also fell 43.7% at its worst since September 2021. The Nasdaq 100 FoF fell 30.4% at its worst in the same period.
- Active funds trailed. The three actively managed funds returned 11–16% a year over five years, against about 24% for the passive Nasdaq 100 FoF.
- Rupee moves count. These returns are in rupees, so they include the effect of rupee–dollar exchange-rate moves.
The FANG+ index currently holds Meta, Apple, Amazon, Netflix, Microsoft, Alphabet, Micron, Palantir, NVIDIA and Broadcom, and its members change over time.
Costs come in two layers
A fund of funds (FoF) charges its own fee and also bears the fee of the fund it invests in. Motilal's Nasdaq 100 FoF charges 0.19% (Direct), plus 0.58% for the underlying Nasdaq 100 ETF. Mirae's FANG+ FoF charges 0.04%, plus 0.55% for the underlying ETF. Compare the total, not just the headline figure. See how funds of funds work.
Expense ratio, index and status side by side
| Fund (Direct) | Structure | Index tracked or benchmark | Expense ratio (Direct, 30 Sep 2026) | Open for new money? |
|---|---|---|---|---|
| Mirae Asset NYSE FANG+ ETF FoF | FoF buying an Indian ETF | Tracks the NYSE FANG+ Index | 0.04%, plus 0.55% in the ETF | No |
| Motilal Oswal Nasdaq 100 FoF | FoF buying an Indian ETF | Tracks the Nasdaq-100 Index | 0.19%, plus 0.58% in the ETF | No (SIPs registered before 10 Dec 2024 continue) |
| Edelweiss US Technology Equity FoF | Feeder into JPMorgan Funds - US Technology Fund | Benchmark: Russell 1000 Equal Weighted Technology Index | 0.72%, plus the underlying fund's fee | No (existing SIP instalments also suspended) |
| Franklin U.S. Opportunities Equity Active FoF | Feeder into Franklin U.S. Opportunities Fund | Benchmark: Russell 3000 Growth Index | 0.53%, plus the underlying fund's fee | SIPs only, up to ₹50,000 per PAN a month (factsheet); no lump sums |
| ICICI Prudential US Bluechip Equity | Buys US shares directly | Benchmark: S&P 500 | 1.19% | No |
Expense ratios are the Direct-plan total expense ratios each fund house reported to AMFI for 30 September 2026. The ETF fees for Mirae and Motilal are from their August 2026 factsheets. Status is from the table above. Index and benchmark are from each scheme's factsheet.
What Options Remain
1. If you already hold these funds
Your units remain invested and you can redeem them as normal. Whether your SIP continues depends on the fund: Motilal's existing SIPs continue, while Edelweiss has suspended existing instalments. Check your statement or the AMC's notice.
2. Watch for reopenings
Fund houses reopen when they get room under their limits, sometimes only for a few weeks. We have not confirmed any international fund as fully open from an AMC document, so we do not list one here. Check the AMC's latest notice before you invest.
3. Indian equity funds that hold some foreign stocks
Some Indian equity funds hold a slice abroad. Parag Parikh Flexi Cap Fund had 11.05% in overseas stocks at 31 August 2026 (Alphabet, Microsoft, Amazon and Meta), with the rest in India. Parag Parikh ELSS Tax Saver Fund is India-focused. A small foreign slice adds some diversification but is not the same as a dedicated international fund.
4. US-stock ETFs listed in India, and the premium risk
You can buy ETFs such as Motilal Oswal Nasdaq 100 ETF (MON100) or Mirae Asset NYSE FANG+ ETF (MAFANG) on the stock exchange. But because the US$1 billion ETF limit is full, fund houses cannot create new units, so buyers bid the price above the ETF's actual value (its NAV). On 26 April 2026, Business Today reported MON100 trading at a 19.22% premium and MAFANG at 22.53%. On 27 September 2026, MON100's price was still roughly 13% above its most recent published NAV.
If you pay a premium and it later shrinks, for example when the limits are raised, you can lose money even if the US market doesn't fall. Before you buy, compare the price with the iNAV (the indicative NAV that SEBI requires fund houses to publish). See equity ETFs beyond the Nifty 50.
5. Investing abroad directly under LRS
The RBI's Liberalised Remittance Scheme (LRS) lets a resident send up to US$250,000 abroad each financial year, which can be used to buy US stocks and ETFs through an overseas broker. This avoids the mutual fund limits, but it comes with its own costs, tax collection and reporting rules. See our guides to investing in US stocks under LRS and TCS on foreign remittances.
How International Funds Are Taxed
For units sold from 1 April 2025:
- International funds of funds and feeder funds: held more than 24 months, gains are taxed at 12.5%. Held 24 months or less, gains are taxed at your income slab rate.
- Funds that hold US shares directly (such as ICICI Prudential US Bluechip Equity): the same as funds of funds. They don't keep 65% in Indian shares, so they don't count as equity funds for tax.
- International ETFs listed in India (such as MON100): held more than 12 months, 12.5%; otherwise slab rate. The ₹1.25 lakh yearly exemption does not apply.
- Indian equity funds with some foreign stocks (at least 65% in Indian shares, such as Parag Parikh Flexi Cap): 20% within 12 months; 12.5% after 12 months on gains above ₹1.25 lakh a year.
Between April 2023 and March 2025, international funds bought after 1 April 2023 were taxed at slab rate however long you held them. From 1 April 2025 the law limited that treatment to funds with more than 65% in debt, and the Income-tax Act, 2025, in force from 1 April 2026, keeps the same rule. See mutual fund tax in 2026.
How Much International Exposure?
Many diversified portfolios hold 10–25% of equity abroad, but the right share depends on your goals, and on what you can actually buy today. Concentrated funds like FANG+ are best kept to a small part of that. International exposure is about spreading risk, and it can trail Indian shares for years at a time. Our financial planner can help you set a target.
Who international funds suit
They fit best if you are investing for a goal many years away, already have a core of Indian equity, and can sit through long stretches when US shares trail Indian ones or the rupee strengthens. They also suit anyone who expects to spend in dollars later.
They fit less well for short-term goals or an emergency fund. They are also awkward if you want to add a fixed amount every month: with most of these funds closed to new SIPs, you may not be able to. If the only way in is an ETF trading well above its NAV, buying at that premium adds a risk the US market doesn't.
This guide explains how to compare these funds. It is not a recommendation to buy any specific fund.
Related guides
Run your numbers: if you already hold one of these funds, check its real return in the mutual fund portfolio analyzer. If your new money is going into an Indian fund with some foreign stocks instead, the step-up SIP calculator shows what a SIP that rises with your salary could grow to, and the lumpsum calculator does the same for a one-time amount.
