International Funds Deliver Up to 58% Returns in One Year—Here Are Funds Open for Subscription
Strong One-Year Performance, but Limited Fresh Investment Opportunities
International mutual funds have delivered stellar returns in the past year, with top funds giving up to 58% returns, making them an attractive diversification option for Indian investors. Despite this outperformance, only 26 out of 70 international funds are currently open for new subscriptions, as regulatory restrictions cap the industry’s total foreign investment.
Why Are Most International Funds Closed for New Investments?
- Regulatory Limits:
In 2022, SEBI directed mutual funds to halt fresh investments in overseas equities to prevent breaching the Reserve Bank of India’s $7 billion cap on foreign investments by the industry.
Each fund house is also capped at $1 billion for foreign stocks and $1 billion for overseas ETFs. - Current Status:
Some funds sporadically reopen for subscriptions as headroom frees up, but top-performing funds tend to stay closed once they near the limit. - ETF Option:
While new units in some ETFs can’t be created, you can still buy/sell these funds on exchanges.
Top Performing International Funds (1-Year Returns)
| Fund Name | 1-Year Return (%) | 3-Year (%) | 5-Year (%) | AUM (₹ Cr) |
|---|---|---|---|---|
| Mirae Asset Hang Seng TECH ETF FoF | 57.8 | 9.8 | NA | 87 |
| Mirae Asset NYSE FANG+ETF FoF | 50.7 | 53.2 | NA | 1,925 |
| Mirae Asset Hang Seng TECH ETF | 49.0 | 5.8 | NA | 365 |
| Nippon India ETF Hang Seng BeES | 42.5 | 9.0 | 3.1 | 865 |
| Mirae Asset S&P 500 Top 50 ETF FoF | 35.2 | 31.1 | NA | 612 |
| Invesco India Global Consumer Trends FoF | 30.8 | 16.2 | NA | 280 |
| Edelweiss Europe Dynamic Equity Off-shore | 29.0 | 24.1 | 16.1 | 110 |
| Invesco India Global Equity Income FoF | 26.8 | 23.3 | 19.2 | 42 |
| Mirae Asset NYSE FANG+ ETF | 26.7 | 44.8 | NA | 2,876 |
| Aditya Birla SL Intl. Equity Fund | 26.2 | 14.0 | 11.6 | 207 |
Note: As of July 9, 2025. Many of these top performers are currently closed for fresh investments. ETFs can still be traded via exchanges.
International Funds Currently Open for Investment
While the list of open funds is shorter, 26 international funds are still accepting fresh investments. Here are some options and their investment restrictions:
| Fund Name | Subscription | SIP/Lumpsum | Limit Per PAN Per Day |
|---|---|---|---|
| ABSL Global Emerging Opportunities Fund | Open | Both | No Limit |
| ABSL Global Excellence Equity FoF | Open | Both | No Limit |
| Axis Global Equity Alpha FoF | Open | Both | No Limit |
| Axis Global Innovation FoF | Open | Both | No Limit |
| Axis Greater China Equity FoF | Open | Both | No Limit |
| Baroda BNP Paribas Aqua FoF | Open | Lumpsum | ₹5 lakh |
| Edelweiss ASEAN Equity Off-Shore Fund | Open | Both | ₹10 lakh |
| Edelweiss Emerging Markets Opp. Equity Offshore | Open | Both | ₹10 lakh |
| Edelweiss Europe Dynamic Equity Off-shore | Open | Both | ₹10 lakh |
| Edelweiss Greater China Equity Off-Shore Fund | Open | Both | ₹10 lakh |
| Franklin Asian Equity Fund | Open | Both | No Limit |
| Invesco India Global Consumer Trends FoF | Open | Both | No Limit |
| Invesco India Global Equity Income FoF | Open | Both | No Limit |
| PGIM India Emerging Markets Equity FoF | Open | Both | No Limit |
| PGIM India Global Equity Opp FoF | Open | Both | No Limit |
| Kotak Global Innovation FoF | Open | Both | No Limit |
(List not exhaustive. For the full list, refer to fund house websites or Moneycontrol.)
Note: Fund houses can suspend new investments if they get close to their overseas cap. Some funds have daily investment limits (e.g., ₹10 lakh per PAN per day for Edelweiss funds).
How to Invest Now?
- SIP and Lump Sum:
Most open funds allow both SIPs and lump-sum investments. - Daily Limits:
Some funds have a per-PAN daily limit (e.g., ₹5-10 lakh), while others have no cap. - ETF Route:
For funds closed to new creation, you can trade units on the stock exchange—though liquidity and pricing can vary.
Industry View: Time to Relax Overseas Limits?
With ₹58,000 crore already invested in overseas stocks by Indian mutual funds, the industry has renewed calls to raise the RBI-mandated limit to let investors diversify more freely in global markets.
Bottom Line
- International funds have delivered up to 58% returns in the past year, but most top-performing funds are closed to new investments.
- Still, several international funds are open for fresh investments, often with some daily limits.
- Investors should check subscription status and restrictions before investing and consider diversifying globally—especially with markets at different cycles.
