NOTE: Inflows acceptance is subject to AMC specific guidelines.


1. What are International Funds in mutual funds and how its work?

International funds (also known as overseas or foreign funds) are mutual funds that invest in equities, debt, or ETFs of companies located outside India. These funds provide investors with global diversification.

They invest in either:

  • Direct overseas stocks or bonds
  • Units of global mutual funds/ETFs
     The fund manager may invest directly or through a feeder fund route.


2. Why should I invest in International Funds?

  • Diversification across geographies
  • Exposure to global leaders (like Apple, Amazon, Tesla)
  • Hedge against INR depreciation
  • Participate in themes not available in India (e.g., global tech, pharma, ESG)


3. Are there risks in investing in International Funds?

Yes. Key risks include:

  • Currency fluctuation (INR vs USD)
  • Geo-political or regulatory risks
  • Underperformance of foreign markets
  • Limited control over underlying fund decisions


4. Are there investment limits in International Funds?

Yes. SEBI and RBI cap how much AMCs can invest in overseas securities. These limits may impact fund inflows or SIP registrations if AMC-level limits are breached.


5. How are returns from International Funds taxed in India?

International mutual funds are taxed like non-equity funds:

  • Short-term capital gains (STCG): If held for less than 3 years – taxed as per your income tax slab.
  • Long-term capital gains (LTCG): If held for more than 3 years – taxed at 20% with indexation benefit.


6. Can I invest via SIP in International Funds?

Yes, SIPs are allowed, but may be paused temporarily if the fund reaches regulatory overseas investment limits.


7. Are International Funds suitable for all investors?

They are best suited for:

  • Moderately aggressive to aggressive investors
  • Long-term investors (3–5 years minimum horizon)
  • Those seeking global diversification


8. What is the minimum investment amount in international mutual funds?

It varies by fund house, but typically:

  • Lump sum: ₹5,000 or ₹10,000
  • SIP: Starts from ₹500 to ₹1,000/month
     (Exact amounts depend on the AMC’s policy.)


9. Can international funds be part of a long-term portfolio?

Yes. They can add valuable diversification and reduce domestic concentration risk. Ideal allocation: 5–15% of your portfolio, depending on risk profile.


10. What are the types of international mutual funds?

  • Geography-specific funds (e.g., U.S. equity, Europe, Japan)
  • Global diversified funds
  • Thematic funds (e.g., technology, healthcare, ESG, innovation)
  • Emerging market funds
  • Feeder funds investing in global ETFs


11. Can I redeem international fund units anytime?

Yes, most are open-ended and offer liquidity. However, consider:

  • NAV cut-off timing (international NAVs are based on global time zones)
  • Exit load (usually 0.5–1% if redeemed within 1 year)


12. Why are some international funds temporarily suspended for new investments?

This usually happens when the AMC hits its overseas investment limits (set by SEBI/RBI). New SIPs, STPs, or lumpsum investments may be paused until more headroom is allowed.


13. Do international funds pay dividends?

Yes, if you're invested in a dividend plan (now called IDCW - Income Distribution cum Capital Withdrawal). However, most investors prefer the growth option for compounding benefits.


14. Can NRIs invest in international mutual funds in India?

Yes, NRIs can invest subject to compliance with FEMA guidelines. Some fund houses may have additional restrictions based on the investor’s country of residence (e.g., U.S., Canada).


15. Can I claim tax benefits under Section 80C by investing in international funds?

No, international mutual funds do not qualify for tax deductions under Section 80C. Only certain domestic ELSS (Equity Linked Savings Scheme) funds offer 80C benefits.


16. Can I invest in multiple international funds?

Yes, but be cautious of overlapping exposure (e.g., investing in two U.S.-focused tech funds may lead to concentration risk). Always check the underlying holdings.


17. Do international funds have higher expense ratios?

Yes, they often do — due to feeder fund costs, foreign fund management fees, and currency conversion charges. Always compare expense ratios across options.


18. Can I switch from a domestic fund to an international fund within the same AMC?

Yes, but it's considered a redemption + new investment, and tax implications will apply on the redeemed amount.


19. Is KYC required for investing in international mutual funds?

Yes, standard KYC compliance is mandatory for all mutual fund investments in India, including international ones. No separate international KYC is required.


20. Are there any restrictions on repatriation of funds for NRIs from international mutual funds?

NRIs can repatriate proceeds subject to FEMA guidelines. Redemption proceeds must be credited to an NRE/NRO account as applicable.