Best Global Mutual Funds in India (2026)
Global mutual funds invest in equities listed outside India, allowing investors to participate in international markets. Under SEBI regulations, Indian mutual funds can invest in overseas securities within limits set by SEBI and the Reserve Bank of India (RBI).
These funds help investors diversify beyond domestic markets and gain exposure to global companies and industries that may not be available in India.
Top 10 Best Global Mutual Funds in India Based on Returns, Ranks & AUM
AUM Growth of Global Mutual Funds - March 2026
In the past one month, the Axis Greater China Equity Fund of Fund Direct Growth has emerged as the leader in net AUM growth, witnessing an impressive addition of ₹519.97 crore. This positions it as one of the top-performing Global mutual funds in terms of investor interest and fund growth.
Fund | 1M Net Flow | 1M Net Flow % | Action |
|---|---|---|---|
 Axis Greater China Equity Fund of Fund Current AUM: 2.91K Cr | +₹519.97 Cr | 28.24% | Invest |
 Kotak Global Emerging Market Overseas Equity Omni FOF Fund Current AUM: 876.91 Cr | +₹316.55 Cr | 137.81% | Invest |
Axis Global Equity Alpha Fund of Fund Current AUM: 1.89K Cr | +₹161.59 Cr | 11.22% | Invest |
 ICICI Prudential NASDAQ 100 Index Fund Current AUM: 2.8K Cr | +₹49.89 Cr | 1.90% | Invest |
 Franklin Asian Equity Fund Current AUM: 426.9 Cr | +₹41.41 Cr | 13.16% | Invest |
Top Stock added by Global Mutual Funds - March 2026
Over the last month, Workday Inc Class A has been added to the portfolios of 2 out of 62 Global mutual funds. This signals growing confidence in the stock’s long-term growth prospects among Global fund managers.
Fund | 1M Net Flow | Action |
|---|---|---|
ICICI Prudential US Bluechip Equity Fund Increased shares by 36.85% | +₹27.6 Cr | Invest |
ICICI Prudential NASDAQ 100 Index Fund Increased shares by 4.51% | +₹0.25 Cr | Invest |
Top Stock sold by Global Mutual Funds - March 2026
In contrast, International Flavors & Fragrances Inc has been sold by 2 of 62 Global mutual funds in the last one month. This shift underscores a cautious approach by fund managers toward the stock, reflecting changing market dynamics.
Fund | 1M Net Flow | Action |
|---|---|---|
ICICI Prudential US Bluechip Equity Fund Decreased shares by 85.09% | -₹34.96 Cr | Invest |
 Motilal Oswal S&P 500 Index Fund Decreased shares by 3.77% | -₹0.05 Cr | Invest |
Sector allocation of Global mutual funds - March 2026
Over the last 6 months, Global category has seen increased allocation towards Energy, Basic Materials, Consumer Defensive sectors and allocation in Real Estate sectors has decreased
Sector | AUM |
|---|---|
 Tech Increased by 12.79%, in last 6M | 23.77K Cr |
 Communication Increased by 6.32%, in last 6M | 8.06K Cr |
 Consumer Cyclical Increased by 15.87%, in last 6M | 7.33K Cr |
 Derivatives Increased by 33.09%, in last 6M | 4.6K Cr |
 Financial Services Increased by 21.17%, in last 6M | 4.48K Cr |
 Industrial Increased by 38.90%, in last 6M | 4.45K Cr |
 Health Increased by 18.23%, in last 6M | 4.39K Cr |
 Basic Materials Increased by 55.56%, in last 6M | 3.8K Cr |
 Consumer Defensive Increased by 47.11%, in last 6M | 3.14K Cr |
 Energy Increased by 56.19%, in last 6M | 781.96 Cr |
 Utilities Increased by 22.96%, in last 6M | 590.18 Cr |
 Real Estate Decreased by 6.57%, in last 6M | 426.27 Cr |
What Are Global Mutual Funds and How Do They Work?
Global mutual funds are schemes that invest in companies listed in international markets.
These funds may invest in:
- US technology companies
- European multinational firms
- emerging market businesses
- global sector leaders
By investing internationally, these funds allow Indian investors to participate in global economic growth and benefit from opportunities outside the domestic market.
Because the underlying assets are denominated in foreign currencies, returns are influenced by both market performance and exchange rate movements.
SEBI Rules for Global Mutual Funds
Overseas investments by Indian mutual funds are regulated by SEBI and RBI.
Key rules include:
- The mutual fund industry has a collective overseas investment limit of USD 7 billion
- Individual fund houses must operate within their allocated overseas investment limits
- Funds must clearly disclose their overseas investment strategy in the Scheme Information Document (SID)
- Investors are exposed to currency risk in addition to equity market risk
If the industry limit is fully utilised, fund houses may temporarily restrict new investments into overseas schemes.
How Do Global Mutual Funds Generate Returns?
Global mutual funds generate returns through several factors.
1. Performance of international companies
Returns depend on the growth and profitability of companies listed in overseas markets.
2. Currency movement
Since investments are denominated in foreign currencies such as the US dollar or euro, exchange rate changes influence returns. A weakening rupee can increase the value of overseas investments when converted back to INR.
3. Global economic trends
Different countries follow different economic cycles, which may provide diversification benefits compared with investing only in Indian markets.
4. Dividend income
Some international companies distribute dividends, which contribute to total returns.
Global Mutual Funds vs International Mutual Funds
Although often used interchangeably, the terms global funds and international funds have a technical distinction in investment terminology.
| Feature | Global Mutual Funds | International Mutual Funds |
|---|---|---|
| Investment universe | Can invest worldwide including India | Invest only outside India |
| Domestic exposure | May include Indian stocks | No Indian equity exposure |
| Diversification | Mix of domestic and global companies | Pure overseas exposure |
| Objective | Global portfolio diversification | International market participation |
In India, many schemes marketed as global funds actually function like international funds, focusing mainly on overseas equities.
Who Should Invest in Global Mutual Funds?
Global mutual funds may be suitable for investors seeking geographic diversification.
They may be appropriate for:
- Investors who want exposure to international companies and industries
- Investors seeking diversification beyond Indian equity markets
- Investors comfortable with currency fluctuations
- Long-term investors with an investment horizon of 5 years or more
Global funds can complement domestic equity funds in a diversified portfolio.
However, they may not be suitable for:
- Investors seeking only domestic market exposure
- Investors uncomfortable with currency risk
- Investors with short investment horizons
Investors should evaluate their financial goals, risk tolerance, and investment horizon before investing.
Advantages of Global Mutual Funds
Global mutual funds offer several potential benefits.
- Geographic diversification
Investing internationally reduces dependence on a single country's economic performance.
- Access to global companies
Investors can gain exposure to multinational corporations that are not listed on Indian stock exchanges.
- Currency diversification
Overseas investments may benefit when the Indian rupee weakens against foreign currencies.
Risks of Global Mutual Funds
Global mutual funds also involve certain risks.
- Currency risk
Exchange rate fluctuations can affect the value of overseas investments.
- Global market risk
International markets may be affected by geopolitical events, economic policies, and global financial conditions.
- Regulatory and investment limits
SEBI and RBI impose limits on overseas investments by Indian mutual funds, which may affect fund inflows.
Investors should consider these risks before investing.
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