10 Best Global Mutual Funds in India 2024

Investors can buy stocks directly or select an international or global mutual fund category among the best global mutual funds in India if they want to invest now outside the Indian market.

If you had only invested in opportunities in your home country, you might have missed out on specific securities through global investments. This is because global markets are more likely to experience long-term growth, which increases their efficiency over time.

Additionally, the best global mutual funds in India enable investors to place money in various markets, industries, sectors, risk profiles, and other areas.

What are Global Funds?

A mutual or Exchange-Traded Fund (ETF) that invests globally, including in the investor’s nation, is referred to as the best global mutual fund in India. From a vast pool of securities, the best global mutual funds in India look for the best investments. An international fund may be concentrated in one asset class or spread across several depending on its allocation. If you’re an investor looking to accumulate sizeable sums of money for long-term objectives such as retirement, long-term family support, and so forth, international mutual funds can help.

For instance, an Indian mutual fund company can invest in the US, UK, UAE, India, and Chinese markets, resulting in a global fund.

How do Global Mutual Funds Work?

The structure used by the top global mutual funds in India is a master-feeder. First, the investor’s money is put into the feeder fund, which invests in the master fund as part of a three-tier structure. Then, finally, the funds are invested in the market by the master fund.

In India, if you invest in foreign funds it is equivalent to financing in an Equity Mutual Fund. The money is put to use by the fund manager to purchase shares of businesses that are listed on exchanges outside of India. All these investments by the best global mutual funds in India are regulated by the Indian mutual fund companies, which are subject to the regulations of the Securities and Exchange Board of India.

Read more: Best Value Mutual Funds in India

Best Global Mutual Funds to Invest in India 2024

Now, let’s discuss the best global mutual funds in India in detail:

1. DSP BlackRock World Energy Fund

The DSP BlackRock World Energy Fund, the best global mutual fund in India Equity – Global fund, was introduced on August 14, 2009. Since its launch, this best global mutual fund in India has generated a CAGR/Annualized return of 4.3%. It ranked 29 in the global category. The rate of 2021’s return was 29.5%, 2022’s was 8.6%, and 2020’s was 0%. To occasionally meet liquidity needs, the Scheme may also invest a portion of its corpus in money market securities and money market/liquid schemes of DSP BlackRock Mutual Fund.

2. ICICI Prudential US Bluechip Equity Fund

ICICI Prudential US Bluechip Equity – Global Fund was introduced on July 6, 2012. This global mutual fund is a high-risk investment fund that has generated a CAGR/annualized return of 16.5% since its inception. Return rates for 2021 were 7.1%, 2022 were 22.5%, and 2020 were 18.6%. However, there is no guarantee that the Scheme’s investment goal will be accomplished.

3. Edelweiss Europe Dynamic Equity Off-shore Fund

The Edelweiss Europe Dynamic Equity Off-shore Fund, an equity-focused global fund, was established on February 7, 2014. The best global mutual fund is a high-risk investment fund that has generated a CAGR/annualized return of 5.6% since its inception. Its ranked number is 22 in the world. 2021’s return was 17%, 2022’s was -6%, and 2020s was 13.5%.

4. Aditya Birla Sun Life International Equity Fund – Plan A

Aditya Birla Sun Life International Equity Fund – Plan A is one of the best global mutual funds in India Equity- Global Fund was established on October 31, 2007. It is a high-risk investment that has produced a 7.8% CAGR/annualized return. 36th in the global rankings. An open-ended diversified equity scheme that invests primarily in a diversified portfolio of equity and equity-related securities on global markets intending to generate long-term capital growth. This best global mutual fund is 36th in the global rankings. Return in 2021 was 13.5%, in 2020, it was 12.2%, and in 2022 it was -2.1%.

5. DSP BlackRock World Gold Fund

DSP BlackRock World Gold Fund is an Equity – Global fund established on September 14, 2007. This best global mutual fund in India is a high-risk investment fund that has generated a CAGR/annualized return of 3.8% since its inception. 11th in the global category. Returns in 2022 were -7.7%, -9% in 2021, and 31.4% in 2020. The Investment Manager has the option to allow the Scheme to invest in the units of additional overseas mutual fund schemes that are comparable.

The best global mutual funds in India may also invest a portion of their corpus in money market securities and units of DSP Merrill Lynch Mutual Fund’s money market/liquid schemes. However, the achievement of DSP BlackRock World Gold Fund’s investment goal cannot be guaranteed.

6. ICICI Prudential Global Stable Equity Fund

ICICI Prudential Global Stable Equity Fund – Global Funds was established on September 13, 2013. This best global mutual fund in India is a high-risk investment fund that has generated a CAGR/annualized return of 9.1% since its inception. 10th in the global category. 2021’s return was 19.7%, 2022’s was 3.2%, and 2020’s was 2.9%. The Fund of Funds Scheme is an open-ended fund that aims to offer sufficient returns.

According to this best global mutual fund in India, it plans to invest in the modules of one or more foreign mutual fund schemes with comparable investment policies, fundamental characteristics, and risk profiles. A portion of its corpus may also be invested in domestic money market securities or money market/liquid schemes of domestic mutual funds.

7. Edelweiss ASEAN Equity Off-shore Fund

Edelweiss ASEAN Equity Off-shore Fund is an Equity – Global fund- that was established on July 1, 2011. The best global mutual fund is a high-risk investment fund that has produced an 8.5% CAGR/annualized return since its inception. 18th in the global category. Returns for 2021, 2022, and 2020 were 4.8%, 6.3%, and 2.3%, respectively. Investing primarily in businesses from nations that are members of the Association of South East Asian Nations is the JPMorgan Funds JF ASEAN Equity Fund (ASEAN). The Scheme’s primary goal is to generate long-term capital growth by investing primarily in JPMorgan Funds. However, the investment objective’s likelihood cannot be guaranteed.

8. DSP BlackRock World Energy Fund

DSP BlackRock World Energy Fund is an Equity – Global fund established on August 14, 09. The primary investment goal of the Scheme, which the Investment Manager has found, is to pursue capital growth. However, the Investment Manager can allow the Scheme to invest in the units of additional overseas mutual fund schemes that are comparable. Additionally, the best global mutual funds may decide to put a particular amount of their corpus into liquid or money market securities.

9. PGIM India Global Equity Opportunities Fund Direct-Growth

PGIM India Global Equity Opportunities Fund Direct-Growth is an Equity – Global fund established on January 1, 2013. This Best global mutual fund’s main investment goal is to produce long-term capital growth from a diverse foreign mutual fund unit investment portfolio. The plan will primarily invest in the PGIM Jennison Global Equity Opportunities Fund units and comparable mutual funds with goals, approaches, and risk profiles similar to those of the named underlying fund.

10. Franklin India Feeder Franklin US Opportunities Direct Fund Growth

Franklin India Feeder Franklin US Opportunities Direct Fund-Growth is an Equity – Global fund established on January 1, 2013. FIFF US Opportunities Direct Fund-Growth is a medium-sized fund with 2,761 Crores under management (AUM) as of December 31, 2022. The fund’s 0.5% expense ratio is lower than most international funds charge. The 1-year growth returns for the Franklin US Opportunities Direct Fund are -12.03%. It has generated 15.82% average annual returns since its launch. Every six years, the fund has doubled the amount invested in it.

Features of Global Mutual Funds

The following are some of the distinctive qualities of the best global mutual funds:

1. Risk element

The risk associated with investing in foreign markets is based on the market conditions and policies of the individual countries. Therefore, investment in secure top global mutual funds in Indian markets lowers the risk.

2. Returns

A global mutual fund’s returns may vary depending on several factors, including currency exchange rates and world politics.

3. Diversification

Diversifying one’s investment portfolio is the primary goal of investing in the best global mutual funds. These funds invest in various securities in various nations, resulting in the availability of a large selection of investment instruments.

4. Investing is simple

A portfolio manager can give it an international edge by making direct investments in global markets.

5. Currency Changes

Changes in the value of an international currency can significantly affect the best global mutual fund’s performance, but since these occurrences are rare, the risk is less.

How Do I Choose the Best Global Mutual Funds in India?

To choose the best global mutual funds in India, the steps listed below must be taken:

• It is necessary to investigate the best global mutual funds in India’s track record.
• Look for knowledgeable, experienced fund managers.
• The top global mutual funds in India should enhance the current portfolio.
• If you want to learn about the underlying rate of premium, read the document carefully.
• To prevent double taxation, ensure the nation you choose has a tax treaty with India.

Factors to Consider while Choosing the Best Global Mutual Funds in India

When investing in top global mutual funds in India, a variety of factors need to be evaluated first:

1. The objective of your Investment

The investment goal should be in line with your financial requirements. A five- to seven-year investment horizon is advised for global mutual funds in India investments.

2. Tax regulation

Taxation is another issue that warrants attention and may eventually prove problematic when choosing top global mutual funds in India.

3. Risk of Currency

As you are investing internationally, this is the most typical risk. Therefore, before redeeming top global mutual funds in India, it is crucial to check the exchange rates.

4. Choosing the correct country or region

Investing is always a good idea in nations with solid corporate governance and a sound legal system.

5. The Expense Ratio

An AMC fee is known as an expense ratio. The fund manager’s salary and other administrative and running expenses are paid with this fee. The cost is billed annually.

Conclusion

Investors who want to invest in the best global mutual funds in India should have a high risk tolerance when considering the risk level of these funds. A SIP is the most effective way to invest in top global mutual funds in India. Rupee-cost averaging is advantageous for a system of investments. Additionally, it can shield you from the dual volatility that global funds may experience as a result of fluctuating exchange rates and stock market volatility.

Best Global Mutual Funds in India – FAQs

Why would an investor want to put money into top global mutual funds in India?

Ans. Thanks to international funds, you can acquire ownership of some of the biggest corporations in the world, including Google, Apple, and Microsoft. As returns no longer rely on a single market, an investor lowers the portfolio risk. Additionally, currency fluctuations are advantageous to investors.

What taxes are levied in India on foreign mutual funds?

Ans. Since they invest primarily in stocks, international mutual funds are taxed as non-equity funds in India. Both long-term and short-term capital gains.

What is the procedure for investing outside India?

Ans. International mutual funds allow investors unfamiliar with foreign markets but still want to invest in their products and companies. In this case, your exposure to some of the best markets and stocks from around the world will be facilitated by the fund manager.

Is investing in foreign mutual funds a wise choice?

Ans. You can diversify geographically with international funds by investing in various foreign markets. In addition, you get the chance to own shares in some of the best businesses in the world. Finally, you can earn more money thanks to currency appreciation. So naturally, international mutual funds are a good investment choice with many benefits.