International mutual funds with stellar returns: Up to 197% on lump sum and 245% on SIP investments – Money News
International mutual funds have made a strong comeback over the last one year, driven by rallies in markets such as Taiwan, Japan, the US, and several other economies. Some schemes have delivered extraordinary returns, with one fund generating nearly 197% returns on a lump sum investment and over 245% returns on SIP investments in just one year.
However, there is a catch. While returns have been impressive, most international mutual funds are no longer accepting fresh investments because of regulatory restrictions on overseas investments. As a result, investors looking for global diversification today have very limited options.
According to Value Research data, there are currently 66 international mutual funds (active and passive) in the market. Of these, only six active international funds delivered standout one-year returns as of June 15, 2026.
Top international mutual funds based on 1-year returns
The table below shows the top-performing active international funds based on one-year lump sum and SIP returns.
| Fund | 1-year lump sum return | 1-year SIP return |
| Nippon India Taiwan Equity Fund | 196.78% | 245.57% |
| Franklin Asian Equity Fund | 51.53% | 57.94% |
| Nippon India Japan Equity Fund | 37.10% | 39.18% |
| Aditya Birla Sun Life International Equity Fund | 32.43% | 31.94% |
| ICICI Prudential US Bluechip Equity Fund | 21.43% | 14.40% |
| Nippon India US Equity Opportunities Fund | 16.72% | 17.02% |
(Source: Value Research)
Among these, Nippon India Taiwan Equity Fund emerged as the clear winner, delivering a staggering 196.78% return in one year. The strong performance was largely driven by the rally in Taiwanese technology and semiconductor stocks. It was followed by Franklin Asian Equity Fund and Nippon India Japan Equity Fund.
How Rs 1 lakh lump sum and Rs 10,000 SIP grew in one year
Returns look impressive on paper, but actual investment values tell a more compelling story.
Lump sum investment of Rs 1 lakh
| Fund | Rs 1 lakh became |
| Nippon India Taiwan Equity Fund | Rs 2,96,780 |
| Franklin Asian Equity Fund | Rs 1,51,530 |
| Nippon India Japan Equity Fund | Rs 1,37,100 |
| Aditya Birla Sun Life International Equity Fund | Rs 1,32,430 |
| ICICI Prudential US Bluechip Equity Fund | Rs 1,21,430 |
| Nippon India US Equity Opportunities Fund | Rs 1,16,720 |
(Source: Value Research)
SIP investment of Rs 10,000 per month
| Fund | Total invested | Value after 1 year |
| Nippon India Taiwan Equity Fund | Rs 1,20,000 | Rs 4,14,684 |
| Franklin Asian Equity Fund | Rs 1,20,000 | Rs 1,89,528 |
| Nippon India Japan Equity Fund | Rs 1,20,000 | Rs 1,67,016 |
| Aditya Birla Sun Life International Equity Fund | Rs 1,20,000 | Rs 1,58,328 |
| ICICI Prudential US Bluechip Equity Fund | Rs 1,20,000 | Rs 1,37,280 |
| Nippon India US Equity Opportunities Fund | Rs 1,20,000 | Rs 1,40,424 |
(Source: Value Research)
The numbers highlight how a strong rally in a foreign market can significantly boost portfolio returns. However, investors should remember that such extraordinary gains are not common and may not be repeated in future years.
The biggest catch: Most funds are closed for new investments
Despite their strong returns, these funds are not easily accessible.
In fact, none of the six top-performing active international funds currently allow fresh lump sum investments. As far as SIPs are concerned, only Franklin Asian Equity Fund is available for new SIP registrations. The remaining funds have either stopped accepting SIPs or have imposed restrictions on fresh inflows.
A notable example is the Nippon India Taiwan Equity Fund, which stopped accepting fresh investments, new SIP registrations, lump sums and switch-ins from April 21, 2026. The decision was taken after the fund’s assets surged rapidly and moved close to the overseas investment limits allowed under regulations.
Why are international funds closing their doors?
The restrictions are linked to regulatory limits imposed on overseas investments.
Currently, the Indian mutual fund industry’s overseas investment limit is capped at $7 billion, while each asset management company (AMC) can invest only up to $1 billion overseas. Once an AMC approaches its limit, it must stop accepting fresh money into its international schemes.
Why SIPs are sometimes allowed while lump sums are not
Fund houses generally prefer SIP inflows because they are predictable and gradual. A steady stream of small monthly investments is easier to manage within regulatory limits.
Large lump sum investments, on the other hand, can quickly exhaust the remaining overseas investment capacity. As a result, many AMCs either stop accepting lump sums altogether or impose very low limits on investments.
This explains why only a handful of international funds still allow SIP investments and why lump sum opportunities are extremely limited today.
Only one international fund currently allows lump sum investments
According to Value Research data, only one international fund is currently open for fresh lump sum investments: Baroda BNP Paribas Aqua FoF.
The fund is an open-ended fund of fund launched in May 2021. It invests in global water-related businesses involved in water infrastructure, treatment, utilities and technology.
Key details of Baroda BNP Paribas Aqua FoF
| Particulars | Details |
| Launch Date | May 7, 2021 |
| Benchmark | MSCI ACWI |
| Assets Under Management | ₹40 crore |
| Base Expense Ratio | 0.51% |
| Return Since Launch | 10.01% |
| Risk Level | Very High |
(Source: Value Research/Fact Sheet)
Nearly 97% of the portfolio is invested in BNP Paribas Funds Aqua, giving investors exposure to global companies linked to the water theme.
Risk Profile of Baroda BNP Paribas Aqua FoF
The fund has recorded a mean return of 15.76%, with a standard deviation of 16.11%, indicating moderate-to-high volatility. Its Sharpe Ratio of 0.61 suggests reasonable risk-adjusted returns, while the Sortino Ratio of 1.08 indicates relatively better downside risk management. While it offers a unique thematic exposure, investors should be comfortable with fluctuations associated with sector-focused global funds.
International funds still accepting SIP investments
While lump sum opportunities are scarce, investors still have a few SIP options.
There are currently 12 international funds that continue to accept SIP investments. The top performers among them include:
| Fund | 1-Year Return |
| Edelweiss Emerging Markets Offshore | 66.50% |
| Edelweiss Greater China Offshore | 56.10% |
| PGIM Emerging Markets Equity FoF | 45.40% |
| Franklin Asian Equity Fund | 43.70% |
| Edelweiss US Technology FoF | 41.30% |
| Edelweiss US Value Offshore | 33.90% |
| Edelweiss Europe Dynamic Offshore | 26.20% |
| PGIM Global Real Estate FoF | 23.50% |
| Franklin U.S. Opportunities FoF | 21.50% |
| Edelweiss ASEAN Offshore | 21.00% |
| PGIM Global Equity Opportunities FoF | 19.10% |
| Baroda BNP Paribas Aqua FoF | 15.60% |
(Source: Value Research)
Most of these funds carry a Very High Risk classification and many have SIP limits, often around ₹5,000 per month, depending on the AMC’s available overseas investment headroom.
Which SIP funds look strong on a risk-adjusted basis?
Returns alone do not tell the complete story. Risk-adjusted performance metrics such as Sharpe Ratio, Sortino Ratio and volatility provide a better understanding of how efficiently a fund generated returns.
Among the available SIP options:
Edelweiss Europe Dynamic Offshore stood out with a Sharpe Ratio of 1.36 and Sortino Ratio of 2.35, indicating strong risk-adjusted performance.
PGIM Emerging Markets Equity FoF also impressed with a Sharpe Ratio of 1.33 and Sortino Ratio of 2.36.
Edelweiss Emerging Markets Offshore delivered a Sharpe Ratio of 1.31 and Sortino Ratio of 2.23.
Franklin U.S. Opportunities FoF and Edelweiss US Value Offshore also demonstrated strong risk-adjusted returns while maintaining moderate volatility.
These metrics suggest that some funds have not only generated high returns but have also managed risk relatively well.
What should investors keep in mind before investing?
International funds can be an excellent diversification tool, but investors should not chase recent returns alone.
A few important risks deserve attention:
Currency risk: Returns are influenced not only by foreign stock performance but also by currency movements. A strengthening rupee can reduce gains from overseas investments.
Regulatory risk: As the current situation shows, investment opportunities can become restricted due to overseas investment limits imposed by regulators.
Market concentration risk: Many top-performing funds are concentrated in specific regions such as Taiwan, China, Japan or the US technology sector. A slowdown in those markets can significantly affect returns.
Geopolitical risk: International portfolios are exposed to global political events, trade disputes, wars, sanctions and policy changes that can create sudden volatility.
Valuation risk: Several foreign markets have witnessed sharp rallies over the last year. Investors entering after a strong run-up should be prepared for periods of correction and lower future returns.
Summing up….
International mutual funds have rewarded investors handsomely over the past year, with some schemes generating returns that are rarely seen in traditional diversified equity funds. However, the investment landscape has changed dramatically due to regulatory restrictions on overseas investments.
Today, investors have only one international fund open for fresh lump sum investments and a limited set of SIP options. While recent returns may look attractive, investors should focus on diversification benefits, long-term goals, risk-adjusted performance and portfolio allocation rather than chasing last year’s winners.
For most investors, international funds can serve as a useful satellite allocation within a diversified portfolio, but they should not become the core of an investment strategy solely because of their recent stellar performance.
Disclaimer: Past performance is not indicative of future results. Mutual fund investments are subject to market risks. International funds carry additional risks such as currency fluctuations, geopolitical developments, regulatory changes, and overseas market volatility. Investors should assess their risk appetite, investment horizon, and financial goals before investing and consult a financial advisor if required. Data and fund availability are based on information from Value Research and fund disclosures as of June 2026.
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