Global Mutual Funds Gain Up to 58% in 1 Year; Just 26 Schemes Open for Investment

High-performing international funds remain closed; SIP access available in select schemes with daily PAN limits

Even as international mutual funds have delivered stellar one-year returns of up to 58%, only 26 out of 70 schemes remain open for fresh investments as of July 11, 2025. According to ACE MF data, top-performing schemes like Mirae Asset Hang Seng TECH ETF FoF and NYSE FANG+ETF FoF are closed for new inflows, largely due to regulatory restrictions on overseas investment limits imposed by SEBI and RBI.

The Indian mutual fund industry has been urging the regulators to enhance the overseas investment cap, which currently stands at $7 billion for the industry and $1 billion per AMC. However, despite incremental relaxations, several funds with the highest trailing returns remain shut, forcing investors to trade only in the secondary market via ETFs for any exposure.

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Top Performing Global Mutual Funds in Past Year Now Inaccessible for Fresh Investment

Data from ACE MF as of July 9, 2025, highlights that some international mutual funds have outperformed domestic peers significantly over the past 12 months. However, most of these top performers are not accepting new investments.

Highest 1-Year Returns:

• Mirae Asset Hang Seng TECH ETF FoF: +57.8% (AUM ₹87 Cr)

• Mirae Asset NYSE FANG+ETF FoF: +50.7% (AUM ₹1,925 Cr)

• Mirae Asset Hang Seng TECH ETF: +49.0%

• Nippon India ETF Hang Seng BeES: +42.5%

• Mirae Asset S&P 500 Top 50 ETF FoF: +35.2%

26 International Mutual Funds Still Accepting Investments – With Caveats

Currently, only 26 schemes are open, and many come with daily limits per PAN. Some are open for both SIP and lump sum, while others have temporarily suspended SIP routes.

Examples of Funds Open for Subscription:

• ABSL Global Emerging Opportunities Fund: Open, no limit

• Axis Global Equity Alpha FoF: Open, no limit

• Edelweiss Europe Dynamic Equity Offshore Fund: Open, limit ₹10 lakh/PAN/day

• Invesco Global Equity Income FoF: Open, no limit

• Kotak Global Innovation FoF: Open, no limit

• Baroda BNP Paribas Aqua FoF: Only lump sum allowed, SIPs paused, limit ₹5 lakh/day

Daily Limits Imposed By Some AMCs:

• Edelweiss MF: ₹10 lakh per PAN per day across all open overseas schemes

• Baroda BNP Paribas MF: ₹5 lakh per PAN per day in select funds

Despite availability, investor inflows are being controlled to avoid breaching regulatory limits.

Regulatory Roadblocks and Industry Push for Cap Hike

In 2022, SEBI froze new overseas investments by domestic mutual funds to prevent breaching RBI’s cap. The regulator later allowed fresh investments within the previously unused headroom, but full normalisation hasn’t occurred.

As of June 2025, international mutual fund exposure stood at ₹58,000 crore, highlighting growing investor interest in global diversification amid US tech stock rallies, Chinese tech rebounds, and European equity outperformance.

The industry has repeatedly lobbied SEBI and RBI to raise investment limits, pointing to:

• Surging investor demand for global diversification

• Outperformance of global indices over Nifty in select sectors

• Increased retail and HNI appetite for thematic global plays

Trade via ETF Route or Opt for Open Funds with Caution

Investors wanting to tap global growth stories—like US tech, Chinese internet, or global REITs—can:

• Buy ETFs like NASDAQ 100, S&P 500 or Hang Seng BeES via exchanges

• Opt for open-ended schemes with SIP/Lumpsum flexibility, but monitor PAN-level daily limits

• Be aware that top-yielding funds may not reopen unless regulatory changes are announced

With ongoing pressure on SEBI to allow enhanced limits, further announcements may emerge in the coming months.

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