35 funds that can help you invest outside India

If you are looking to invest overseas for geographical diversification, you are in luck. As of now, 35 of the 68 funds in our international category are either accepting fresh SIPs or lumpsum (one-time) investments.

Here's the list of the funds that can help you invest globally, including the US and China:

Why are 35 funds now accepting fresh investments?

Basically, the mutual fund industry cannot put more than $7 billion of investor money overseas. There are limits at the fund-house level, too . And because they breached the regulatory limit in 2022, these funds had to stop accepting new SIPs and lumpsum investments.

Since then, whenever foreign asset investments have dipped (it occurs when investors pull out their money), these mutual funds resume accepting new SIPs and lumpsum investments. However, at the end of the day, investing internationally through mutual funds can be inconsistent.

What you should know

Investing overseas through mutual funds has not been an easy path for Indian investors due to regulatory restrictions.

Right now, you can still invest globally through the 35 funds mentioned above, particularly at a time when China has introduced a massive 7.5 trillion yuan stimulus (about $1.07 trillion, or 6 per cent of its GDP, according to Deutsche Bank) and political changes are afoot in the US due to Donald Trump's potential return to the White House. However, if mutual funds hit their investment cap again, there is an alternative for geographical diversification: the Liberalised Remittance Scheme (LRS).

LRS allows Indian investors to invest up to $250,000 (roughly Rs 2.1 crore) annually in foreign assets.

However, LRS can be more complex than mutual funds, with brokers often placing limits on investment types and volumes. Consider this route only if you're prepared to handle these additional challenges.

Also read: Is it time to invest in China-focused funds?