The one equity fund with the highest exposure to US stocks

Summary: What if one Indian equity fund quietly gave you exposure to some of the world’s most iconic companies, such as Microsoft, Amazon, Nike, without you needing to invest abroad directly? At Value Research, we’ve long argued that Indian investors shouldn’t keep all their money at home. Up to 30 per cent in global stocks, especially in the US, can make your portfolio stronger and safer. But among the hundreds of equity funds out there, which one has the highest exposure to international stocks right now? Let’s find out.

At Value Research, we have long argued that Indian investors should not put all their eggs in the domestic basket. Up to 30 per cent of your money in foreign stocks, especially in the US, makes sense for a balanced portfolio. Our preference is clear: we like the Nasdaq, where cutting-edge innovation companies are listed and thriving.

But why should you care about global diversification in the first place? The answer is simple.

Why global diversification matters

Investing abroad offers two critical benefits:

• Hedge against the rupee: The rupee has been steadily losing value against the US dollar for years. This means even if your US investments don’t shoot the lights out, you can still gain when converting those returns back to rupees.

For example, let’s suppose you invested $1,000 in a US stock in 2014, when the exchange rate was about Rs 62 per dollar. That’s an investment of Rs 62,000.
Even if the stock stayed flat at $1,000 for the next 10 years, by 2024, the rupee had weakened to around Rs 84 per dollar. Your $1,000 would then be worth Rs 84,000, around 3.4 per cent annualised gain purely because of currency depreciation.

• Exposure to industries India doesn’t dominate: Whether it’s cloud computing, semiconductors, AI or branded consumer goods, global markets, particularly the US, offer exposure to businesses you simply cannot access through Indian stocks. Owning shares in companies like Microsoft, Amazon or Nvidia is a way to participate in growth engines that power the modern economy.

How mutual funds give you this access

While you could invest in international ETFs or feeder funds, some actively managed Indian equity funds already come with a dose of global exposure.

One standout today is the DSP Value Fund.

As of June 2025, this four-star rated fund had 29.1 per cent of its portfolio invested in global stocks, the highest among diversified Indian equity funds.

DSP Value Fund vs Sectoral/thematic funds

Other schemes also invest globally, such as Edelweiss Technology Fund, Kotak Pioneer Fund or Franklin India Technology Fund.

But there’s a catch: these are thematic and sectoral funds. Their returns depend disproportionately on the fate of one industry. If technology slumps, so do these funds. We have often cautioned against such concentration because history has shown how brutal sectoral downturns can be.

That’s why DSP Value Fund stands apart. It is a diversified fund. It invests across sectors and geographies, reducing the risk of overexposure to any single theme.

How diversification has paid off

The difference shows up in the last 12 months’ performance. While the Indian market has largely moved sideways this year, with the Nifty growing just 1.5 per cent, DSP Value Fund’s international exposure—particularly to US stocks—has helped it deliver 6.24 per cent growth in the last 12 months. This is the second-best return among all value funds, at a time when the broader value fund category declined nearly 3 per cent.

And although the fund doesn’t yet have a five-year record, its three-year annualised return of 17.5 per cent comfortably places it in the top half of the pack.

Where DSP Value Fund invests globally

Some of its largest US holdings include:

• Microsoft (2.28 per cent)
• Berkshire Hathaway (2.08 per cent)
• Brookfield (1.66 per cent)
• Nike (1.5 per cent)
• Amazon (1.38 per cent)

Beyond the US, it also holds Tencent Holdings (China) and SK Hynix (South Korea), adding another layer of diversification.

Why DSP Value’s global tilt matters

This global allocation is especially significant because India’s mutual funds face a regulatory ceiling of $7 billion on overseas investments. The limit, hit back in 2022, has not been raised since.

This means only a handful of mutual funds, like DSP Value, continue to enjoy meaningful foreign exposure. Most new funds, even those with mandates allowing overseas investments, cannot actually deploy fresh money abroad.

As we mentioned earlier, there are other sectoral and thematic funds that have some allocation to international stocks, none match DSP Value’s balanced and diversified global spread.

So, should you invest in this fund?

At Value Research, we believe Indian investors should have some overseas exposure, but the key question is which fund deserves your money today? That’s where Value Research Fund Advisor comes in.

With Fund Advisor, you don’t just get a list of funds, we give you clear, actionable recommendations, backed by 30 years of research. Our experts cut through the clutter of hundreds of schemes, track performance consistently and tell you what to buy, what to avoid and when to hold on.

So, if you’re serious about building long-term wealth with the right mix of Indian and global funds, Value Research Fund Advisor is your best guide.

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