How to sidestep RBI limits and invest globally

Summary: Want global exposure in your portfolio but unsure how to navigate the limits and restrictions? From ETFs to direct investing, explore the practical ways Indian investors are tapping into international opportunities—even as some mutual fund routes stay shut. Global diversification is no longer an extra kicker; it’s an essential part of a well-balanced portfolio. It opens doors to innovation-led companies, reduces dependence on India’s economic cycle and can add gains if foreign currencies appreciate against the rupee. At Value Research, we recommend allocating up to 30 per cent of your portfolio to international equities, based on your goals and time horizon. However, India’s mutual fund industry has been constrained by overseas investment limits. The RBI’s $7 billion ceiling applies industry-wide, with each fund house capped at $1 billion. In early 2022, this led to a freeze on fresh inflows into international schemes. Further, SEBI allows only fund houses within their limit to raise money, so some have stopped accepting new investments.