How Global Mutual Funds Delivered 72% vs Nifty’s 5.7%, 9 Points
Mumbai
Global Funds Outshine Indian Equities: Top Performers Deliver up to 72% Returns (2024-25)
1️⃣ Global Diversification Pays Off
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Indian investors who diversified internationally earned 33%–72% returns in one year.
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Nifty50: only 5.7% return in the same period.
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Key outperformers: Technology, AI, Consumer Spending, Semiconductors, Natural Resources.
2️⃣ Top Performing International Funds (as of Oct 20, 2024)
| Fund Name | 1-Year Return (%) | 3-Year Return (%) | Theme / Focus |
|---|---|---|---|
| Mirae Asset NYSE FANG+ ETF FoF | 71.78 | 62.72 | Tech & AI Leaders |
| Invesco Global Consumer Trends FoF | 52.65 | — | Global Consumer & E-commerce |
| Mirae Asset S&P 500 Top 50 ETF FoF | 49.91 | — | US Large Caps |
| Motilal Oswal Nasdaq 100 FoF | 42.48 | — | US Tech & Innovation |
| DSP World Mining Overseas Equity FoF | 32.83 | — | Global Commodities & Mining |
3️⃣ Valuation Advantage in Global Markets
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Many foreign markets (Korea, Brazil, Taiwan, China) still trade at low valuations.
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S. Naren, ICICI Prudential AMC: “Valuation gap offers long-term opportunity.”
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Over the last 15 years, these markets underperformed India, creating room for catch-up growth.
4️⃣ Diversification Beyond Tech
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Non-tech themes like commodities and natural resources also performed well.
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DSP World Mining FoF (↑32.83%) benefited from higher global commodity prices.
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Demonstrates value in multi-sector exposure beyond US technology.
5️⃣ Strategic, Not Tactical Investing
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Abhishek Tiwari, PGIM India AMC: International exposure should be strategic, not short-term.
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Recommended for sectors/countries absent in India like China, Brazil, Korea.
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Fit within overall portfolio, not as a standalone bet.
6️⃣ Regulatory and Currency Risks
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RBI cap: $7 billion limit restricts new inflows into several global funds.
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Many funds closed for fresh subscription; ETFs still trade on exchanges.
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Currency effect:
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Rupee depreciation ➜ boosts returns
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Rupee appreciation ➜ erodes gains
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Experts warn: use for diversification, not return chasing.
7️⃣ Ideal Allocation Strategy
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Recommended 10–15% of portfolio in global funds.
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Core exposure: Broad indices (S&P 500, Nasdaq 100).
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Satellite exposure: Thematic funds (Tech, AI, Commodities).
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Indirect global access: via domestic funds like Parag Parikh Flexi Cap, DSP Multi Asset Allocation.
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Rajul Kothari, Capital League: “5–10% in global equities gives valuable diversification amid rupee depreciation.”
8️⃣ Key Financial Insights
| Metric | India (Nifty50) | Top Global Funds |
|---|---|---|
| 1-Year Return | 5.7% | Up to 72% |
| Portfolio Allocation | 0–10% (typical) | 10–15% (recommended) |
| Global Market Valuations | High | Attractive / Cheap |
| Risk Factors | Domestic volatility | Currency, regulatory, global macro |
9️⃣ The Takeaway
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International funds are no longer exotic — they are essential for portfolio balance.
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Offer exposure to global innovation, tech, and growth markets.
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Success depends on discipline, asset allocation, and SIP-based investing.
🔒 Disclaimer (for The Profit India)
This article is for informational and educational purposes only. It does not constitute financial advice or a recommendation to invest. Mutual fund investments are subject to market risks. Past performance does not guarantee future returns. Readers are advised to consult certified financial advisors before making investment decisions.
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