Global diversification pays off: Indian investors earn up to 72% from international mutual funds
Indian investors looking for opportunities beyond domestic equities have made impressive gains last year, with several international mutual funds and fund-of-funds (FoFs) delivering returns of up to 72 per cent. These funds outperformed even the best-performing Indian equity categories, driven by a global rally driven by technology, artificial intelligence, consumer spending and commodities.
According to ACE Mutual Fund data as of October 20, the top 10 international funds delivered returns ranging between 33 per cent and 72 per cent in a year. In comparison, the benchmark Nifty gained only 5.7 per cent during the same period.
Mirae Asset NYSE FANG+ ETF FOF topped the charts with an impressive one-year return of 71.78 per cent and a three-year return of 62.72 per cent. Close behind was Invesco Global Consumer Trends FOF, which rose 52.65 per cent, benefiting from strong performance by global consumer brands and digital commerce companies.
Broader US-focused strategies also posted solid gains. The Mirae Asset S&P 500 Top 50 ETF FoF returned 49.91 per cent, while the Motilal Oswal Nasdaq 100 FoF delivered 42.48 per cent in a year.
Diversification beyond technology also proved beneficial. Rising global commodity prices and improved capital discipline among major mining companies led the DSP World Mining Overseas Equity Fund (FOF) to gain 32.83 per cent.
Overall, global diversification has clearly paid off for Indian investors this year, as international markets — especially those driven by AI, technology, and resources — delivered far stronger returns than domestic equities.
Meanwhile, gold and silver prices stabilised around $4,050 and $48 per ounce after a sharp correction in the last two sessions, as investors booked profits from Monday’s record highs.
“The pullback reflected a shift toward risk assets amid optimism over US–India trade relations, weakening gold’s safe-haven demand. Seasonal demand in India also eased, putting pressure on physical markets,” experts noted.
With IANS Inputs