International mutual funds have emerged as some of the best-performing schemes available to Indian investors over the past year, with Nippon India Taiwan Equity Fund leading the pack with a remarkable one-year return of 202.9%. According to reports from Mint, this performance means an investment of ₹1 lakh would have grown to more than ₹3 lakh over the period. The next best performer was Franklin Asian Equity Fund with 55.5% returns, followed by Nippon India Japan Equity Fund at 37% and Aditya Birla Sun Life International Equity Fund at 31.9%. Among larger funds, ICICI Prudential US Bluechip Equity Fund delivered 18.9% returns with assets under management of ₹3,699 crore, while Nippon India US Equity Opportunities Fund generated 16.1%.
The latest return data reveals a significant shift in where international returns came from over the past year. As reported by Mint, Franklin Asian Equity Fund's 55.5% return was nearly three times the 18.9% delivered by ICICI Prudential US Bluechip Equity Fund. Nippon India Japan Equity Fund generated 37%, compared with 16.1% from Nippon India US Equity Opportunities Fund. This performance gap demonstrates that the strongest-performing funds were concentrated in Taiwan, Japan and broader Asian markets rather than US equities, suggesting that investors who diversified across regions saw significantly higher gains over the period.
Despite the impressive returns, investors looking to invest in these funds today may find their options significantly limited by SIP caps. According to the latest data, half of the international funds still accepting fresh SIPs impose a monthly cap of ₹5,000, creating substantial barriers for larger investments. However, several funds continue to offer access with varying caps, including Franklin Asian Equity Fund (₹50,000/month), Franklin U.S. Opportunities Equity Active FoF (₹50,000/month), PGIM India Global Equity Opportunities FoF (₹50,000/day across three funds), and PGIM India Emerging Markets Equity FoF (₹50,000/day). Notably, Edelweiss Emerging Markets Opportunities Equity Offshore Fund delivered a one-year return of 66.8%, making it one of the strongest performers among funds still accessible to investors.
The current SIP caps present both challenges and opportunities for investors seeking global exposure. As reported by Mint, a ₹5,000 monthly cap translates to approximately ₹60,000 annually, which may be sufficient for most investors building a global portfolio slice rather than the main investment course. However, larger lump sum investments face significant time constraints - a ₹5 lakh position through an Edelweiss fund would require over six years to fill, while the same amount through Franklin or PGIM funds would take under a year. The analysis suggests treating these caps as speed limits rather than destination limits, focusing on funds that align with long-term investment objectives rather than chasing higher caps.
