Aditya Birla Sun Life AMC International (IFSC) Ltd, the wholly owned GIFT City subsidiary of Aditya Birla Sun Life AMC, has launched two retail fund-of-funds schemes targeting resident Indian investors and NRIs seeking overseas exposure. The ABSL Emerging Market Equity Fund (Outbound) is an open-ended thematic fund of funds seeking long-term capital appreciation by investing predominantly in units of the ARGA Emerging Market Equity Fund and other emerging-market funds, providing access to global emerging markets through the Liberalised Remittance Scheme (LRS) route for resident Indians and the Overseas Portfolio Investment (OPI) route for Indian corporates. The ABSL India Growth Fund (Inbound) will invest in equity-oriented schemes of Aditya Birla Sun Life Mutual Fund, including ETFs and index funds, with a minimum initial investment of $500 and subsequent investments starting at $100 in multiples of $100.
Global feeder funds run by Indian mutual funds have paused fresh inflows after the industry exhausted its overseas investment limit, according to reports from Business Standard. Exchange-traded funds (ETFs) that invest abroad face a related problem as new units cannot be created, causing them to trade at a premium to their actual value. The average premium across India-listed international ETFs has generally been 15-20 per cent over the past year, but it has risen sharply since early September, with some funds trading at 235 per cent premium at their peak on September 18. As of October 14, 2026, only five international funds continue to accept fresh money, with most funds still turning away new investments.
For investors seeking global exposure, 14 Indian funds now hold at least 10 per cent of their assets abroad, offering an alternative route to international markets. According to recent analysis, Edelweiss Technology leads with 26.9 per cent abroad, followed by Franklin India Technology at 20.2 per cent and Kotak Pioneer at 17.3 per cent. Notable funds include Parag Parikh Flexi Cap holding 11.9 per cent and Franklin India Dividend Yield joining the list with 11.4 per cent abroad. These funds take lump sums and new SIPs at NAV, providing a more accessible route for Indian investors compared to the limited international fund options currently available.
Remittances by resident individuals for equity and debt investments abroad under the Liberalised Remittance Scheme (LRS) stood at $456.69 million in July 2026, representing a 192 per cent increase from $156.19 million a year earlier, as reported by the Reserve Bank of India (RBI) Bulletin of September 2026. The BSE has since cautioned investors that those buying at steep premiums face the risk of an abrupt price fall unrelated to the underlying assets, highlighting the current market challenges for global investment access. Despite recent market volatility, US shares fell this week, yet ETF prices fell less, with the Motilal Oswal NASDAQ Q50 ETF trading at a 111.8 per cent premium to its NAV.
According to A. Balasubramanian, managing director and chief executive of Aditya Birla Sun Life AMC, the IFSC subsidiary would help the company build global investment capabilities from India, with the Emerging Market Equity Fund and India Growth Fund forming the initial offerings in this journey. The company plans to progressively build a differentiated suite of global investment solutions from the IFSC. ABSL AMC established its presence in GIFT City through a branch operation in 2022, with the new wholly owned subsidiary marking an expansion of that presence into a dedicated platform for developing and offering investment products under the IFSC regulatory framework. Experts recommend that for most long-term investors, 20 to 30 per cent of the equity portfolio abroad is enough, emphasizing that foreign exposure should be part of a diversified portfolio strategy rather than a standalone investment approach.
