Index, ETF, FoF & Other Funds
International Mutual Funds
Diversify into US, global and emerging-market stocks.
Updated 30 September 2026 · SEBI rules as of 2026
Structure
Direct overseas equity or FoF
Index, ETF, FoF & Other FundsOverview
International funds invest in overseas equities directly or through FoFs. They add geographic and currency diversification, but are subject to industry-wide overseas investment limits, currency movement and non-equity taxation in most cases.
| Particular | Details |
|---|---|
| Structure | Direct overseas equity or FoF |
| Currency | Gains when the rupee weakens |
| Tax | Usually “other fund” rules — LTCG 12.5% after 24 months, STCG slab |
| Limits | Industry-wide overseas caps can pause fresh inflows |
Risks
- Currency risk
- Overseas market risk
- Regulatory limit on new inflows
- Higher costs than domestic index funds
Frequently asked questions
Are US funds taxed like equity funds?
Generally no — most are taxed as other funds.
Mutual fund investments are subject to market risks; read all scheme-related documents carefully. Information is educational and may change with SEBI / tax rules — verify with the AMC, AMFI or SEBI. FinancePortal is not an investment adviser.