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Home»Mutual Funds»Global diversification: These mutual funds have the highest exposure to international stocks
Mutual Funds

Global diversification: These mutual funds have the highest exposure to international stocks

By CharlotteMay 30, 20263 Mins Read
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Several domestic equity funds in India provide exposure to global companies such as Nvidia, Apple, and TSMC alongside investments in Indian equities. Through the same SIP route used for equity mutual funds, investors can gain indirect access to international stocks without the need to open separate overseas investment accounts.

By combining domestic and global equity exposure, these funds offer participation in some of the world’s largest companies through a single investment vehicle.

How has the Indian market performed as compared to the overseas market in the last 1-year?

The Indian market has relatively underperformed when compared to the US, China, Japan, Hong Kong, and Taiwan markets over the last 1-year.

Indices Country 1-Yr Returns
Nifty 50 India -3.49%
Dow Jones US +19.87%
Shanghai China +21.49%
Nikkei 225 Japan +75.09%
Hang Seng Hong Kong +8.30%
Taiwan Weighted Taiwan +107.32%

*Returns as of May 29, 2026, Source: Investing.com

Over the past one year, the Nifty 50 Index has generated a negative return. The table above illustrates how returns can vary across different equity indices and highlights the potential benefits of global diversification. By allocating investments across multiple markets, investors can reduce dependence on the performance of any single index, country, or economy and gain exposure to a broader set of growth opportunities.

Equity funds with the highest global exposure

Here are five domestic equity funds in India with the highest allocation to international equities, including investments in global technology leaders and other foreign stocks.

Equity Funds International Exposure (%) Top 3 Foreign Stock Holdings
Edelweiss Technology Fund 28.37% NVIDIA Corp, Apple Inc, Microsoft Corp
Franklin India Technology Fund 20.59% Franklin Technology Fund I (acc) USD, Cognizant Technology Solutions Corp Class A, MakeMyTrip Ltd
DSP Healthcare Fund 18.97% Globus Medical Inc Class A, Illumina Inc, Intuitive Surgical Inc
Axis Innovation Fund 13.28% Broadcom Inc, Taiwan Semiconductor Manufacturing Co Ltd ADR, Alphabet Inc Class A
SBI Technology Opportunities Fund 13.21% Alphabet Inc Class A, Cognizant Technology Solutions Corp Class A, Microsoft Corp

*Data as of April 30, 2026, Source: Value Research

Key things to consider

Percentage of overseas allocation

Review the proportion of the portfolio invested in international equities. The extent of overseas exposure influences the diversification benefits that the fund can provide. Funds with relatively low international allocations may have limited exposure to global markets, while those with higher allocations may offer broader geographic diversification.

Look for quality stocks

Review the international holdings within the portfolio to understand the types of businesses the fund invests in. Assess whether the portfolio has exposure to established global companies with strong market positions, competitive advantages, and diversified revenue streams, as well as the sectors and themes driving the fund’s international allocation. This can provide insight into the sources of potential returns and the overall quality of the portfolio.

Geographic diversification

Understanding the fund’s geographic allocation helps investors assess the sources of potential returns and risks within the portfolio. Different regions and markets can perform differently over time due to varying economic, political, and market conditions. Reviewing whether the fund’s international exposure is concentrated in a single market, such as the US, or spread across multiple regions, such as Taiwan and other countries, provides insight into the level of geographic diversification within the portfolio.

Currency Impact

Returns from overseas investments are also affected by rupee movements. A strengthening rupee can reduce gains from foreign investments, while a weaker rupee may improve returns for Indian investors.

Disclaimer: This is purely for educational/ informational purposes and should not be taken as any sort of investment advice. Always consult a SEBI-registered advisor before making any investment decisions.



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