The International Mutual Fund Schemes investing in stock markets from the US to China have given excellent returns to Indian investors in the last one year. But surprisingly, most of these top performing schemes are currently closed for new investment. Although this method of investing in international markets is proving to be effective, but regulatory limitations remain a major hurdle for investors.
Investment banned due to the limits of SEBI and RBI
In February 2022, the Securities and Exchange Board of India (SEBI) asked all domestic mutual fund companies to ban new investment in foreign shares. Its objective was to prevent investment of more than $ 7 billion fixed by the Reserve Bank of India (RBI) for the entire industry. In addition, the RBI had also set $ 1 billion for each mutual fund house, and a limit of $ 1 billion for investment in foreign exchange-traded funds (ETFs).
Funds giving the most returns in a year
According to Ace MF data, Mirae Asset Hang Seng Tech ETF FOF has topped by giving 57.8% returns by 9 July 2025. After this, Mirae Asset Nyse Fang+ ETF FOF finished third by giving about 50.7 percent returns and Mirae Asset Hang Seng Tech ETF finished third by giving around 49.0 returns. Nippon India ETF Hang Seng Bees gave a return of 42.5%. While Mirae Asset S&P 500 Top 50 ETF FOF gave a return of 35.2%.
It is worth noting that new investment is not allowed in all these schemes. However, in those schemes which are ETF, investors can trading through stock exchange.
Which funds are still open for investment?
Out of the 70 international funds, Karub is currently only 26 schemes that are open for new investment. In these, investment is allowed through both SIP and Lampasam. However, several fund houses have also set a maximum investment limit per day per PAN card.
For example, all international schemes of Edelweiss Mutual Fund are open, but for this the limit of Rs 10 lakh per PAN per day is applicable. BARODA BNP Paribas Aqua Fof is allowed to invest in Lampasam, but the new SIP has been discontinued. Also, a limit of Rs 5 lakh per PAN per day has been fixed.
Demand to increase industry investment limit
By the end of June 2025, International Mutual Funds have invested an amount of ₹ 58,000 crore as direct investment in foreign stocks. The mutual fund industry believes that there is a need to relax the limit of foreign investment so that investors can get diversification and better returns. The industry has again raised the issue in front of SEBI and RBI.
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