International mutual funds in India now hold over ₹88,000 crores in assets (iNRI). Many NRIs in our WhatsApp community have asked: "How can I invest in Apple, Google, or Amazon through India?"
Global mutual funds are the answer. At Belong, we help NRIs access these opportunities while staying tax-compliant. Here's everything you need to know.
What Are Global Mutual Funds?
Global mutual funds pool money from investors to buy shares of companies listed outside India. These include tech giants like Microsoft, healthcare leaders, and emerging market champions.
Indian Asset Management Companies (AMCs) manage these funds under SEBI regulations. You invest in rupees through your NRE or NRO account. The fund manager handles currency conversion and international compliance.
Think of it as buying a basket of the world's best companies through a single investment.
Why Should NRIs Consider Global Funds?
Geographical diversification. When Indian markets struggle, US or European markets might perform differently. Your portfolio gets a cushion against local volatility.
Access to global leaders. You can invest in companies like Apple, Amazon, and Alphabet that have delivered consistent growth over decades. These opportunities are otherwise complex for retail investors to access directly.
Currency advantage. If the rupee depreciates against the dollar, your international fund holdings could gain value in rupee terms.
👉 Tip: Global funds work best as 10-20% of your total portfolio, not as your only investment.
Types of Global Funds for NRIs
Fund Type | What It Does | Best For |
|---|---|---|
US-focused funds | Invest in American companies | Exposure to world's largest economy |
Emerging market funds | Target fast-growing economies | Long-term growth potential |
Global tech/sector funds | Focus on specific sectors worldwide | Thematic investing |
Multi-asset global funds | Mix of equity, debt, commodities | Conservative diversification |
Most thematic mutual funds now include global options. You can also explore emerging market funds for higher growth potential.
Tax Rules for NRIs (2024-2025)
This is where most NRIs get confused. Here's the simplified version:
If the fund has 65%+ equity allocation:
- Short-term gains (under 12 months): 20% tax
- Long-term gains (over 12 months): 12.5% on gains above ₹1.25 lakh
If the fund has less than 65% equity:
- Gains taxed at your income slab rate, regardless of holding period
- No indexation benefit available
TDS is deducted at source for NRIs. You can claim DTAA benefits to avoid double taxation if you're in UAE or other treaty countries.
👉 Tip: Check a fund's equity allocation before investing. It determines your entire tax treatment.
How to Invest in Global Mutual Funds
Step 1: Complete KYC You need a PAN card and NRI-specific KYC verification. Use our Residential Status Calculator to confirm your classification.
Step 2: Link your NRI account Investments route through NRE (fully repatriable) or NRO accounts. Most NRIs prefer NRE for flexibility. Understand the NRE vs NRO difference before choosing.
Step 3: Select your fund Compare funds based on 3-year and 5-year returns, expense ratio, and fund manager track record. Our Mutual Funds Explorer can help.
Step 4: Start SIP or lump sum You can begin with as little as ₹500 per month through SIP investments.
Restrictions for US and Canada NRIs
If you're in the US or Canada, FATCA compliance creates hurdles. Many AMCs don't accept investments from these countries.
However, some fund houses like SBI Mutual Fund, ICICI Prudential, and UTI still allow investments with additional documentation including your US Tax Identification Number.
Always verify with the specific AMC before investing.
The GIFT City Alternative
Here's something most articles miss. GIFT City mutual funds offer NRIs zero capital gains tax on investments.
These are USD-denominated funds regulated by IFSCA. You get global diversification plus complete tax efficiency. For NRIs serious about building wealth, this is often the smarter route.
You can explore options through Belong's platform where we offer GIFT City mutual funds with:
- No capital gains tax
- No NRE/NRO account requirement
- Start with just $500
Risks to Consider
Currency fluctuation. A strengthening rupee can reduce your returns when converted back.
Regulatory differences. Global markets have different rules. Fund managers must navigate these complexities.
Higher expense ratios. International funds typically charge more than domestic equity funds due to added operational costs.
Market timing. Different time zones mean you may not react to global news as quickly.
👉 Tip: Invest for at least 5 years. Short-term volatility in global markets can be significant.
Should You Invest?
Global mutual funds make sense if:
- Your portfolio is heavily concentrated in Indian assets
- You want exposure to world-leading companies
- You have a 5+ year investment horizon
- You understand currency and market risks
They may not suit you if:
- You're looking for quick returns
- You can't handle short-term volatility
- Your total investment corpus is small
For most NRIs, a balanced approach works best. Keep the majority in safe investments like NRI fixed deposits or debt funds, and allocate 10-20% to global exposure.
Take the Next Step
Global mutual funds offer NRIs a powerful way to diversify beyond India while staying within a regulated framework. The key is choosing the right funds, understanding tax implications, and having realistic expectations.
Join our WhatsApp community where NRIs discuss global investment strategies and share experiences: Join Here
Download the Belong app to explore GIFT City funds with zero capital gains tax: Download Belong
