Looking for Equity Mutual Funds Holding International Stocks? Here is a list

This is a list of equity mutual funds (holding more than 65% Indian stocks) that invest in international stocks or mutual funds

Indian Mutual Funds Holding International Stocks

Published: November 9, 2019 at 11:59 am

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Holding international stocks in a portfolio can help lower risk, in particular, hold it together when Indian equities fail. However, it is not easy for retail to do this – both in terms of investment size, expenses and tax. The simplest way is to invest in Indian equity mutual funds. That is funds that hold a minimum of 65% of Indian stocks. Here is a list of such funds holding international stocks.

Readers may recall yesterday’s back-testing study on different allocations to the S&P 500 index in an equity portfolio of Nifty 50 and Nifty Next 50: How much US stocks should your portfolio hold?

In this list, we shall not consider international funds or fund of funds. It is perhaps unfortunate that we have only four equity mutual funds with more than 10% exposure to foreign stocks.

List of Equity Mutual Funds Holding International Stocks

Scheme Name Allocation (%)
Templeton India Equity Income Fund 22.35
Parag Parikh Long Term Equity Fund 21.57
Franklin India Technology Fund 16.83
Axis Growth Opp Fund 15.70
Aditya Birla SL Dividend Yield Fund 8.54
DSP Natural Res & New Energy Fund 6.80
DSP Healthcare Fund 6.37
SBI Technology Opp Fund 5.50
Aditya Birla SL Digital India Fund 5.2
SBI Focused Equity Fund 3.94
Franklin India Focused Equity Fund 2.56
Franklin India Bluechip Fund 2.23
IDFC Multi Cap Fund 1.86
ICICI Pru FMCG Fund 1.24
Franklin India Equity Advantage Fund 0.97
Franklin India Prima Fund 0.30

The percentages are as on Oct 31st 2019 except the funds marked in red which are dated Sep 30th 2019.

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That is just 16 funds in total! Out of these Parag Parikh Long Term Equity Fund and Axis Growth Opportunities Fund (with significantly lower exposure) are the only non-thematic diversified equity funds.

There are two dividend yield funds in the top five including Templeton India Equity Income Fund. Beyond the top five, the exposure is too small to make a difference.

The lack of choices here is baffling and hope it will change in future. The ideal scenario would be a hybrid equity index fund tracking say Nifty and the S&P 500 or the MSCI World Index or the S & P Global 1200 (see for details: Will you choose a risky mutual fund if it has a chance of beating the index?) etc.

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5 Comments

  1. How about ICICI Prudential US Blue chip Fund ?
    Any particular reason why this was excluded from the list given in the article.

  2. Pattu sir, there is Aditya Birla Sun Life International Equity Fund Plan B, which is allowed to invest upto 35% of its portfolio in international stocks. Its benchmark is a combination of 65% S&P BSE 200 TRI + 35% S&P Global 1200.

  3. Pattu sir, Aditya Birla Sun Life International Equity Fund Plan B is allowed to invest upto 35% in international stocks. Its benchmark is a combination of 65% S&P BSE 200 TRI + 35% S&P Global 1200.

  4. Dear Pattu sir,

    I understand this list has funds which has atleast 65% of Indian stocks, if possible can you review the international funds? like Motilal Oswal Nasdaq / Franklin US Bluechip etc.?

    Regards,
    Deva

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