Which funds hold foreign equity like Parag Parikh Flexi Cap Fund?

Published: December 22, 2021 at 7:00 am

A reader asks, “I am looking for equity funds that hold foreign stocks (overseas equity) but also hold 65% of Indian equity similar to Parag Parikh Flexi Cap Fund so that it will be taxed as an “equity fund”. Can you help?”

The advantage of holding such funds compared to a Nasdaq 100 or S&P 500 index fund is that the fund manager will handle the rebalancing between Indian and foreign stocks with no tax outgo on our side. The tax on redemption will also be lower since these Index funds or an international fund of funds will be taxed as a “non-equity” fund. For a since NFO investor account in Parag Parikh Flexicap, see Portfolio Audit 2021: How my goal-based investments fared this year.

The disadvantages are fund manager risk and popularity risk like, for instance, with Parag Parikh Flexicap. For investors with reasonable expectations who do not worry about “star ratings”, this is a reasonable risk to take since there are currently no passive options.

How to interpret this list: Funds holding overseas equity and 65% of Indian equity (as of Nov 31st 2021) are listed below. The numbers shown can vary considerably from month to month. The tax status of some funds can also vary from equity to “non-equity”.

Therfore the reader should be aware that the numbers below indicate that the fund “can hold overseas equity”. They should then consult individual scheme information documents to learn the range of permissible international equity.

Join over 32,000 readers and get free money management solutions delivered to your inbox! Subscribe to get posts via email!
🔥Enjoy massive discounts on our robo-advisory tool & courses! 🔥

Some of these funds hold overseas mutual fund units. The weights below are the sum of overseas direct equity and overseas mutual fund units (when applicable).

List of Indian Equity Funds holding International Equity

The numbers are as of Nov 30 2021. None of the funds listed below are investment recommendations.  We could identify a total of 38 such funds.

CategoryFundOverseas Equities%
ValueDSP Value Fund31.83
FlexicapParag Parikh Flexi Cap Fund30.36
Thematic MiscAxis ESG Equity Fund27.03
Technology FundsFranklin India Technology Fund26.72
Thematic MiscAxis Special Situations Fund24.9
Energy and powerDSP Natural Res & New Energy Fund23.73
Large and MidcapAxis Growth Opp Fund23.53
Technology FundsSBI Technology Opp Fund23.04
MNCICICI Pru MNC Fund20.47
Multi-assetNippon India Multi-Asset Fund19.78
Thematic MiscKotak Pioneer Fund18.2
ConsumptionICICI Pru FMCG Fund16.56
FocusedSBI Focused Equity Fund15.13
large CapPrincipal Large Cap Fund13.96
MNCSBI Magnum Global Fund13.28
Aggressive hybridPGIM India Hybrid Equity Fund11.22
Dividend YieldAditya Birla SL Dividend Yield Fund10.71
Technology FundsICICI Pru Technology Fund10.38
Pharma and HealthcareDSP Healthcare Fund10.23
Dividend YieldTempleton India Equity Income Fund8.07
Thematic MiscICICI Pru ESG Fund7.22
Service IndustryICICI Pru Exports & Services Fund6.49
Thematic MiscSBI Magnum Equity ESG Fund6.15
Thematic MiscICICI Pru Business Cycle Fund5.92
ValueICICI Pru Value Discovery Fund5.43
Thematic MiscTata Digital India Fund5.29
ContraSBI Contra Fund4.74
Thematic MiscAditya Birla SL Digital India Fund4.63
Thematic MiscAditya Birla SL Digital India Fund4.63
FlexicapSBI Flexicap Fund4.31
Dividend YieldICICI Pru Dividend Yield Equity Fund3.82
ConsumptionSBI Consumption Opp Fund2.27
Multi-assetSBI Multi-Asset Allocation Fund1.82
Balanced AdvantageSBI Balanced Advantage Fund1.38
Large and MidcapFranklin India Equity Advantage Fund1.34
large CapICICI Pru Bluechip Fund0.55
Service IndustrySundaram Services Fund0.37

We recommend that investors not buy any fund only for its overseas equity investments. They should ensure if the fund category is suitable for their need and further investigate a particular funds investment strategy before investing.

Do share this article with your friends using the buttons below.

🔥Enjoy massive discounts on our courses, robo-advisory tool and exclusive investor circle! 🔥& join our community of 5000+ users!
Use our Robo-advisory Tool for a start-to-finish financial plan! More than 1,000 investors and advisors use this!
New Tool! => Track your mutual funds and stock investments with this Google Sheet!
We also publish monthly equity mutual funds, debt and hybrid mutual funds, index funds and ETF screeners and momentum, low-volatility stock screeners.
Follow Freefincal on Google News
Follow Freefincal on Google News
Subscribe to the freefincal Youtube Channel. Subscribe button courtesy: Vecteezy.
Subscribe to the freefincal Youtube Channel.
Follow freefincal on WhatsApp Channel
Follow freefincal on WhatsApp
Podcast: Let's Get RICH With PATTU! Every single Indian CAN grow their wealth! 
Listen to the Lets Get Rich with Pattu Podcast
Listen to the Let's Get Rich with Pattu Podcast
You can watch podcast episodes on the OfSpin Media Friends YouTube Channel.
Lets Get RICH With PATTU podcast on YouTube
Let's Get RICH With PATTU podcast on YouTube.

  • Do you have a comment about the above article? Reach out to us on Twitter: @freefincal or @pattufreefincal
  • Have a question? Subscribe to our newsletter using the form below.
  • Hit 'reply' to any email from us! We do not offer personalized investment advice. We can write a detailed article without mentioning your name if you have a generic question.

Join over 32,000 readers and get free money management solutions delivered to your inbox! Subscribe to get posts via email!

About The Author

Pattabiraman editor freefincalDr M. Pattabiraman(PhD) is the founder, managing editor and primary author of freefincal. He is an associate professor at the Indian Institute of Technology, Madras. He has over ten years of experience publishing news analysis, research and financial product development. Connect with him via Twitter(X), Linkedin, or YouTube. Pattabiraman has co-authored three print books: (1) You can be rich too with goal-based investing (CNBC TV18) for DIY investors. (2) Gamechanger for young earners. (3) Chinchu Gets a Superpower! for kids. He has also written seven other free e-books on various money management topics. He is a patron and co-founder of “Fee-only India,” an organisation promoting unbiased, commission-free investment advice.
Our flagship course! Learn to manage your portfolio like a pro to achieve your goals regardless of market conditions! More than 3,000 investors and advisors are part of our exclusive community! Get clarity on how to plan for your goals and achieve the necessary corpus no matter the market condition is!! Watch the first lecture for free!  One-time payment! No recurring fees! Life-long access to videos! Reduce fear, uncertainty and doubt while investing! Learn how to plan for your goals before and after retirement with confidence.
Our new course!  Increase your income by getting people to pay for your skills! More than 700 salaried employees, entrepreneurs and financial advisors are part of our exclusive community! Learn how to get people to pay for your skills! Whether you are a professional or small business owner who wants more clients via online visibility or a salaried person wanting a side income or passive income, we will show you how to achieve this by showcasing your skills and building a community that trusts and pays you! (watch 1st lecture for free). One-time payment! No recurring fees! Life-long access to videos!   
Our new book for kids: “Chinchu Gets a Superpower!” is now available!
Both boy and girl version covers of Chinchu gets a superpower
Both the boy and girl-version covers of "Chinchu Gets a superpower".
Most investor problems can be traced to a lack of informed decision-making. We made bad decisions and money mistakes when we started earning and spent years undoing these mistakes. Why should our children go through the same pain? What is this book about? As parents, what would it be if we had to groom one ability in our children that is key not only to money management and investing but to any aspect of life? My answer: Sound Decision Making. So, in this book, we meet Chinchu, who is about to turn 10. What he wants for his birthday and how his parents plan for it, as well as teaching him several key ideas of decision-making and money management, is the narrative. What readers say!
Feedback from a young reader after reading Chinchu gets a Superpower (small version)
Feedback from a young reader after reading Chinchu gets a Superpower!
Must-read book even for adults! This is something that every parent should teach their kids right from their young age. The importance of money management and decision making based on their wants and needs. Very nicely written in simple terms. - Arun.
Buy the book: Chinchu gets a superpower for your child!
How to profit from content writing: Our new ebook is for those interested in getting side income via content writing. It is available at a 50% discount for Rs. 500 only!
Do you want to check if the market is overvalued or undervalued? Use our market valuation tool (it will work with any index!), or get the Tactical Buy/Sell timing tool!
We publish monthly mutual fund screeners and momentum, low-volatility stock screeners.
About freefincal & its content policy. Freefincal is a News Media Organization dedicated to providing original analysis, reports, reviews and insights on mutual funds, stocks, investing, retirement and personal finance developments. We do so without conflict of interest and bias. Follow us on Google News. Freefincal serves more than three million readers a year (5 million page views) with articles based only on factual information and detailed analysis by its authors. All statements made will be verified with credible and knowledgeable sources before publication. Freefincal does not publish paid articles, promotions, PR, satire or opinions without data. All opinions will be inferences backed by verifiable, reproducible evidence/data. Contact information: letters {at} freefincal {dot} com (sponsored posts or paid collaborations will not be entertained)
Connect with us on social media
Our publications

You Can Be Rich Too with Goal-Based Investing

You can be rich too with goal based investingPublished by CNBC TV18, this book is meant to help you ask the right questions and seek the correct answers, and since it comes with nine online calculators, you can also create custom solutions for your lifestyle! Get it now.
Gamechanger: Forget Startups, Join Corporate & Still Live the Rich Life You Want Gamechanger: Forget Start-ups, Join Corporate and Still Live the Rich Life you wantThis book is meant for young earners to get their basics right from day one! It will also help you travel to exotic places at a low cost! Get it or gift it to a young earner.

Your Ultimate Guide to Travel

Travel-Training-Kit-Cover-new This is an in-depth dive into vacation planning, finding cheap flights, budget accommodation, what to do when travelling, and how travelling slowly is better financially and psychologically, with links to the web pages and hand-holding at every step. Get the pdf for Rs 300 (instant download)