Top 5 International Mutual Funds Based on 5-Year CAGR

International mutual funds invest in global equities and fixed-income securities, allowing investors to diversify beyond domestic markets. They help mitigate country-specific risks and provide exposure to global economic growth.

With the rupee depreciating over time, investing in international funds can also provide a hedge against currency risk. Moreover, they allow investors to capitalise on opportunities in different economies and sectors, which may not be available in the Indian stock market.

Top 5 Best Performing International Mutual Funds

Here are the best-performing international mutual funds based on their 5-year CAGR (Compounded Annual Growth Rate): 

Impact of TCS Changes on International Investments

The recent announcement by Finance Minister Nirmala Sitharaman regarding the increase in the threshold for tax collected at source (TCS) on remittances under the RBI’s Liberalised Remittance Scheme (LRS) from ₹7 lakh to ₹10 lakh is expected to ease the tax burden on investors.

While this does not affect mutual fund returns directly, it makes investing in international markets slightly more convenient for Indian investors, reducing the upfront tax outflow.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Mutual Fund investments are subject to market risks, read all scheme-related documents carefully.