Yes, you can invest in internation mutual funds. International funds offer exposure to global markets and diversify your portfolio beyond Indian equities. They can help hedge currency risk and capture growth from developed markets like the US or emerging sectors like tech. They may carry higher volatility and global risks. However, RBI has set certain limits for the mutual funds for investing in overseas markets to manage India’s foreign exchange reserves and ensure that capital flows are managed responsibly. As and when these limits are breached, mutual funds are prevented from taking fresh subscriptions in schemes that invest in foreign assets. Hence, you should consider them only as a small portion of your mutual fund portfolio and overall asset allocation.
You can also invest overseas through the GIFT City Fund offered by the mutual fund companies using the Liberalised Remittance Scheme (LRS) route as per the yearly limits as specified by the Reserve Bank of India from time to time.
Considering all these factors, it is wise to consult a financial advisor or mutual fund distributor before investing.
