GIFT City & Global Investing · beginner
International Funds Foundation
What international funds are, what diversifying across markets and currencies does and does not do, the three routes to investing abroad, how overseas funds are taxed, and SEBI's limits on overseas investment by mutual funds.
- 01What are International Funds?An international fund, in India, is a SEBI-regulated mutual fund scheme that invests in securities outside India. This lesson explains the two ways such a scheme holds overseas assets, how investors transact in rupees, and what works differently from a domestic scheme.
- 02What International Diversification Means — Markets and CurrencyInternational diversification means holding some investments that depend on economies and markets other than India's. This lesson explains what that does and does not do, and how a rupee investor's result is made up of two parts: the market move and the currency move.
- 03Routes to Investing Abroad — Indian Funds, LRS and GIFT IFSCA resident can reach overseas markets through three routes: an Indian mutual fund scheme that invests abroad, direct investment under RBI's Liberalised Remittance Scheme, and products in the GIFT IFSC. This lesson explains how each works and where they differ.
- 04How Overseas Funds Are Taxed and SEBI's Overseas LimitsHow gains on an Indian mutual fund scheme that invests overseas are taxed under the rules in force in October 2026, why such a scheme is not an equity-oriented fund for tax, and how SEBI's limits on overseas investment by mutual funds work.