Share Market News / Have you also invested money in funds? Returns are being maintained by Kuber's treasure

Share Market News: When it comes to investing, most people want their money to be safe and also get good profits. This is why many people choose fixed deposits (FDs), as it is low risk and, for example, can give a return of up to 50% in 7 years at an interest rate of 8%. But did you know that some international mutual funds have given much higher returns in 2025? Some foreign funds have given a return of up to 58% since the beginning of this year, which is much higher than FDs.

So the question is, if international funds are giving such good returns, then why doesn't everyone invest in them? Let's understand the reason and the nuances of these funds.

Challenges of investing in international mutual funds

Investing in international mutual funds is not so easy, as its terms and conditions are different from normal mutual funds in India. In February 2022, SEBI (Securities and Exchange Board of India) banned domestic mutual fund companies from making new investments in foreign stocks. The reason for this was the foreign investment limit set by the RBI (Reserve Bank of India). These limits are as follows:

Total industry limit: $7 billion

Limit for a mutual fund house: $1 billion

Limit for investment in foreign ETFs: $1 billion

However, later SEBI gave some relaxation, after which some international funds opened for investment again. But still only 26 out of 70 funds are accepting new investments, and most of these are ETFs (exchange traded funds).

Top performing international funds in 2025

According to data from ACE MF, some international funds have performed brilliantly this year. Here are the top 5 funds and their returns:

• Mirae Asset Hang Seng TECH ETF FoF: 57.8% return
• Mirae Asset NYSE FANG+ ETF FoF: 50.7% return
• Mirae Asset Hang Seng TECH ETF: 49.0% return
• Nippon India ETF Hang Seng BeES: 42.5% return
• Mirae Asset S&P 500 Top 50 ETF FoF: 35.2% return

These figures show that some international funds have performed many times better than FDs. But are they right for every investor?

How to invest in international funds?

• If you want to invest in these funds, there is still a way: buying ETFs directly from the stock exchange. ETF units can be bought and sold on the stock exchange like shares. However, it is important to keep some things in mind:
• Trading price: The price of an ETF may be more or less than its net asset value (NAV).
• Liquidity: Pay attention to the number of buyers and sellers in the ETF, as low liquidity can lead to price fluctuations.
• Bid-ask spread: The difference between the buying and selling price can affect your returns.

What are the risks?

• Investing in international funds has many benefits, but there are some risks associated with them:
• Market risk: Fluctuations in foreign markets affect these funds.
• Currency risk: Changes in the value of foreign currency can affect your returns.
• Strictness of rules: Investment limit and availability may be limited due to SEBI and RBI rules.

Advice for investors

International mutual funds can give better returns, but for this, correct information, time, and ability to take some risk are necessary. If you want less risk, then FD is still a safe option. But if you are willing to take a little risk in the hope of higher returns, then investing in ETF through stock exchange can be a good option.

Disclaimer: Here we have just given you information. This is not an investment advice. Investment in stock market and mutual funds is subject to market risks. Before investing, definitely take the advice of your financial advisor.