Investors seeking to diversify their portfolios beyond Indian equities can gain overseas market exposure through domestic mutual funds. Several Indian equity schemes invest in international stocks, allowing investors to access global markets without opening a separate overseas brokerage account. However, the level of foreign investment and the sectors covered differ from one fund to another.
According to portfolio disclosures for August 2026 compiled by Value Research, Edelweiss Technology Fund had the highest international allocation among the 10 domestic equity schemes listed, with 24.38% of its net assets invested overseas. Franklin India Technology Fund ranked second at 20.03%, followed by Kotak Pioneer Fund at 16.81%.
The schemes also reported different one-year returns as of October 11, 2026. While SBI Children’s Fund – Investment Plan gained 13.58%, Franklin India Technology Fund and SBI Technology Opportunities Fund recorded negative returns over the same period.
Edelweiss Technology Fund Leads in Overseas Allocation
Edelweiss Technology Fund topped the ranking with 24.38% of its portfolio invested in international markets. Its overseas holdings were valued at ₹197 crore, while its direct plan delivered a one-year return of 4.25%, according to Value Research data.
Franklin India Technology Fund secured the second position, allocating 20.03% of its portfolio to overseas investments worth ₹352 crore. However, its direct plan recorded a negative one-year return of 12.19%.
Kotak Pioneer Fund ranked third, with 16.81% of its assets invested internationally. Its overseas holdings were valued at ₹720 crore, and its direct plan generated a one-year return of 7.56%.
DSP Natural Resources and New Energy Fund and SBI Technology Opportunities Fund followed, with international allocations of 13.22% and 13.19%, respectively. Their direct plans returned 8.56% and -9.94% over the one-year period.
Top 10 Mutual Funds With the Highest International Allocation
The following ranking is based on Value Research portfolio disclosures for August 2026. The returns shown are for direct plans over one year, as of October 11, 2026.
| Mutual fund scheme | Overseas allocation | 1-year return |
|---|---|---|
| Edelweiss Technology Fund | 24.38% | 4.25% |
| Franklin India Technology Fund | 20.03% | -12.19% |
| Kotak Pioneer Fund | 16.81% | 7.56% |
| DSP Natural Resources and New Energy Fund | 13.22% | 8.56% |
| SBI Technology Opportunities Fund | 13.19% | -9.94% |
| SBI Children’s Fund – Investment Plan | 12.64% | 13.58% |
| DSP Value Fund | 12.56% | 1.56% |
| Parag Parikh Flexi Cap Fund | 11.06% | -4.55% |
| Axis Innovation Fund | 10.66% | 12.15% |
| SBI Focused Fund | 10.44% | 8.12% |
Source: Value Research. Overseas allocations are based on August 2026 portfolio disclosures. One-year returns are for direct plans as of October 11, 2026.
Among these 10 schemes, SBI Children’s Fund – Investment Plan recorded the strongest one-year performance at 13.58%. Axis Innovation Fund followed with a return of 12.15%.
At the other end of the table, Franklin India Technology Fund posted the weakest performance, declining 12.19%. SBI Technology Opportunities Fund also delivered a negative return of 9.94%.
Parag Parikh Flexi Cap Fund ranked eighth in terms of overseas allocation, with 11.06% of its portfolio invested internationally. However, its overseas holdings were valued at ₹16,300 crore, the highest absolute value among the funds listed. This highlights the distinction between the percentage of a fund’s assets invested abroad and the actual value of those investments.
What Investors Should Consider Before Investing
International exposure can help investors diversify beyond domestic markets, but it does not guarantee lower risk or better returns. A fund’s performance depends on several factors, including its investment strategy, portfolio composition and the conditions affecting the markets in which it invests.
Technology-focused funds, for example, may be particularly sensitive to changes in global technology stock valuations and earnings expectations. Currency movements can also influence returns from overseas investments.
Before choosing a mutual fund, investors should review its investment objective, domestic and international holdings, portfolio concentration, expenses and performance across different market conditions. Comparing overseas allocation alone may not provide a complete picture of a scheme’s suitability.
One-year returns can help illustrate recent performance, but they should not be considered a reliable indicator of future results. Investors should assess their financial goals, investment horizon and risk tolerance before making a decision.
Disclaimer: This article is for informational and educational purposes only and does not constitute investment advice or a recommendation to buy or sell any mutual fund. Portfolio allocations and returns are based on the cited Value Research data for the stated periods and may change. Mutual fund investments are subject to market risks. Investors should read scheme-related documents carefully and consult a qualified financial adviser if required.