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US Mutual Funds in India: Best Mutual Funds in US
Table of Contents
- US Mutual Funds
- Types of US Mutual Funds
- Top 10 Mutual Funds USA (Best Mutual Funds in US)
- 1. ICICI Prudential US Bluechip Equity Fund
- 2. Edelweiss US Value Equity Offshore Fund Dir (G)
- 3. Edelweiss US Technology FoF Dir (G)
- 4. DSP US Flexible Equity Fund of Fund
- 5. Nippon India US Equity Opportunities Fund Dir (G)
- 6. Motilal Oswal Nasdaq 100 FOF Dir (G)
- 7. Franklin India Feeder - Franklin U.S. Opportunities Fund
- 8. Kotak Nasdaq 100 FOF Dir (G)
- 9. Motilal Oswal S&P 500 Index Fund Dir (G)
- 10. Bandhan US Equity FoF Dir (G)
- Why Invest in US stock market?
- Risks Involved
- Conclusion
US Mutual Funds
Mutual Funds in the United States refer to investment methods that combine funds from several investors to purchase a portfolio that includes various types of stocks, bonds, and other securities in the US. Professional fund managers track mutual funds to allow investors access to financial markets without the need to select securities on their own. In today’s blog, we will discuss how you can invest in US mutual funds from India and also cover the top 10 mutual funds in US. US Mutual funds in India means one can invest in US funds, bonds, equities from India and can avail the benefits of the US Stock Market.
US Indices
S&P 500 - Monitors 500 major companies in the US (Apple, Microsoft, Amazon, etc.)
Dow Jones Industrial Average (DJIA) - Contains 30 blue chip companies.
Nasdaq Composite - Tech-centric index (Google, Tesla, Nvidia, etc.)
Russell 2000 - Monitors 2,000 small companies.
Types of US Mutual Funds
-
Equity Funds - comprise larger investment portions in stocks (large-cap, mid-cap, small-cap, and other sectoral funds)
-
Bond Funds - offer investment in bonds from public corporations or the government at a more fixed return where risk is nominal.
-
Index Funds - Follow movements of defined indices like S&P 500 or Nasdaq.
-
Balanced or Hybrid Funds - A combination of different equities and fixed income securities which result in sheltering and growth at the same time.
-
Money Market Funds - Investment in cash or near cash instruments with a greater risk for lower returns.
-
Target Date Funds - Retirement oriented funds where investments are distributed depending on the time horizon.
Top 10 Mutual Funds USA (Best Mutual Funds in US)
Below is the list of top 10 mutual funds in the USA that might be suitable for you to invest in from India.
1. ICICI Prudential US Bluechip Equity Fund
NAV- Rs.69.69 (as of 05 Mar 2025)
|
Return or Risk |
Chance |
Return Outperformance |
|
This fund generates 20% higher returns for each unit of risk it takes. |
In 70% of cases, investors who have held this fund for at least 5 years have seen an annual return of 14.46%. |
Over the past 10 years, this fund has produced the highest return among International funds. |
Fund Details
|
Fund House |
ICICI Prudential Mutual Fund |
|
Launch Date |
01 Jan 2013 |
|
Expense Ratio |
1.25% as of Feb 28, 2025 |
|
Benchmark |
S&P 500 TRI |
|
Min. Investment |
Currently Not Buyable |
|
Risk |
Very High |
|
3 Year Returns |
43.38% |
|
Short Term Capital Gains (STCG) |
20% if redeemed earlier than 12 months |
|
Long Term Capital Gains (LTCG) |
After 12 months, 12.5% tax on gains of Rs.1.25 lac + in a financial year |
Asset Allocation of Equity
|
Asset |
Percentage (%) |
|
Equity |
98.56% |
|
Debt |
0% |
|
Other |
1.44% |
Top 3 Stock Holdings
|
Company |
Holdings |
|
Gilead Sciences Inc. (USA) |
2.87% |
|
Corteva Inc. |
2.8% |
|
The Walt Disney Company |
2.73% |
2. Edelweiss US Value Equity Offshore Fund Dir (G)
NAV- Rs.35.54 (as of 05 Mar 2025)
|
Return or Risk |
Exit Load |
Return Outperformance |
|
This fund generates 20% higher returns for each unit of risk it takes. |
1% if redeemed within 3 months |
Over the past 10 years, this fund has produced the highest return among International funds. |
Fund Details
|
Fund House |
Edelweiss Mutual Fund |
|
Launch Date |
17 Jul 2013 |
|
Expense Ratio |
0.66% as of Feb 28, 2025 |
|
Benchmark |
Russell 1000 |
|
Min. Investment |
SIP- Rs.500 and Lump- Rs.5000 |
|
Risk |
Very High |
|
3 Year Returns |
41.5% |
|
Short Term Capital Gains (STCG) |
20% if redeemed earlier than 12 months |
|
Long Term Capital Gains (LTCG) |
After 12 months, 12.5% tax on gains of Rs.1.25 lac + in a financial year |
Asset Allocation of Equity
|
Asset |
Percentage (%) |
|
Equity |
97.42% |
|
Debt |
3.01% |
|
Other |
-0.43% |
Top 3 Stock Holdings
Holdings bifurcation is not available for this scheme.
3. Edelweiss US Technology FoF Dir (G)
NAV- Rs.26.91 (as of 05 Mar 2025)
|
Return or Risk |
Exit Load |
Return Outperformance |
|
Performing poorly in its category |
1% if redeemed within 3 months |
In the last 3 years, this fund has produced the highest return among International funds. |
Fund Details
Fund House |
Edelweiss Mutual Fund |
|
Launch Date |
14 Feb 2020 |
|
Expense Ratio |
0.68% as of Feb 28, 2025 |
|
Benchmark |
Russel 1000 Equal Weighted Technology |
|
Min. Investment |
SIP- Rs.500 and Lump- Rs.5000 |
|
Risk |
Very High |
|
3 Year Returns |
68.38% |
|
Short Term Capital Gains (STCG) |
20% if redeemed earlier than 12 months |
|
Long Term Capital Gains (LTCG) |
After 12 months, 12.5% tax on gains of Rs.1.25 lac + in a financial year |
Asset Allocation of Equity
|
Asset |
Percentage (%) |
|
Equity |
98.98% |
|
Debt |
1.42% |
|
Other |
-0.4% |
Top 3 Stock Holdings
Holdings bifurcation is not available for this scheme.
4. DSP US Flexible Equity Fund of Fund
NAV- Rs.62 (as of 05 Mar 2025)
|
Return or Risk |
Chance |
Return Outperformance |
|
This fund generates 20% higher returns for each unit of risk it takes. |
For investors who have held this fund for at least 5 years, got a return of 13.19%, 70% of the time. |
In the last 10 years, this fund has produced the highest return among International funds. |
Fund Details
|
Fund House |
DSP Mutual Fund |
|
Launch Date |
01 Jan 2013 |
|
Expense Ratio |
1.55% as of Feb 28, 2025 |
|
Benchmark |
Russel 1000 |
|
Min. Investment |
Not buyable |
|
Risk |
Very High |
|
3 Year Returns |
45.77% |
|
Short Term Capital Gains (STCG) |
20% if redeemed earlier than 12 months |
|
Long Term Capital Gains (LTCG) |
After 12 months, 12.5% tax on gains of Rs.1.25 lac + in a financial year |
Asset Allocation of Equity
|
Asset |
Percentage (%) |
|
Equity |
98.92% |
|
Debt |
- |
|
Other |
1.08% |
Top 3 Stock Holdings
Holdings bifurcation is not available for this scheme.
5. Nippon India US Equity Opportunities Fund Dir (G)
NAV- Rs.38.67 (as of 05 Mar 2025)
|
Return or Risk |
Chance |
Exit Load |
|
This fund generates 20% higher returns for each unit of risk it takes. |
For investors who have held this fund for at least 5 years, got a return of 15.05%, 70% of the time. |
1% if redeemed within 30 days |
Fund Details
|
Fund House |
Nippon India Mutual Fund |
|
Launch Date |
03 Jul 2015 |
|
Expense Ratio |
2.16% as of Feb 28, 2025 |
|
Benchmark |
S&P 500 TRI |
|
Min. Investment |
Not buyable |
|
Risk |
Very High |
|
3 Year Returns |
58.92% |
|
Short Term Capital Gains (STCG) |
20% if redeemed earlier than 12 months |
|
Long Term Capital Gains (LTCG) |
After 12 months, 12.5% tax on gains of Rs.1.25 lac + in a financial year |
Asset Allocation of Equity
|
Asset |
Percentage (%) |
|
Equity |
97.65% |
|
Debt |
0.01% |
|
Other |
2.34% |
Top 3 Stock Holdings
|
Company |
Holdings |
|
Amazon. com Inc. (USA) |
7.07% |
|
Meta Platforms Inc |
6.72% |
|
Alphabet Inc Class A |
6.48% |
6. Motilal Oswal Nasdaq 100 FOF Dir (G)
NAV- Rs.38.95 (as of 05 Mar 2025)
|
Return or Risk |
Chance |
Exit Load |
|
This fund generates 20% higher returns for each unit of risk it takes. |
For investors who have held this fund for at least 5 years, got a return of 23.61%, 70% of the time. |
1% if redeemed within 15 days |
Fund Details
|
Fund House |
Motilal Oswal Mutual Fund |
|
Launch Date |
09 Nov 2018 |
|
Expense Ratio |
0.24% as of Feb 28, 2025 |
|
Benchmark |
Nasdaq 100 TRI |
|
Min. Investment |
Not buyable |
|
Risk |
Very High |
|
3 Year Returns |
76.79% |
|
Short Term Capital Gains (STCG) |
20% if redeemed earlier than 12 months |
|
Long Term Capital Gains (LTCG) |
After 12 months, 12.5% tax on gains of Rs.1.25 lac + in a financial year |
Asset Allocation of Equity
|
Asset |
Percentage (%) |
|
Equity |
100.12% |
|
Debt |
0.24% |
|
Other |
-0.35% |
Top 3 Stock Holdings
Holdings bifurcation is not available for this scheme.
7. Franklin India Feeder - Franklin U.S. Opportunities Fund
NAV- Rs.80.51 (as of 05 Mar 2025)
|
Return or Risk |
Chance |
Return Outperformance |
|
This fund generates 20% higher returns for each unit of risk it takes. |
For investors who have held this fund for at least 5 years, got a return of 13.85%, 70% of the time. |
In the last 10 years, this fund has produced the highest return among International funds. |
Fund Details
|
Fund House |
Franklin Templeton Mutual Fund |
|
Launch Date |
01 Jan 2013 |
|
Expense Ratio |
0.63% as of Feb 28, 2025 |
|
Benchmark |
Russell 3000 Growth TRI |
|
Min. Investment |
SIP Rs.500 & Lump. Rs.5000 |
|
Risk |
Very High |
|
3 Year Returns |
54.7% |
|
Short Term Capital Gains (STCG) |
20% if redeemed earlier than 12 months |
|
Long Term Capital Gains (LTCG) |
After 12 months, 12.5% tax on gains of Rs.1.25 lac + in a financial year |
Asset Allocation of Equity
|
Asset |
Percentage (%) |
|
Equity |
98.65% |
|
Debt |
- |
|
Other |
1.35% |
Top 3 Stock Holdings
Holdings bifurcation is not available for this scheme.
8. Kotak Nasdaq 100 FOF Dir (G)
NAV- Rs.17.88 (as of 05 Mar 2025)
|
Return or Risk |
Exit Load |
Return Outperformance |
|
Performing poorly in its category |
Nil |
In the last 12 years, this fund has produced the highest return among International funds. |
Fund Details
|
Fund House |
Kotak Mahindra Mutual Fund |
|
Launch Date |
11 Jan 2021 |
|
Expense Ratio |
0.25% as of Feb 28, 2025 |
|
Benchmark |
Nasdaq 100 TRI |
|
Min. Investment |
Not buyable |
|
Risk |
Very High |
|
3 Year Returns |
68.67% |
|
Short Term Capital Gains (STCG) |
20% if redeemed earlier than 12 months |
|
Long Term Capital Gains (LTCG) |
After 12 months, 12.5% tax on gains of Rs.1.25 lac + in a financial year |
Asset Allocation of Equity
|
Asset |
Percentage (%) |
|
Equity |
99.97% |
|
Debt |
- |
|
Other |
0.03% |
Top 3 Stock Holdings
Holdings bifurcation is not available for this scheme.
9. Motilal Oswal S&P 500 Index Fund Dir (G)
NAV- Rs.23.4 (as of 05 Mar 2025)
|
Return or Risk |
Exit Load |
Return Outperformance |
|
Performing poorly in its category |
1% if redeemed within 7 days |
In the last 1 year, this fund has produced the highest return among International Index funds. |
Fund Details
|
Fund House |
Motilal Oswal Mutual Fund |
|
Launch Date |
15 Apr 2020 |
|
Expense Ratio |
0.62% as of Feb 28, 2025 |
|
Benchmark |
S&P 500 TRI |
|
Min. Investment |
Not buyable |
|
Risk |
Very High |
|
3 Year Returns |
53.23% |
|
Short Term Capital Gains (STCG) |
20% if redeemed earlier than 12 months |
|
Long Term Capital Gains (LTCG) |
After 12 months, 12.5% tax on gains of Rs.1.25 lac + in a financial year |
Asset Allocation of Equity
|
Asset |
Percentage (%) |
|
Equity |
98.19% |
|
Debt |
0.93% |
|
Other |
0.88% |
Top 3 Stock Holdings
|
Company |
Holdings |
|
Apple Inc. (USA) |
6.87% |
|
Microsoft Corporation (US) |
5.94% |
|
NVIDIA Corporation (USA) |
5.67% |
10. Bandhan US Equity FoF Dir (G)
NAV- Rs.15.64 (as of 05 Mar 2025)
|
Return or Risk |
Exit Load |
Return Outperformance |
|
Performing poorly in its category |
1% if redeemed within 1 year |
In the last 3 years, this fund has produced the highest return among International funds. |
Fund Details
|
Fund House |
Bandhan Mutual Fund |
|
Launch Date |
29 Jul 2021 |
|
Expense Ratio |
0.8% as of Feb 28, 2025 |
|
Benchmark |
Russel 1000 Growth TRI |
|
Min. Investment |
Not buyable |
|
Risk |
Very High |
|
3 Year Returns |
70.76% |
|
Short Term Capital Gains (STCG) |
20% if redeemed earlier than 12 months |
|
Long Term Capital Gains (LTCG) |
After 12 months, 12.5% tax on gains of Rs.1.25 lac + in a financial year |
Asset Allocation of Equity
|
Asset |
Percentage (%) |
|
Equity |
99.67% |
|
Debt |
0.01% |
|
Other |
0.32% |
Top 3 Stock Holdings
Holdings bifurcation is not available for this scheme.
(Source: ET Money)
Why Invest in US stock market?
Investing in the US stock market is probably the most attractive choice at the moment given the relatively sluggish performance from Nifty in the last half a year. With the Indian markets being uncertain, the US market has strong corporate earnings, innovation, and a dominant economy.
-
Global Leaders in Technology and Innovation - Companies like Apple, Microsoft, Nvidia and Tesla are shaping the future.
-
Strongest Market Performers - The S&P 500 and Nasdaq's performance in the last few months has outgrown Nifty.
-
US Dollar Affiliation - Investment in the US allows you to protect yourself from the reduction of INR value.
-
Boasting hi-tech in India - AI, semiconductors, biotech and EVs are being developed in America.
-
A stronghold against volatility in India - The US market offers investment opportunities with diversification and insulation from India's instability.
Nifty 50 vs. US Markets (Last 6 Months Performance)
|
Factor |
Nifty 50 (India) |
US Market (S&P 500 & Nasdaq) |
|
Performance |
Underperformed, facing volatility |
Outperformed, hitting new highs |
|
Key Drivers |
Inflation, high interest rates, FII outflows |
Strong tech earnings, AI boom, Fed rate cut hopes |
|
IT Sector |
Weak due to global slowdown |
Thriving (Nvidia, Microsoft, Meta surging) |
|
Banking Sector |
Pressure due to inflation concerns |
Stable, backed by strong economy |
|
Foreign Investment |
FIIs pulling money out |
FIIs increasing investment in US tech stocks |
|
Currency Impact |
INR depreciation impacting returns |
USD strength attracting global investors |
Risks Involved
International mutual funds carry the same dangers as any other type of investment. Global funds are riskier because the majority of them are equity-based. Investors should choose mutual funds based on their risk tolerance and financial objectives.
Conclusion
Investing in US mutual funds from India offers diversification, robust market performance, and access to multinational corporations. Recently, the US market has surpassed Indian indices because of innovation and tech giants. Purchasing USD assets will assist safeguard wealth in light of the depreciation of the Indian rupee. All things considered, US mutual funds are a fantastic strategy to increase the size of your investment portfolio.
Disclaimer: Not a buy or sell recommendation. No investment advice is given. Past returns do not guarantee future returns. This Mutual Funds analysis is provided solely for informative purposes and should not be considered investment advice. Always conduct research and talk with a financial advisor before investing.
Frequently Asked Questions
This fund has given 76.79% returns in 3 years, which is considered as good
Direct Investment: Register for an account with a US brokerage such as Vanguard, Fidelity, or Charles Schwab.
Via Indian Platforms: US funds can be accessed through certain platforms like Vested, INDmoney, or Stockal.
The RBI's Liberalized Remittance Scheme (LRS) permits foreign investments of up to $250,000.
Mutual fund selection depends on the criteria of time horizon, risk appetite, and the goal of investment. So that mutual fund is best which suits your need.
