Foreign Equity on WebNotes

International ETFs in India

Mon, 18 May 2026 00:00:00 +0000

International ETFs in India are exchange-traded funds listed on Indian stock exchanges that provide exposure to foreign equity markets through Indian-listed ETF structures. The category enables Indian retail investors to access foreign equity (Nasdaq 100, S&P 500, Hang Seng, FTSE 100, etc.) through standard demat-trading accounts without using the Liberalised Remittance Scheme (LRS) route.

For Indian retail investors, international ETFs offer:

Exchange-traded foreign exposure: Standard demat-account access.
Lower TER than international FoFs: Typically 0.50-1.00 per cent vs 1.50-2.50 per cent for FoFs.
Intraday liquidity: Buy and sell during Indian market hours.
Simpler than LRS direct investing: No foreign-banking requirements.

Major international ETFs in India

Nasdaq 100 focus

Motilal Oswal Nasdaq 100 ETF: The largest Indian Nasdaq 100 ETF.
Mirae Asset NYSE FANG+ ETF: Top FANG+ stocks.
Aditya Birla Sun Life Nasdaq 100 ETF.

S&P 500 focus

Motilal Oswal S&P 500 ETF.
HDFC S&P 500 ETF.

Hang Seng / Chinese exposure

Nippon India Hang Seng BeES.
Mirae Asset Hang Seng TECH ETF.

Operational considerations

Overseas investment cap

Subject to the overseas investment cap :

International mutual funds for Indian investors

Mon, 18 May 2026 00:00:00 +0000

International mutual funds for Indian investors are SEBI-approved mutual fund schemes that invest in foreign equity, debt or other assets, providing geographic diversification beyond Indian markets. The category enables Indian retail investors to participate in global markets through familiar mutual fund structures rather than the more complex Liberalised Remittance Scheme (LRS) direct-foreign-investing route.

International mutual funds in India operate under:

The SEBI master circular on overseas investments by mutual funds.
The overseas investment cap (USD 7 billion industry-wide, USD 1 billion per AMC).
RBI’s FEMA framework for foreign-exchange flows.

For Indian retail investors seeking international diversification, the category offers:

Taxation of international funds in India

Tue, 12 May 2026 00:00:00 +0000

Taxation of international mutual funds in India changed fundamentally with the Finance Act 2023, which classified most internationally-oriented funds as “specified mutual funds” for units acquired on or after 1 April 2023. Before that date, international funds investing in overseas equity enjoyed the same 20%-with-indexation LTCG treatment as domestic debt funds (after a 36-month holding period). From 1 April 2023, gains on new units of international funds are treated as short-term capital gains regardless of holding period and are taxed at the investor’s income-tax slab rate with no indexation benefit.