International equity Fund of Funds (FoF)

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

An international equity Fund of Funds (FoF) is a mutual fund scheme that invests in foreign equity mutual fund schemes operated outside India, providing Indian retail investors access to global markets through a familiar mutual fund wrapper. The category is the dominant Indian channel for accessing foreign equity through mutual fund structures, complementing the alternative Liberalised Remittance Scheme (LRS) direct-foreign-investing route.

International equity FoFs are subject to:

The overseas investment cap (USD 7 billion industry, USD 1 billion per AMC).
The post-2023 debt-oriented tax treatment.
Double-TER structure (Indian FoF TER + foreign-fund TER).

For Indian retail investors, the trade-offs versus direct LRS are operational simplicity for the FoF route versus full universe access and potentially lower fees for the LRS route.

International Equity FoF on WebNotes

International equity Fund of Funds (FoF)