International fund of funds vs direct foreign brokerage for overseas investing

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

Indian investors seeking exposure to overseas equity markets, primarily US equities (S&P 500, Nasdaq) and international indices, can access them through two primary regulated channels: international mutual fund of funds (FoFs) offered by Indian AMCs, or direct foreign brokerage accounts maintained under the RBI’s Liberalised Remittance Scheme (LRS).

Both channels allow Indian resident individuals to invest in foreign equity markets, but differ substantially in regulatory framework, tax treatment, transaction process, limits, and cost.

International Fund of Funds on WebNotes

International fund of funds vs direct foreign brokerage for overseas investing