International mutual funds have emerged as the best-performing mutual fund category over the past year, delivering an average return of 37.14% and outperforming every domestic equity fund category, an analysis by ETMutualFunds showed.
The sharp outperformance has left many investors wondering whether they should increase their allocation to international funds or wait for better entry opportunities. Market experts say that the recent rally in international mutual funds has been largely supported by the continued strength of global technology stocks, particularly companies benefiting from the artificial intelligence (AI) boom and currency movements have also played a role, as the depreciation of the rupee against the US dollar has boosted returns for Indian investors holding overseas assets.
