List of the Top International Index Funds 2026

International index funds in India are mutual fund schemes that give Indian investors passive exposure to overseas markets by tracking a foreign index, such as the S&P 500, Nasdaq-100, MSCI World, or other global benchmarks. They provide access to some of the world’s largest companies across sectors like technology, healthcare, financials, and consumer goods. Below is a list of the top International Index Funds available in India, along with key details, benefits, risks, and factors to consider before investing.

Top International Index Funds in India

Here is a list of the top international index funds in India, along with their performance and key parameters.

Disclaimer: Please note that the above list of International Index Funds is for educational purposes only, and is not recommendatory. Please do your own research or consult your financial advisor before investing. The data is derived from Tickertape Mutual Fund Screener and is subject to real-time updates.

Note: The data on the list of international index funds is from 16th April 2026. This data is derived from the Tickertape Mutual Funds Screener.

• Plan: Growth
• AUM: Sorted from highest to lowest

Pro Tip: You can use Tickertape’s Mutual Fund Screener to research and evaluate funds with over 50+ pre-loaded filters and parameters.

What are International Index Funds?

International index funds are passively managed mutual funds that replicate the performance of a foreign stock market index. These funds invest in equity securities that constitute the index they track, providing Indian investors with exposure to global markets without the complexity of direct foreign investing. International index funds in India typically track indices such as:

• S&P 500 – the 500 largest publicly listed companies in the United States
• Nasdaq 100 – the 100 largest non-financial companies listed on the Nasdaq exchange, with heavy technology sector representation

Overview of Top International Index Funds

• ICICI Prudential Nasdaq 100 Index Fund: ICICI Prudential Nasdaq 100 Index Fund is a passively managed index fund that seeks to replicate the performance of the Nasdaq 100 Index, before fees and expenses. The fund invests in equity securities of companies included in the Nasdaq 100 Index, which comprises 100 of the largest non-financial companies listed on the Nasdaq Stock Market.
• Motilal Oswal S&P 500 Index Fund: Motilal Oswal S&P 500 Index Fund is a passively managed fund that tracks the S&P 500 Index, which represents 500 of the largest publicly traded companies in the United States. The index spans multiple sectors, including information technology, healthcare, financials, consumer discretionary, communication services, and industrials. 

Taxation on International Index Funds

International index funds are classified as non-equity funds for tax purposes in India, as they invest primarily in foreign equities. The taxation on international index funds is as follows:

Note: With effect from 1st April 2025, international fund of funds and overseas index funds have been reclassified under the debt fund taxation regime. Both STCG and LTCG are taxed as per the investor’s applicable income tax slab rate, irrespective of holding period. Please verify the latest tax rules or consult a tax advisor before investing.

How to Invest in International Index Funds?

You can start investing in international index funds by following these steps:

• You can invest in international index funds through smallcase
• The next step is to research and identify the international index fund that aligns with your investment objective and target geography. Tools like the Tickertape Mutual Fund Screener can help you filter and compare funds based on parameters such as tracking error, expense ratio, and fund size.
• Once you shortlist the funds, visit smallcase, log in, and search for the fund by name. You can then choose the investment mode, either a one-time lump sum or a SIP plan, and complete the process.

Who Should Invest in International Index Funds?

• Investors Seeking Geographic Diversification: International index funds allow investors to spread risk beyond Indian equities. Investors looking to reduce dependency on domestic market cycles may use these funds as part of a broader portfolio strategy.
• Investors with Long-Term Capital Appreciation Goals: These funds provide exposure to developed market economies such as the United States, which have historically generated sustained long-term growth. They are suited for investors with a multi-year investment horizon.
• Investors Who Understand Currency Risk: Returns from international index funds are influenced by INR/USD or other currency exchange rate movements. Investors should understand that currency fluctuations can amplify or reduce returns in rupee terms.
• Investors Who Want Passive, Low-Cost Exposure: Index funds generally carry lower expense ratios compared to actively managed international funds. Investors seeking cost-efficient access to global markets may prefer index-based approaches.

Benefits of Investing in International Index Funds

• Access to Global Market Leaders: International index funds provide direct exposure to the world’s largest companies. Indices like the S&P 500 and Nasdaq 100 include dominant global corporations in technology, healthcare, and consumer sectors that are not listed on Indian exchanges.
• Geographic Diversification: Investing in international markets reduces dependence on India-specific economic and political cycles. Global diversification can help stabilise portfolio returns over the long term when domestic markets face periods of underperformance.
• Currency Appreciation Potential: Since international index funds invest in foreign assets, a depreciation in the Indian rupee against the US dollar or other currencies can enhance returns in rupee terms, providing an additional return layer beyond the underlying index performance.
• Low Expense Ratios: Passively managed index funds typically carry lower total expense ratios compared to actively managed international funds. Lower costs help preserve more of the gross return generated by the underlying index.
• Transparency and Simplicity: International index funds replicate a publicly available benchmark, making their portfolio composition straightforward and easy to monitor. Investors can track index performance to assess alignment with the fund’s returns.
• Exposure to Structural Growth Themes: Indices such as the Nasdaq 100 provide concentrated exposure to technology and innovation-driven companies, allowing investors to participate in structural themes such as artificial intelligence, cloud computing, and digital transformation.

Risks of Investing in International Index Funds

• Currency Risk: Returns in rupee terms depend not only on index performance but also on the INR/USD or other exchange rate movements. Rupee appreciation against the foreign currency can reduce returns, even if the underlying index performs positively.
• Regulatory and Taxation Changes: International funds are subject to specific regulatory constraints in India, including SEBI’s overseas investment limits. Taxation on such funds can change, as seen with the reclassification of overseas index funds under the debt fund tax treatment.
• Tracking Error: International index funds may not perfectly replicate the performance of the underlying index due to transaction costs, currency conversion, rebalancing frequency, and differences in market timings. Higher tracking error can result in deviation from benchmark returns.
• Geopolitical and Global Market Risk: Global factors such as US monetary policy, geopolitical conflicts, trade policy changes, and recession risks can affect international index performance. Indian investors are exposed to macroeconomic conditions beyond domestic control.
• Valuation Risk: Some international indices, particularly the US markets, may be trading at elevated valuations during certain periods. Higher entry valuations can reduce potential forward returns over medium-term investment horizons.
• Overseas Investment Limit Restrictions: SEBI and RBI regulate the total amount that mutual funds can invest overseas. When industry-wide limits are reached, fund houses may temporarily stop accepting subscriptions, limiting investor access during certain market phases.

Factors to Consider Before Investing in International Index Funds

• Index Selection and Composition: Different international indices offer different sector and geographic concentrations. The Nasdaq 100 is heavily weighted towards technology, while the S&P 500 provides broader sector exposure. Investors should assess whether the index composition aligns with their investment objective.
• Tracking Error: A lower tracking error indicates the fund closely follows the index. Comparing tracking error across funds tracking the same index helps identify which fund replicates the benchmark more accurately.
• Expense Ratio: Since international index funds are passively managed, expense ratios should generally be low. Higher expense ratios reduce net returns and widen the gap between index performance and the investor’s actual return.
• Currency Exposure and Hedging: Most international index funds in India are unhedged, meaning returns are affected by INR/USD movements. Some funds may offer currency-hedged options. Investors should understand their preferred currency exposure approach.
• Overseas Investment Limit Status: Check whether the fund is currently open for subscriptions, as SEBI-mandated overseas investment limits may pause new investments during certain periods.
• Role in Overall Portfolio Allocation: International index funds serve as a diversification tool rather than a core domestic equity replacement. Investors should determine an appropriate allocation size based on their overall portfolio strategy and risk appetite.

Conclusion

International index funds provide Indian investors with a cost-efficient way to access global markets, particularly the US equity market, through indices like the S&P 500 and Nasdaq 100. They offer geographic diversification, currency appreciation potential, and exposure to some of the world’s largest and most innovative companies.

However, these funds carry currency risk, regulatory constraints, tracking error, and sensitivity to global macroeconomic conditions. Before investing, consider the index composition, expense ratio, tracking error, currency exposure, and the fund’s subscription status due to overseas investment limits.

To analyse international index funds in detail, use the Tickertape Mutual Fund Screener, which provides 50+ filters. You can compare funds based on returns, risk metrics, expense ratio, tracking error, and consistency using pre-built filters for structured evaluation.

Frequently Asked Questions on International Index Funds in India