Many mutual fund investors have missed out on the boom in international markets due to the regulatory restrictions on fresh investments into such funds. Data shows that funds focused on stocks overseas delivered some of the best returns. Those who stayed invested, cutting out the noise and retaining their investments in these funds for last three years, have benefited from the overseas markets rally. The asset under fund of funds (FoF) of MFs investing in global markets increased 28 per cent to ₹35,965 cror ...

Core Insights - International funds outperformed domestic funds in September, driven by a strong performance in the US tech sector and NASDAQ 100 [16][19] - Overall, equity mutual funds showed stable but subdued performance amid global challenges such as tariff concerns and geopolitical tensions [16][19] Fund Performance - The top-performing fund was DSP World Mining Overseas Equity Omni FoF, which delivered a return of 13.15% in September, followed by Mirae Asset Global Electric & Autonomous Vehicles Equity Passive FOF with 11.88% [1][19] - Other notable performers included Invesco Global Consumer Trends FoF at 11.27%, Mirae Asset Hang Seng TECH ETF FoF at 11.22%, and Mirae Asset Global X Artificial Intelligence & Technology ETF FoF at 10.68% [19] - A total of 577 funds were analyzed, with 268 providing positive returns and 305 yielding negative returns [19] Negative Performers - The worst-performing funds included Motilal Oswal Midcap Fund (-5.59%), Motilal Oswal Multi Cap Fund (-4.88%), and Motilal Oswal Business Cycle Fund (-4.79%) [10][19] - Technology sector funds also faced losses, with Kotak Technology Fund and others losing between 3.20% to 4.41% [11][19] Market Outlook - The market outlook remains positive entering the final quarter of CY25, supported by strong GDP growth of 7.8% in Q1 FY26 and revised inflation forecasts of 3.1% for FY26 [17][19] - Rate cuts from the RBI and recent GST cuts are expected to enhance corporate profitability and consumption [17][19] Investment Strategy - For SIP investors, it is advised to continue existing investments and consider using festive bonuses to enhance contributions [17][19] - New lump-sum investors are recommended to adopt a staggered approach over 3-4 weeks, transitioning from debt to equity to manage volatility [17][19]