Core Insights - Many mutual fund investors have missed opportunities in international markets due to regulatory restrictions on new investments into such funds, while those who remained invested have benefited from overseas market rallies [1][5]. Group 1: Fund Performance - The asset under fund of funds (FoF) investing in global markets increased by 28% to ₹35,965 crore in November from ₹28,065 crore in January, driven by mark-to-market gains [2]. - The HSBC Brazil Fund and Edelweiss Europe Dynamic Equity Offshore Fund achieved the highest returns of 56% and 51%, respectively, over the last year [2]. - The DSP World Gold Mining Overseas Equity Omni FoF and DSP World Mining Overseas Equity Omni FoF delivered exceptional returns of 169% and 80%, respectively, in the past year [3]. Group 2: Regulatory Environment - The Securities and Exchange Board of India (SEBI) has restricted mutual funds from accepting fresh inflows into overseas funds since 2022, capping the mutual fund industry's overseas investment at $7 billion, with a separate limit of $1 billion for exchange-traded funds [4]. Group 3: Investor Behavior - High net worth and ultra-high net worth investors have utilized the Liberalized Remittance Scheme (LRS) to invest in overseas markets, while retail investors who maintained their investments in overseas funds benefited from mark-to-market gains [5]. Group 4: International Market Performance - The Nifty 50 index returned approximately 9% in 2025, while the Dow Jones Industrial Average, Nasdaq Composite, and S&P 500 indices returned 13%, 20%, and 17%, respectively [6]. - The MSCI All Country World Index rose over 21% last year, reaching a record high, with European stocks benefiting from bank-heavy gains [6]. - South Korea's KOSPI index saw a remarkable increase of nearly 76%, while Hong Kong's Hang Seng Index rose nearly 31%, and Japan's Nikkei 225 increased by about 28% [7].