International funds in September 2026: what changed

The year looks different

In late May, the median overseas equity fund-of-funds had returned 44.27% over a year. On Thursday, 17 September 2026, the same measure stood at 26.18%.

Most of that drop is the calendar, not the funds. Since our look in late May, the median equity fund's NAV has moved only −1.29%, and USD/INR is almost exactly where it was: 95.91 on 27 May, 96.13 on 17 September. What changed is the start of the one-year window. In May it began with the dollar at 85.16 rupees; now it begins at 87.88, on 17 September 2025.

These figures cover the Direct plan, Growth option of funds in the FoF Overseas category, which buy foreign funds or ETFs. The five US Treasury funds are left out of the equity figures. All NAVs are dated 17 September 2026.

May and September side by side

In May, 25 of the 47 equity funds were at a record NAV. On 17 September none was, and no fund was within 1.5% of its peak.

To take the currency out, divide one plus each return by one plus the dollar's rise over the same window. Over three years the dollar rose 5.01% a year (from 83.03 on 15 September 2023) and over five years 5.50% a year (from 73.56 on 17 September 2021). With the rupee held flat, the median three-year return is 18.26% a year and the five-year 7.16%. The currency supplied about 5.9 points a year in both.

So far in 2026, the median equity fund is up 18.93% and the dollar 7.09%, from 89.77 on 31 December 2025.

The past three months, fund by fund

Over the past month the median equity fund lost 2.37%, and over three months it gained 0.43%. The spread underneath was wide:

Of the 47 equity funds, 20 rose between late May and 17 September and 27 fell. The Mirae Asset fund, May's best one-year performer at 105.74%, is now 19.95% below its peak NAV, the furthest of any fund in the category.

Two funds now show a one-year loss, where none did in May: Invesco Global Consumer Trends (−3.52%) and Kotak International REIT FoF (−0.31%).

The US index funds barely moved. The three Nasdaq-100 fund-of-funds lost between 1.29% and 1.48% since late May, and now show one-year returns of 32.43% to 33.11%.

The T-bill fund, again

Bandhan US Treasury Bond 0-1 year FoF is the cleanest view of the rupee, because its own dollar return is small. It returned 13.04% over the year in rupees, which is about 3.34% with the rupee held flat. About 10 of its 13 points came from the currency. Since late May it has gained 1.16%.

What this does not tell you

A one-year return depends on where the year starts. The funds lost little since May, yet their one-year figure fell by 18 points. Any single trailing number carries its start date with it.

Not every fund holds dollars. Funds investing in China, Europe, Brazil or Asia hold those currencies, so USD/INR is only an approximation for them.

The rupee can turn. Its weakest close against the dollar in our record so far is 96.88, on 24 July 2026. If it strengthens, the currency effect runs the other way. Nothing here is a recommendation to buy or avoid any fund.

Where to go from here

The May edition is international fund returns in May. The FoF overseas page ranks every fund, and currency risk in international funds explains the mechanics.

For the rupee against other currencies this year, see the rupee against major currencies. For how an overseas slice fits into a portfolio, read global core and satellite.