The number
The median overseas equity fund-of-funds returned 24.56% in the year to 30 September 2026. Over the same year, a Nifty 50 index fund lost money: UTI Nifty 50 Index Fund returned −7.25%.
Part of that gap is not the foreign markets at all. It is the rupee. The dollar rose from ₹88.70 on 30 September 2025 to ₹96.05 on 30 September 2026, a rise of 8.28%. Every dollar a fund held was worth 8.28% more in rupees at the end of the year, before its own price moved at all.
The figures cover the Direct Growth plans of funds in the FoF Overseas category, which invest in foreign funds or ETFs, with NAVs dated 30 September 2026. The five that invest in US Treasury bonds are left out of the equity medians.
Returns with and without the rupee
To strip the currency out, we divide each return by the dollar's move over the same period: a fund that returned 24.56% while the dollar rose 8.28% earned about 15.03% in dollar terms.
| 1 year | 3 years (a year) | 5 years (a year) | |
|---|---|---|---|
| Funds in the median | 46 | 46 | 33 |
| Median return in rupees | 24.56% | 26.25% | 12.99% |
| Dollar's rise against the rupee | 8.28% | 4.91% | 5.26% |
| Median return with the rupee held flat | 15.03% | 20.34% | 7.34% |
| Points from the currency | 9.5 | 5.9 | 5.7 |
Over one year, the rupee supplied about 9.5 of the 24.56 percentage points, close to two-fifths. Over five years the share is larger still: 5.7 of 12.99 points a year, about 44%, because foreign markets did less of the work over that longer stretch.
The dollar figures are from the USD/INR closing rates on our currency page: ₹83.19 on 29 September 2023 and ₹74.32 on 30 September 2021, the start points of the three- and five-year windows.
The cleanest example: a dollar T-bill fund
A short-term US Treasury fund isolates the currency effect, because its own dollar return is small and steady.
Bandhan US Treasury Bond 0-1 year FoF returned 11.85% over the year in rupees. With the rupee held flat, that is 3.30%. Over three years it returned 9.46% a year in rupees and 4.34% a year without the currency.
In other words, nearly three-quarters of this bond fund's one-year rupee return was the dollar strengthening.
Equity funds, before and after
The largest returns came from narrow themes, and the currency lifted all of them:
| Fund | 1Y in rupees | 1Y with rupee flat | 3Y a year in rupees |
|---|---|---|---|
| DSP World Gold Mining Overseas Equity Omni FoF | 31.87% | 21.78% | 57.37% |
| Kotak US Specific Equity Passive FOF | 34.55% | 24.26% | 34.13% |
| Mirae Asset Global X AI & Technology ETF FoF | 42.38% | 31.49% | 40.68% |
Only 4 of the 46 equity funds returned less than the rupee's own 8.28% over the year. Two lost money outright: Invesco Global Consumer Trends (−5.94%) and Kotak International REIT (−0.25%). Over three years, none trailed the dollar's 4.91% a year.
What this does not tell you
Not every fund holds dollars. Funds investing in Europe, China, Japan or Brazil hold those currencies, not the dollar. USD/INR is the right yardstick for the US-focused funds and only an approximation for the rest.
The currency can turn. The rupee fell against the dollar over all three windows here. A rupee that strengthens takes return away from the same funds by the same arithmetic.
Past returns do not predict. A year when US technology, gold miners and a weak rupee all helped at once says nothing about the next one.
This is not a recommendation to buy or avoid any fund named here.
Where to go from here
The FoF overseas page ranks every fund in the category. The guides to currency risk in international funds and international mutual funds explain the mechanics. For gold's own year in rupees, see gold and silver prices this year.
For the overseas stocks that domestic funds hold directly, see foreign stocks in Indian equity funds.
Frequently asked questions
How much did international mutual funds return in the last year?
The median overseas equity fund-of-funds (Direct Growth) returned 24.56% in the year to 30 September 2026, across 46 funds. Over three years the median was 26.25% a year, and over five years 12.99% a year.
How much of that return came from the rupee falling?
The dollar rose from ₹88.70 to ₹96.05 over the year, 8.28%. Had the rupee held steady, the median fund's 24.56% would have been about 15.03%, so the currency supplied roughly 9.5 percentage points, close to two-fifths of the gain.
Do international funds always gain when the rupee falls?
They gain in rupee terms on the currency move, but the underlying assets can still fall. A falling rupee cushions a foreign loss; it does not prevent one. And when the rupee strengthens, the same effect works against the investor.
This is commentary on published data, not investment advice. WealthTicker is not a SEBI-registered adviser or distributor. Figures are WealthTicker’s own calculations from public data — AMFI’s fund NAVs and disclosures, NSE’s index and FII/DII files, and the fund houses’ monthly portfolios (how we calculate). They are as of the dates stated and can be revised by their source.
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