MF investment: Why exploring global funds could help investors in 2026, expert explains what may click

If you’ve been investing for a while, you’ve probably felt that familiar pull — a booming sector grabs attention, everybody rushes in, and suddenly it feels like that is the only place to be. Indians have done this for years: gold when prices skyrocketed, real estate when it looked unstoppable, and equities when markets were roaring.

But SEBI-registered research analyst Rahul Jain says this instinct is exactly what trips investors up. In a recent YouTube video, he shared something most experts rarely admit: the biggest mistake of his investing journey.

“I didn’t maintain proper asset allocation,” he said plainly.

To prove his point, he pulled up 15 years of data on gold, real estate, equity and debt. Some years, gold topped the charts — in 2010 and 2011, it was unbeatable. But by 2013 to 2015, the very same asset was deep in the red. “Now imagine someone who invested everything in gold,” he said. “They’d be miserable. I don’t want to repeat that mistake again.”

That lesson is now shaping Jain’s own approach. In 2026, he plans to move 15–20% of his personal portfolio into global markets — and he believes more Indians should think about doing the same.

He’s researching opportunities in the US, Greater China, and Thailand, each offering exposure to sectors that India doesn’t dominate yet — from semiconductors to global consumer-tech brands. But he knows that most everyday investors don’t have the time to study global markets in depth. That’s why he breaks the process down into two simple options:

Option 1: Invest through international mutual funds — the easiest route for beginners.
Option 2: Buy global stocks directly through international broker platforms — ideal for seasoned investors.

For those who prefer the simplicity of mutual funds, Jain highlights four categories that already offer global diversification — without needing investors to pick stocks or track overseas markets daily.

1. The China theme

Funds like Axis Greater China Equity FoF give investors exposure to China, Hong Kong and Taiwan. After a painful downturn in 2021–22, markets there — especially the CSI 300 Index — are showing signs of revival. Jain’s only caution: don’t treat global funds like short-term trades. “Give them at least five years,” he said.

2. Emerging markets

The HSBC Global Emerging Markets Fund spreads investments across countries like China, Taiwan, India, Korea, South Africa and Brazil. It’s a diverse basket of fast-growing economies, which is why it has delivered nearly 18% annualised returns over the last three years.

3. US and Global tech funds

The Edelweiss US Technology FoF invests in some of the world’s most powerful technology companies — Nvidia, Meta, Tesla, TSMC and many more. Strong returns have followed the global AI and chip boom. Jain’s advice here is firm: avoid lump sums. Opt for SIPs and think long-term.

4. Global Brand Funds

If you want to own companies you already use and trust, funds like Sundaram Global Brand Fund invest in the biggest names on the planet — Amazon, Coca-Cola, Microsoft, Samsung. It’s a simple way to add global brand power to your portfolio.

Across all these themes, Jain’s message stays the same: You don’t need to find the perfect stock. You need to build the perfect balance.

What the numbers say

Recent performance shows how differently global themes behave over time. Over the past month, six months and even 1 year, commodity-based funds have been the biggest winners. The DSP World Gold Mining Overseas FoF has topped every short-term performance chart, riding the surge in global gold and metal prices.

But over longer horizons — three and five years — the leaders come from a very different world: technology.

• Over three years, Mirae Asset NYSE FANG+ ETF/FoF dominates.

• Over five years, Nasdaq 100–based funds from Motilal Oswal take the top spot.

The pattern is clear:
Short term = cyclical themes like commodities shine.
Long term = technology-driven indices create real wealth.

Every category comes with its own risks — gold miners swing wildly, semiconductor-heavy funds react to geopolitical tension, while broad US tech indices tend to compound steadily.

But when you put them together, these trends underline the most important investing lesson Jain is trying to teach:

Diversify across countries. Diversify across timeframes. And above all, stay invested long enough for balance to work in your favour.

1-Month Top Performers
Rank    Fund Name    Return (%)
1    DSP World Gold Mining Overseas Equity FoF    14.87%
2    DSP World Mining Overseas Equity FoF – Direct    11.82%
3    ICICI Prudential Strategic Metal & Energy Equity FoF    9.00%

Theme: Commodity & metal funds dominated short-term performance due to surging gold & metal prices.

6-Month Top Performers
Rank    Fund Name    Return (%)
1    DSP World Gold Mining Overseas Equity FoF    58.44%
2    Nippon India Taiwan Equity Fund – Direct    51.02%
3    DSP World Mining Overseas Equity FoF – Direct    45.36%

Theme: Gold miners + Taiwan semiconductors led the rally.

1-Year Top Performers
Rank    Fund Name    Return (%)
1    DSP World Gold Mining Overseas Equity FoF    128.87%
2    ICICI Pru Strategic Metal & Energy Equity FoF    55.23%
3    DSP World Mining Overseas Equity FoF – Direct    54.92%

Theme: Gold and energy commodities delivered blockbuster gains.

3-Year Top Performers
Rank    Fund Name    Return (%)
1    Mirae Asset NYSE FANG+ ETF FoF – Direct    64.25%
2    Mirae Asset NYSE FANG+ ETF    54.44%
3    DSP World Gold Mining Overseas Equity FoF    45.22%

Theme: Tech megacaps (FANG+) remain long-term wealth creators.

5-Year Top Performers
Rank    Fund Name    Return (%)
1    DSP World Gold Mining Overseas Equity FoF    21.02%
2    Motilal Oswal Nasdaq 100 FoF – Direct    20.41%
3    Motilal Oswal Nasdaq 100 ETF    19.88%

Theme: Nasdaq 100 continues to outperform consistently over long horizons.

Top International Funds

Source: Value Research

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