US equities have outperformed the Indian market and delivered better returns last year. However, Indian stock market Sensex and Nifty50 have posted negative four percent returns past year. This is the main reason many people are investing globally.

Anyone who wants to expand his/her portfolio globally from India and not able to find the way due to SEBI and RBI restriction this post is for you. In this post I will share details of domestic fund with global exposure.

Why Global Exposure Matters More Than Ever in 2026

Just look around – the world economy is not stagnant. India is doing well, especially with its flourishing digital economy and young population; but putting all your investments in India might prove risky. Consider this: when there’s a downturn in the Indian market because of elections, inflation, or external factors, the exposure to global markets will come in handy.

But why is diversification important? Just as having friends in different places can be helpful during bad weather in one place, global exposure allows you to diversify the risks among other economies, currencies, and sectors. US technology companies can be thriving when Indian Information Technology is facing tough times, and vice versa.

Furthermore, with the fluctuating rupee, having global exposure helps you protect yourself from currency risks. Many domestic funds invest in investments denominated in dollars, and therefore, when the rupee depreciates, your returns see an increase. That is brilliant, isn’t it? By 2026, the world is expected to change politically, technologically, and environmentally, and thus global exposure is a must.

Why Pure International Funds Got Tricky

You might wonder, “Why not just go for pure international funds?” Well, RBI and SEBI have set overall limits on overseas investments by Indian mutual funds – around $7 billion industry-wide, with caps per AMC. When these limits hit, new subscriptions often get paused or restricted. Many investors found themselves locked out during hot market phases.

That’s where domestic schemes shine. They’re not bound by the same strict overseas caps because their primary focus stays on Indian assets. They allocate a portion – say 10-30% – to foreign stocks or global funds. This setup gives you global exposure legally and seamlessly through regular SIPs in rupees. No LRS (Liberalised Remittance Scheme) hassles, no extra tax complications at entry. Sounds like a win, right?

Top Domestic Indian Schemes Offering Global Exposure

Let’s talk specifics. Here are some standout domestic schemes that smartly blend Indian roots with international flair. Remember, past performance isn’t a guarantee, but these have caught investors’ eyes for their balanced approach.

Parag Parikh Flexi Cap Fund: The Balanced All-Rounder

This one’s a favorite among investors who want global exposure without going overboard. With around 10-12% in international stocks like Microsoft, Alphabet, and Amazon, it offers a solid mix. The fund managers pick high-quality businesses globally while keeping the bulk in promising Indian companies.

Why do people love it? Low churn, experienced team, and consistent returns even during volatile times. If you’re starting your journey toward global exposure, this could be your gateway. Minimum SIPs are affordable, making it accessible for salaried folks.

DSP Multi Asset Allocation Fund: Diversification on Steroids

Want more than just equities? DSP’s multi-asset fund throws in equities, debt, gold, and yes, significant global exposure – often up to 20%. It invests in overseas equities and might even tap into commodities or bonds abroad.

Imagine your money working across asset classes and borders! During uncertain times, this fund’s flexibility helps it navigate rough patches better than pure equity plays. Investors eyeing retirement or medium-term goals often pick this for its smoother ride.

SBI Focused Fund: Quality Picks with a Global Twist

SBI Focused isn’t a multi-cap in the traditional sense; it concentrates on high-conviction ideas, including international ones (around 11-12%). You get exposure to strong global brands alongside Indian winners.

It’s not for the faint-hearted who chase every trend, but if you trust active management, this fund delivers that precious global exposure through carefully chosen overseas bets.

Edelweiss Technology Fund and Other Sectoral Plays

Tech enthusiasts, listen up! Funds like Edelweiss Technology have pushed overseas allocation higher – sometimes over 25% – into global tech giants. Similarly, healthcare-focused domestic funds tap into international pharma and biotech.

These aren’t for everyone, but if your portfolio lacks sector diversity, they add that global exposure punch. Just don’t go all-in; sectoral funds can swing wildly.

ICICI Prudential Commodities Fund and Hybrid Options

Commodities aren’t just local anymore. Some domestic hybrids allocate to global mining, energy, or metal companies, giving indirect global exposure. DSP Value Fund is another one often mentioned for its 10%+ international holdings, focusing on undervalued opportunities worldwide.

How These Schemes Actually Deliver Global Exposure

You might ask, “How does a ‘domestic’ fund invest abroad?” Great question! Most use the Foreign Portfolio Investor (FPI) route or invest in overseas ETFs and mutual funds as feeders. For example, a domestic FoF might park money in a US index tracker without you dealing with foreign brokerages.

This structure keeps things simple. Your KYC stays Indian, transactions happen in rupees, and taxation follows domestic mutual fund rules (equity-oriented if over 65% in equity). Long-term capital gains over one year get taxed favorably. Easy peasy!

Benefits That’ll Make You Rethink Your Portfolio

• Risk Reduction: Markets don’t crash in sync. Global exposure cushions blows.
• Growth Potential: Access to innovative sectors like AI, semiconductors, and EVs that might be underrepresented in India.
• Currency Hedge: Rupee depreciation can sweeten returns.
• Convenience: Invest via apps like Groww, Zerodha Coin, or direct AMC platforms. No forex worries.
• Inflation Beater: Global assets, especially quality equities, have historically outpaced inflation over decades.

Who wouldn’t want that?

Potential Risks and Smart Ways to Handle Them

No investment is foolproof. Currency volatility can hurt if the rupee strengthens sharply. Geopolitical tensions – think US-China trade spats – affect global holdings. Management fees might be slightly higher for funds with overseas research needs.

Plus, overexposure to one region (say heavy US tilt) could backfire if that economy slows. Solution? Start small with SIPs, review annually, and don’t exceed 20-30% of your total portfolio in these for global exposure. Consult a financial advisor if your goals are complex.

Step-by-Step: How to Start Investing Today

1. Assess Your Goals: Short-term? Long-term? Risk appetite?
2. Open an Account: Demat or mutual fund folio if you don’t have one.
3. Research Funds: Check latest factsheets for current global exposure percentages.
4. Start SIP: Even ₹500-1000 monthly builds habit.
5. Monitor: Use apps for alerts, but avoid daily tinkering.
6. Rebalance: Once a year or when allocations drift too much.

Simple, right? No need for fancy tools.

Real Investor Stories: Learning from Others

Take Ramesh, a software engineer from Bangalore. He missed the international fund boom but parked money in Parag Parikh Flexi Cap. “I sleep better knowing part of my savings rides with global tech leaders,” he says. His portfolio stayed steadier during the 2025 market dips.

Or Priya, a teacher saving for her daughter’s abroad studies. Hybrid funds with global exposure helped her corpus grow while keeping volatility in check. These aren’t made-up tales – countless middle-class Indians are quietly benefiting.

Comparing Domestic Global Exposure vs Pure International Options

Pure international funds offer higher direct global exposure, but face subscription halts. Domestic ones provide moderate but reliable access. Returns? Domestic blends often lag in strong bull markets abroad but shine in balanced conditions.

Expense ratios are competitive. Liquidity? Excellent in domestic schemes. For most retail investors, the domestic route wins on convenience.

Tax Implications You Should Know

Equity-oriented domestic funds (65%+ equity) enjoy indexation benefits? Wait, rules evolve, but generally, LTCG over ₹1.25 lakh taxed at 12.5% without indexation for equity. Debt portions follow slab rates if holding under 3 years. Always check latest ITR guidelines or consult a CA. Better safe than sorry!

Future Outlook: What’s Next for Global Exposure in India?

By late 2026 and beyond, more AMCs might increase overseas sleeves as regulations ease or demand grows. Themes like climate tech, biotech, and space economy will drive global exposure opportunities. Indian investors are getting savvier – expect innovation in these hybrid products.

Conclusion

Missed out on international funds? Don’t sweat it. These domestic Indian schemes have opened doors to global exposure in a practical, regulated, and exciting way. By blending the stability of Indian markets with the dynamism of the world economy, they offer a balanced path to wealth creation.

Whether it’s Parag Parikh’s thoughtful picks, DSP’s multi-asset magic, or sectoral tech plays, opportunities abound. The key? Start today, stay disciplined with SIPs, and keep learning. Your future self – dreaming of financial freedom with a globally diversified portfolio – will thank you.

Remember, investing is a marathon, not a sprint. Embrace global exposure wisely, and watch your money work harder across borders. Happy investing, folks! What’s stopping you now?

Rs 2 Crores is a huge amount, but with the right SIP (Systematic Investment Plan) and patience, it can easily be reached in 10 years with the magic of compounding.

How much one needs to save per month to reach their target becomes the question. However, the way to get that answer will differ according to whether the individual prefers active or passive fund and depends on the expected returns.

In the illustration below, let me show how one can be a millionaire at the end of 10 years.

What is SIP?

SIP (Systematic Investment Plan) is a type of investment that allows an investor to invest a fixed amount in a mutual fund on a regular basis, typically monthly. It’s similar to saving money with a recurring deposit, but instead of receiving a flat investment from a bank, you’re investing your money in the stock market, where historically your returns will be much greater than if you were just using a savings account.

The key to SIPs is the concept of rupee cost averaging as well as the power of compounding. When the market is down your regular SIP amount will purchase more units of the mutual fund. Conversely, when the market is up your total units will appreciate in value. By having a ten year time horizon, you will be averaging out the market volatility and building wealth on a regular basis.

Your rate of return is determined by the mutual fund you choose or what conversation you are having regarding an active or passive fund. This is where the current discussion between active and passive funds becomes extremely important.

Active Vs. Passive Funds

When you choose a fund for SIPs (Systematic Investment Plans), matching funds is greatly reduced to either an active or passive fund option.

Active funds are managed by professional fund managers who buy and sell equities upon their discretion in an effort to outperform a designated index or benchmark. On average, active funds charge 1%-2.5% in management fees. Thus, the goal of investing in an active fund is to receive a total return that is higher than the average of the benchmark over time.

Passive funds simply track a broad market index (such as the Nifty 50 or the Sensex); therefore, they will not outperform their respective indexes. Additionally, passive funds have lower management fees (0.1%-0.5%) than active funds. Many financial experts suggest that, after factoring in fees, you will be better off with a passively managed fund over time than with an actively managed fund.

Why is this important to your goal of accumulating 2 crores? The difference between a 10% and 14% return on investment — the difference between below-average performing active funds and superior performing active funds — means that you will have to save or invest tens of thousands of rupees more each month to reach your goal. Simply put, choosing between an active versus a passive fund will directly affect your finances.

The Core Calculation: What Return Rate Are You Expecting?

Here’s where the real math comes in. The formula used for SIP calculations is based on the future value of a recurring investment:

FV = P × [(1 + r)^n – 1] / r × (1 + r)

Where:

• FV = Future Value (Rs 2,00,00,000 in our case)
• P = Monthly SIP amount
• r = Monthly rate of return (annual rate ÷ 12)
• n = Number of months (120 months for 10 years)

Let’s look at what this spits out at different return assumptions.

Monthly SIP Required at Different Return Rates

At 8% Annual Returns (Conservative)

If you’re investing in debt-oriented hybrid funds, conservative balanced funds, or underperforming active funds, you might realistically expect around 8% per annum. At this rate, you’d need approximately:

Monthly SIP ≈ Rs 1,36,300

That’s a chunky amount, honestly! This is what happens when your returns are modest — compounding doesn’t have enough firepower to do the heavy lifting. Passive funds invested purely in debt wouldn’t typically hit this corpus target either, making fund selection crucial.

At 10% Annual Returns (Moderate)

At 10% annual returns — which is roughly what a conservative equity-heavy passive index fund might deliver over a decade — the required monthly SIP drops to:

Monthly SIP ≈ Rs 1,04,700

Still over a lakh per month, but noticeably lower. Many large-cap passive funds tracking the Nifty 50 have historically delivered returns in this ballpark, though of course past performance doesn’t guarantee future results.

At 12% Annual Returns (Active vs Passive Funds Battleground)

Here’s where the active vs passive funds debate really heats up! A well-performing active fund or a mid-cap index fund might realistically target 12% per annum. At this level:

Monthly SIP ≈ Rs 80,000

Now we’re talking! That’s a number many upper-middle-class Indian families can actually consider. A flexi-cap active fund that consistently beats the index, or even a Nifty Next 50 passive fund, could realistically get you into this territory.

At 15% Annual Returns (Optimistic but Possible)

Good small-cap active funds and some mid-cap active managers have historically delivered 15%+ over 10-year periods, though this isn’t guaranteed. If you’re lucky (and skilled at fund selection), you might achieve:

Monthly SIP ≈ Rs 55,400

That’s a massive difference from the 8% scenario! Just under Rs 56,000 per month versus Rs 1.36 lakh per month — for the same Rs 2 crore end goal. This is why the active vs passive funds conversation matters so deeply when you’re playing the long game.

Stepping Back: What Kind of Investor Are You?

So, which number applies to you? Well, that depends entirely on where you’re putting your SIP money. And here’s where you’ve got to make some honest decisions about the active vs passive funds debate for your own situation.

If you’re a hands-off investor who’d rather not agonise over quarterly fund manager updates and NAV movements — passive index funds might be your best friends. They won’t make you rich overnight, but they’ll give you steady, reliable growth with minimal effort and low costs. Think of them as the “set it and forget it” school of investing.

If you’re willing to do your homework, track fund performance, evaluate fund managers, and make occasional switches when a fund starts underperforming — certain active funds could potentially deliver the extra 2-4% per annum that makes a significant difference to your final corpus.

The active vs passive funds question, ultimately, isn’t about which is universally “better.” It’s about which fits your investing temperament, time availability, and risk appetite.

The Impact of Stepping Up Your SIP Every Year

Here’s a little secret that most beginner investors don’t know about: you don’t have to start with a big SIP amount. Many mutual fund platforms allow something called a Step-Up SIP (also known as Top-Up SIP), where you increase your monthly contribution by a fixed percentage each year.

If you start with Rs 50,000 per month today and increase it by 10% every year, you’ll be surprised at how quickly you approach the 2-crore mark without ever having to start with a massive outlay.

For example:

• Start: Rs 50,000/month
• After Year 1: Rs 55,000/month
• After Year 2: Rs 60,500/month
• …and so on

With 12-15% returns and annual step-ups, a Rs 50,000 starting SIP could comfortably cross the Rs 2 crore mark in 10 years. This flexibility makes the goal much more accessible — especially for younger professionals whose incomes tend to grow over time.

Active Vs Passive Funds – History

The SPIVA (S&P Indices vs Active) India Scorecards have revealed that, over rolling 10-year periods, a large majority of active large-cap funds have posted returns that fall below benchmark indices, Nifty 50. Approximately 60-80% of large-cap active funds have underperformed by the end of one’s investment horizon (10 years).

What does this tell you? If you are considering investing in a large-cap active fund with an expected nominal return of 14-15%; the actual return could be closer to 10-11%. Therefore, you would need to invest more through monthly SIP.

The active vs passive fund environment, however, is very different for mid-cap and small-cap stocks. Historically, there are many active mid-cap and small-cap fund managers in India that have outperformed their benchmarks more consistently; thereby providing greater justification for the use of active management in this area.

As a result, many astute investors in India employ a strategy involving the use of passive large-cap vehicles and active mid-cap/small-cap vehicles. This hybrid investing model takes advantage of the lower overall costs associated with index-based funds where active management has generally struggled while allowing for the higher potential alpha generated by qualified managers in less efficient markets.

Step by Step Planning

Let’s bring it all together with a practical, step-by-step approach:

1. Define your target clearly. You want Rs 2 crore in 10 years. Great — that’s a well-defined goal.
2. Assess your current savings capacity. How much can you genuinely set aside each month without straining your budget? Be realistic.
3. Choose your fund category. Refer to the active vs passive funds framework above. If you’re starting fresh and don’t want complexity, a 60-70% allocation to passive index funds (Nifty 50 + Nifty Next 50) and 30-40% in a reputed mid/small-cap active fund is a solid starting point.
4. Run your numbers. Use the table above as a reference. At 12% blended returns, you need around Rs 80,000/month. Can you manage that? If not, consider stepping up.
5. Start a Step-Up SIP. If Rs 80,000 is too high today, start at Rs 50,000 and increase by 10-15% annually. You’ll likely still hit your goal.
6. Stay the course. The biggest mistake investors make is stopping their SIPs during market downturns. Don’t. SIPs are designed to work through volatility, not around it.
7. Review annually, not monthly. Check your fund’s performance against its benchmark once a year. If a fund has consistently underperformed for 3+ years, consider switching. But don’t panic-sell over short-term dips.

Role of Inflation

What most people tend to ignore is inflation. 2 Crores will not have the same purchasing power today as they do today when looking at the purchase power in 2035. In India, with an average inflation rate around 5-6% per annum, the actual value of your corpus will deteriorate significantly.

Should these considerations lead you to set higher targets? Perhaps, If you want to achieve the equivalent of 2 Crores today in 10 years, your nominal target should be set at approximately 3.2 – 3.5 Crores to offset inflation.

This upward adjustment of all the numbers has a cascading effect on all your other assumptions. For example, when targeting 3.5 Crores at 12% return, you now need around 1.4 Lakhs/Month as opposed to 80,000.

The debate surrounding active versus passive funds will include this. An active fund that can generate returns of 15%+ in a high inflation environment would provide a significantly better return than a passive one that provides returns of 10%, because it preserves your real purchasing power much better.

Conclusion

Saving enough money to create a Rs 2 crore corpus over the course of 10 years is not going to be difficult to achieve if you think about it mathematically. However, depending on how you understand the difference between active versus passive funds as well as how you go about using that knowledge will actually result in significant differences in the solutions you will find to this problem.

For example, if your return is 8%, you will have to save more than Rs 1.36 lacs per month. If you are savvy regarding your selection of funds and utilize the best passive index-type funds for large caps combined with some excellent active management for mid/small type companies, it is possible that you will obtain your target Rs 2 crore corpus with returns between 12%-15%, which means that you will only need to save between Rs 55,000 to Rs 80,000 per month.

The bottom line is to start now, make savvy fund selections, consider using Step-Up SIPs if you cannot save the desire monthly amount immediately, and do not stop saving if the market experiences short-term downturns. The active vs passive fund debate may be critical, but the single most critical decision you will ever make is to simply start saving to create your Rs 2 crore corpus. Your future self will be extremely grateful to you 10 years from now for having made the decision to start today.