You can acquire international exposure in three ways: First, by buying funds that invest 65 per cent of their portfolios in Indian stocks and the rest globally. In this case you will enjoy the tax breaks available to domestic equity funds.Templeton India Equity Income or Birla Sun Life International Equity Fund are the funds that follow this approach.

Second, you can invest in a feeder fund playing on a region or currency that you think will deliver good returns. We are recommending US equity funds at this juncture because of the high-quality stocks available in the US market as well as dollar strength. Franklin US Equities Fund and ICICI Prudential US Bluechip Equity Fund are good options. But remember that such funds are not eligible for the tax benefits of domestic equity funds.

Third, funds playing on a theme such as energy, agriculture or commodities, such as DSP BlackRock World Energy Fund orBlackRock Agriculture Fund or L&T Global Real Assets Fund are also an option. But invest in them only if you have special knowledge about the theme.