Mumbai, July 8 -- "Diversification is the only free lunch in investing," famously said Nobel Prize-winning American economist Harry Markowitz.

One way investors can diversify their investments is by allocating a part of their portfolio outside the country. However, many popular mutual funds in India with international exposure are closed to new subscriptions due to regulatory limitations.

In February 2022, the markets regulator directed asset management companies to stop accepting fresh inflows into international mutual funds because the industry had exhausted the overseas investment limit of $7 billion set by the Reserve Bank of India (RBI).

The Securities and Exchange Board of India (Sebi) has allowed new investments in international...