The ICICI Prudential NASDAQ 100 Index Fund has recorded a 31% three-year annual return, leading other major index funds with over Rs 1,500 crore in assets. This performance highlights the impact of US tech sector growth on international-focused mutual funds available to Indian investors.
The ICICI Prudential NASDAQ 100 Index Fund has emerged as a top performer among large-cap index funds, delivering a 31% Compound Annual Growth Rate (CAGR) over the past three years. This figure comfortably exceeds the benchmark index return of 25.3% for the same duration. The performance data, sourced from mutual fund analytics as of July 6, 2026, places the fund ahead of other major international and thematic index offerings available to Indian investors.
Comparing Peer Performance and Fund Size
Market analysis of index funds with assets under management (AUM) exceeding Rs 1,500 crore reveals a strong presence from Motilal Oswal Asset Management Company. The Motilal Oswal BSE Enhanced Value Index Fund and the Motilal Oswal S&P 500 Index Fund followed the ICICI Prudential fund, recording three-year annual returns of 25.7% and 25.1%, respectively. While the ICICI fund manages a significant corpus of Rs 3,629.6 crore, the Motilal Oswal S&P 500 Index Fund holds the largest assets in this group, standing at Rs 4,580.4 crore.
Factors Influencing International Returns
Beyond the three-year track record, the ICICI Pru NASDAQ 100 Index Fund also saw strong momentum over the last year, returning 43.5% compared to its benchmark's 29.6%. Such returns in international funds are often driven by the concentration of large US-based technology companies within the NASDAQ 100 index. Because these funds track foreign benchmarks, investors face distinct risks that differ from domestic funds, including currency fluctuations and changes in international taxation policies.
While long-term performance is a key indicator, short-term trends can show different winners based on specific market segments. For instance, the Motilal Oswal Nifty Microcap 250 Index Fund recently topped the one-month and three-month return charts with 6.2% and 25.9% respectively, highlighting how quickly sector-specific or market-cap-specific indices can change leadership.
Investors analyzing these results should note that international index funds remain subject to RBI-mandated limits on overseas investments by mutual funds. Any future restrictions on fresh investments into international funds, or changes in how these funds are taxed, could impact both the liquidity and the net returns for retail investors. Monitoring the expense ratio and the tracking error—the difference between the fund's returns and the benchmark index—will be essential for those looking to understand how efficiently these funds replicate the performance of US markets.