New Delhi, June 23 -- International mutual funds have quietly emerged as some of the best-performing schemes available to Indian investors over the past year. While domestic equity funds have benefited from a strong market environment, the biggest gains among overseas-focused schemes came from a handful of markets in Asia.

The standout performer was the Nippon India Taiwan Equity Fund, which delivered a one-year return of 202.9%. That means an investment of Rs.1 lakh would have grown to more than Rs.3 lakh over the period. Several other international funds also generated returns well above those seen in many traditional equity fund categories.

However, there is a catch. Many international mutual funds remain closed to fresh investments ...