Invest in mutual fund based in US but has exposure in India

In united Stated there are four types of funds that can be used to invest in Indian equity market. These are: Mutual Funds (MFs), Exchange Traded Funds (ETFs), Close ended funds (CEFs) and Exchange Traded Notes (ETNs).

According to experts retail investors prefer the convenience and liquidity provided by ETFs and mutual funds. Comparatively ETNs are more complicated for its accounting and taxation side.

There are quite a few ETFs that invest in India such as WisdomTree India earnings fund, PowerShares India Portfolio, iPath MSCI India Index fund etc. Among the mutual funds - Franklin Templeton India Mutual Fund, Morgan Stanley Mutual Fund India, Alliance Capital Mutual Fund and Prudential ICICI Mutual Fund.