Tax-reasons – International funds are not tax efficient. So, the after-tax returns are lesser for international funds than for a comparative Indian fund. Any fund with >65% and Indian equities get a tax-free status beyond 1 year. International funds like Birla International equity fund or the ICICI US focused blue chip funds which directly invest in foreign markets do not get tax benefits and are charged like debt funds (now with LTCG applicable above the holding period of 36 months). While, Templeton India Equity Income and PPFAS Value fund get those benefits since their international allotment is <35%.