As per the Indian Income tax rules (current), MF schemes that invest at least 65% of their total corpus in Indian equities are only treated as "Equity Funds" for taxation purposes. For such funds the long term capital gains tax is NIL. i.e If you buy an equity fund and sell it after one year, You have no tax burden on the same irrespective of the amount of profit you make.
So,if the Global/ Asian/ Foreign Equity schemes of Indian fund houses invest less than 65% in Indian equities, they are considered like debt funds for taxation purposes.
When you want to invest in a global fund next time, check out its allocation to Indian equity and understand the taxes applicable before you invest.
An intelligent investor always takes applicable tax laws into consideration before he makes an investment decision.
To know more on~~~~~Applicable tax on Debt and Equity MFs
Global fund- select list-ABN AMRO China India Fund, Birla Sunlife International Equity, Tata Indo Global Infrastructure,Sundaram BNP Paribas Global Advantage,Principal global oppurtunities, Kotak global emerging market,Fidelity international oppurtunities,ICICI Indo Asia fund, DWS Gloabl thematic offshore,DSPML world gold.