Kotak, Edelweiss stop fresh investments in international mutual funds

Kotak MF and Edelweiss MF place restrictions on investments as they near their international investment limits

Kotak Mahindra Mutual Fund (MF) and Edelweiss MF have stopped accepting fresh investments in their international schemes as they are about to reach their international investment limits.

Edelweiss MF has stopped taking lump sum investments in seven of its international schemes including ASEAN Equity Off-shore Fund, Greater China Equity Off-shore Fund and US Technology Equity Fund of Fund. Investments, though, can still be made through systematic investment plans (SIPs). Kotak MF has completely suspended investments (both lump sum and SIP) in Nasdaq Fund of Fund.

The suspensions come a day after Reserve Bank of India Governor Shaktikanta Das said there was no proposal to increase the overseas investment limits for domestic mutual funds as of now.

On January 31, the Securities and Exchange Board of India had directed fund houses to stop accepting fresh inflows into overseas schemes after the $7-billion industry-wide investment threshold got breached. A few months later they were allowed to take fresh investments and deploy them overseas, provided the international investments do not breach February 1, 2022 level.

Since then, fund houses have opened international schemes for subscription as and when they have enough head room to make international investments.

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