Now Reading: 28 international mutual funds halt existing SIPs
-
01
28 international mutual funds halt existing SIPs
Twenty-eight international mutual fund schemes have stopped accepting existing systematic investment plan (SIP) instalments, according to Value Research data reported on 7 August. PGIM India and Edelweiss Mutual Fund are the latest…
The Story in Brief
Twenty-eight international mutual fund schemes have stopped accepting existing systematic investment plan (SIP) instalments, according to Value Research data reported on 7 August. PGIM India and Edelweiss Mutual Fund are the latest to pause SIPs in nine schemes from 8 and 12 August respectively, citing regulatory limits on overseas investments. Edelweiss CEO Radhika Gupta said the fund house had 'no choice' under RBI restrictions.
The industry-wide ceiling of about $7 billion for overseas investments, unchanged since early 2022, along with individual fund house limits of $1 billion, has forced asset management companies to restrict inflows. Existing units remain invested and can be redeemed or switched. Only Baroda BNP Paribas Aqua FoF still accepts new SIP registrations among international funds.
The Indian Opinion
The narrative that fund houses are 'denying investors global diversification' overlooks the real constraint: RBI limits set years ago have not kept pace with market growth. Calling this a crisis is exaggerated; 40 schemes still run existing SIPs, and no existing investments are lost. The real test is whether the regulator will raise the $7 billion cap or allow separate limits for passive funds. Investors should watch for an RBI review before panicking.
Source: livemint.com
This story was synthesised by AI from the source linked above.
