At least two mutual fund houses have resumed subscriptions in their international funds. Edelweiss Asset Management and Mirae Asset mutual fund are accepting fresh investments from Indian investors.
Mirae Asset mutual fund has resumed subscription in overseas schemes allowing Indian investors to take exposure to global equities. The scheme where fresh investments will be allowed includes – Mirae Asset NYSE FANG+ ETF Fund of Fund, Mirae Asset S&P 500 Top 50 ETF Fund of Fund, Mirae Asset Hang Seng TECH ETF Fund of Fund, Mirae Asset NYSE FANG+ ETF, Mirae Asset S&P 500 Top 50 ETF and Mirae Asset Hang Seng TECH ETF.
Siddharth Srivastava, Head – ETF Product & Fund Manager, Mirae Asset Investment Managers says, “We have opened subscriptions in a lump sum manner for our three international ETFs and three Fund of Fund based on these ETFs from March 27 onwards. The existing SIPs and STPs will reopen from March 29 onwards, however, fresh SIP and STPs will not be allowed.”
There is an industry limit for international funds and a separate limit for each fund house garnering money for overseas funds. According to SEBI regulations, the total amount of foreign investment in the mutual fund industry is capped at US$7 billion. Any mutual fund house may hold a total of $1 billion USD in foreign interests.
Additionally, SEBI had given the AMCs permission to restart subscriptions and make investments in foreign funds and securities up to the headroom available as of June 17, 2022, without exceeding the foreign investment cap.
“Since we have limited room available to take fresh inflows, these funds are likely to get closed again in future for subscription, in order to comply with the current regulatory limit and applicable guidelines for the overseas funds,” adds Srivastava.
In the case of ETFs, investors can transact on exchange in any quantity or in multiple basket sizes with the AMC directly. In the case of FOFs, investors can use multiple avenues like a lump sum or switch-ins to take exposure in the underlying ETFs.
Here are the dates from which fresh investments in Mirae Asset funds are allowed:
Mirae Asset NYSE FANG+ ETF Fund of Fund – Lumpsum and switch in transactions allowed with no upper limit on the amount with effect from March 27, 2023.
Mirae Asset S&P 500 Top 50 ETF Fund of Fund and Mirae Asset Hang Seng TECH ETF Fund of Fund – Existing registered Systematic Investment Plans (SIPs)/Systematic Transfer Plans (STPs) shall be allowed with effect from March 29, 2023. However, fresh SIP / STP registrations will not be allowed.
Mirae Asset NYSE FANG+ ETF, Mirae Asset S&P 500 Top 50 ETF and Mirae Asset Hang Seng TECH ETF – Direct applications allowed with effect from March 27, 2023.
Edelweiss Asset Management Limited has also decided to revoke the temporary suspension of the transactions in specific schemes with effect from March 27, 2023, till 3:00 pm on March 31, 2023 subject to the overseas investment limits.
Edelweiss AMC will be taking lumpsum subscriptions in the following schemes:
Edelweiss ASEAN Equity Off-shore Fund
Edelweiss Greater China Equity Off-shore Fund in Transactions
Edelweiss US Technology Equity Fund of Fund
Edelweiss Emerging Markets Opportunities Equity Offshore Fund
Edelweiss Europe Dynamic Equity Offshore Fund
Edelweiss US Value Equity Off-shore Fund
Edelweiss MSCI India Domestic & World Healthcare 45 Index Fund