Motilal Oswal S&P 500 Index Fund, Motilal Oswal Nasdaq 100 Fund of Fund and Motilal Oswal MSCI EAFE Top 100 Select Index Fund will be open for subscription with effect from December 1, 2022. Motilal Oswal Asset Management Company announced that three of its international funds will now accept fresh deposits.
However, there will be some restrictions in place as far as the investment amount is concerned. The fund house will be accepting no more than Rs. 2 lakh, per PAN, every calendar month for each of these schemes through lump sum or switch-in applications. Further, the option to invest through systematic investments like SIP and STP will not be allowed.
Earlier, SEBI had asked fund houses to stop accepting deposits in overseas funds as the upper limit was about to get breached. For mutual funds to invest in foreign securities and funds, the regulator has set an overall industry limit of $7 billion. The maximum amount of overseas investments that any mutual fund house may have is $1 billion USD. There’s a separate limit of $1 billion for investing in foreign exchange-traded funds (ETFs).
Following the SEBI’s directive, the fund houses had to pause subscriptions in the schemes which are investing in foreign securities. And, the investors were not able to invest abroad through mutual funds.
Later, from February 1, 2022, fund houses at the level of each were entitled to invest in foreign funds and securities up to the headroom permitted without going above the permitted limits for overseas investments.
After opening three of its international funds, Motilal Oswal Asset Management Company is allowing investors to diversify their portfolio with international funds. Motilal Oswal S&P 500 Index Fund is an open-ended scheme tracking S&P 500 Index while the Motilal Oswal Nasdaq 100 Fund of Fund is an open-ended fund of fund scheme investing in Motilal Oswal Nasdaq 100 ETF (MON100). Motilal Oswal MSCI EAFE Top 100 Select Index Fund is an open-ended scheme replicating the MSCI EAFE Top 100 Select Index. EAFE represents companies from Europe, Australasia and Far East.