If you’ve been planning to invest in an international mutual fund, your options have almost disappeared.
As more fund houses stop accepting fresh investments in overseas schemes due to regulatory limits, only one international mutual fund in India is still open for both fresh SIPs and lump sum investments.
Here’s a look at this fund, why it is still accepting investments, and what investors should know. But first, let’s see which international mutual funds stopped accepting fresh investments last week.
In the past week alone, 11 international mutual fund schemes stopped accepting new SIP registrations. PGIM India Mutual Fund suspended fresh subscriptions in three international fund of funds effective July 9, while Franklin Templeton Mutual Fund halted fresh SIP registrations in two overseas schemes on the same day.
A day later, Edelweiss Mutual Fund announced the suspension of fresh SIPs and systematic transfer plans (STPs) in six international funds from the close of business on July 10.
Among 65 overseas mutual funds, Baroda BNP Paribas Aqua FoF is the only scheme that remains open for both fresh SIP investments and lump sum purchases, according to Value Research.
The fund operates within the same industry-wide overseas investment limit that prompted 11 other international funds to stop accepting fresh inflows.
As a result, it will continue to accept new investments only until its fund house has sufficient headroom under the prescribed limit. Once that capacity is exhausted, the AMC may suspend fresh subscriptions at short notice, making its current availability subject to change without prior notice.
About Baroda BNP Paribas Aqua FoF
Since its launch on May 7, 2021, the Baroda BNP Paribas Aqua FoF-Direct Plan mutual fund has generated a return of 10.33%. The current fund managers are Stuti Singhee and Swapna Shelar. With a total AUM (Assets Under Management) of Rs 50 Cr, the fund has an expense ratio of 0.51%.
Performance
| Fund name | 1-Year Returns In % | 3-Year Returns In % | 5-Year Return In % |
| Baroda BNP Paribas Aqua FoF Dir | 19.01 | 15.07 | 9.91 |
| Benchmark: MSCI ACWI Index | 23.13 | 19.31 | 11.22 |
Source: Value Research and msci.com as of 12th July 2026
Asset allocation and holdings: With 96.37% of its portfolio invested in the BNP Paribas Funds Aqua U18 Capitalisation fund, Baroda BNP Paribas Aqua FoF has a highly concentrated fund-of-fund strategy. The fund’s asset allocation consists of 96.37% equities, 4.45% debt, and -0.82% cash and cash equivalents.
Performance comparison with other top-performing funds
Top performing international funds in 1-year
| Funds | 1-Year Returns In % |
| Nippon India Taiwan Equity Dir | 152.36 |
| Motilal Oswal Nasdaq 100 FOF – Direct Plan | 72.94 |
| DSP World Mining Overseas Equity Omni FoF Dir | 69.05 |
| Edelweiss Emerging Markets Opportunities Equity Offshore Dir | 63.28 |
| Mirae Asset Global Electric & Autonomous Vehicles Eqt Passive FoF Dir | 62.67 |
Best performing international funds in 3-years
| Funds | 3-Year Returns In % |
| Nippon India Taiwan Equity Dir | 55.72 |
| Mirae Asset NYSE FANG+ ETF FoF Dir | 45.46 |
| DSP World Gold Mining Overseas Equity Omni FoF Dir | 41.14 |
| Motilal Oswal Nasdaq 100 FOF Dir | 38.82 |
| Mirae Asset NYSE FANG+ ETF | 35.53 |
Top performing international mutual funds in 5-years
| Funds | 5-Year Returns In % |
| Mirae Asset NYSE FANG+ ETF FoF Dir | 28.97 |
| Mirae Asset NYSE FANG+ ETF | 24.55 |
| Motilal Oswal Nasdaq 100 FOF Dir | 24.46 |
| DSP World Gold Mining Overseas Equity Omni FoF Dir | 22.71 |
| Kotak US Specific Equity Passive FoF Dir | 20.49 |
Source: Value Research as of 12th July
Fresh SIPs suspended in international funds: What’s the reason?
International mutual funds were once a popular choice among Indian investors looking to diversify beyond domestic markets. However, after the RBI’s overseas investment limits were exhausted in early 2022, most fund houses stopped accepting fresh investments or suspended SIP registrations in their international schemes.
Under the current framework of the RBI, the entire mutual fund industry can invest up to $7 billion in overseas securities, along with a separate $1 billion limit for overseas exchange-traded funds (ETFs). Additionally, each asset management company (AMC) has an individual overseas investment cap of $1 billion.
The purpose of these caps is to protect India’s foreign exchange reserves and maintain macroeconomic stability, controlling how much rupee capital is converted into foreign currency and deployed abroad.
The industry-wide limit was fully utilised in early 2022. Since then, fund houses have generally been permitted to make overseas investments only to the extent of the unutilised overseas headroom that remained available with them as of February 1, 2022.
As AMCs gradually exhaust this residual capacity, they suspend fresh inflows—including SIPs, lump-sum investments, and, in some cases, STPs—into their international schemes to ensure they remain within the regulatory limits set by the Reserve Bank of India and SEBI.
“Beyond the industry-wide $7 billion cap, each AMC also has an individual ceiling of $1 billion on its total overseas investments. This means that even if there is theoretical headroom at the industry level, a specific fund house may still have to restrict inflows if it has individually hit its own limit. Each fund house has been using up its own frozen allocation, and several are now running out simultaneously,” said Tanvi Kanchan, Associate Director, Anand Rathi Shares & Stock Brokers.
What should investors do?
International mutual funds are restricting fresh investments because they have hit the regulatory caps imposed by the RBI.
Regulatory policy allows all Indian mutual funds combined to hold approximately $7 billion in foreign assets. Once an Asset Management Company (AMC) hits its allocated limit of the overall cap, it must stop accepting fresh money.
“With Indian investors now increasingly looking to scale up global exposure, they could look at direct investing via LRS (Liberalised Remittance Scheme), which places full control in the hands of the investor,” said Vijay Kuppa, CEO, InCred Money.
Under the RBI’s Liberalised Remittance Scheme (LRS), any resident Indian individual can remit up to $250,000 per financial year. This full allowance can be used to invest directly in international stocks, foreign mutual funds, ETFs, or real estate. However, even if an individual has not exhausted their LRS limit, they may still be unable to invest in an international mutual fund if the fund house has already reached its RBI-prescribed overseas investment limit.
Disclaimer: This article is for informational purposes only and should not be construed as investment advice. Mutual fund investments are subject to market risks. Please read all scheme-related documents carefully before investing.
Every financial journey has a turning point. What’s yours?
Financial Express is launching a new series highlighting real experiences with money, investments, and the taxman. Did a sudden tax rule catch you off guard? Did a piece of financial advice change your life? Your story could provide invaluable, practical lessons for thousands of fellow taxpayers. Share your experience with us. We respect your privacy: no stories will be featured without a direct conversation and your full consent. Thank you.