Everything you need to know about restrictions on new investments in international mutual funds and ETFs – #4 by Rohith_Extras – Coin – Direct MF – Trading Q&A by Zerodha

In the past five years, international mutual funds have become popular among retail investors. Until 2016-2017 we also did not have many options, but in the past 2-3 years we have seen many new global funds. But there are limitations in terms of foreign investments. Industry-wide, the Reserve Bank of India (RBI) has set the cap at $7 billion, and this includes a $1 billion limit on overseas ETFs. At the fund level, SEBI has set a limit of $1 billion for mutual funds and $300 million for offshore ETFs.

Due to the popularity of international mutual funds, the mutual fund industry has come close to hitting the frontier and all international mutual funds and ETFs have imposed various restrictions. Industry and SEBI are working with RBI to advance the boundaries, but nothing is final yet.

What does this mean for you as an investor?

We receive inquiries from investors whether they should cancel the SIP and get their investment back. This issue is purely about how much money the offshore mutual fund industry can invest, that’s all. This has absolutely no impact on existing SIPs and investments. Please continue to invest as per your asset allocation.

How does this affect my SIPs on the coin?

Most AMCs have stopped accepting new combinations and SIP registrations, but existing SIPs will not be affected. Since we simulate SIPs on Coin with pooled investments, we will automatically migrate all monthly Coin SIPs in international mutual fund schemes to AMC SIPs by February 1st.

Importance: Conditional, Weekly SIPs, and Paused SIPs will be deleted. If you still want to continue investing in international MF schemes, you will have to create a monthly AMC SIP by February 1, 2pm.
Read: How to Create an AMC SIP.

Here’s a breakdown by AMC, the chart, and what we’re doing on Coin. Things are still unfolding, so we’ll keep this post updated when there are new developments.

Motilal Oswal

Motilal has suspended significant and new acquisitions investments from SIP, Motilal Oswal S&P 500 Index Fund, Motilal Oswal MSCI EAFE Top 100 Select Index Fund and Motilal Oswal Nasdaq 100 Fund of Fund. This limitation does not apply to existing SIPs. We have migrated your coins to traditional AMC SIPs in these chests.

ETFs

AMC has stopped new innovations in these ETFs but redemptions will be allowed. ETFs will continue to trade on stock exchanges as usual. Since creations are not allowed, ETFs can trade away from their iNAVs. So please be careful and check iNAV on Motilal’s website before placing an order on Kite.

Parag Barik Financial Advisory Services (PPFAS)

PPFAS has suspended the new block and SIP investments in Parag Parikh Flexi Cap Fund, but existing SIPs will not be affected. We migrate all monthly SIPs for coins in the Flexible Ceiling Fund to traditional AMC SIP programs and your investment will not be affected. You will receive an email from us with more details.

DSP استثمار Investment Fund

DSP has stopped new flows in the next seven international schemes, but existing SIPs will not be affected. We will migrate all of your existing monthly SIPs to AMC SIPs.

US DSP Flexible Equity Fund
Global Agriculture Fund DSP
DSP العالمي Global Assignment Fund
DSP العالمي Universal Energy Fund
Global Gold Fund DSP
DSP Global Mining Fund
DSP قيمة Value Fund

Common Axle Fund

The hub has halted new flows in the next three international schemes, but existing SIPs will not be affected. We will migrate all of your existing monthly SIPs to AMC SIPs.

Axis Global Inquiity Alpha Fund for Fund
Axis Global Innovation Fund
Major Chinese Equity Fund Axis

Mirae Asset India

Mirae have halted new flows in these two international systems, but existing SIPs will not be affected. We will migrate all of your existing monthly SIPs to AMC SIPs.

Mirae Asset NYSE FANG + ETF
Mirae Asset S&P 500 Top 50 ETF

ETFs

AMC has halted new creations in these ETFs, but redemptions will be allowed. ETFs will continue to trade on stock exchanges as usual. Since creations are not allowed, ETFs can trade away from their iNAVs. So please be careful and check iNAV on the Mirae website before placing an order on Kite.

The Origins of Mirae Hang Seng Tech ETF
Mirae Asset NYSE FANG PLUS ETF
Mirae Asset S&P 500 Top 50 ETF

Edelweiss Mutual Fund

Edelweiss has halted new flows in the next four international schemes, but existing SIPs will not be affected. We will migrate all of your existing monthly SIPs to AMC SIPs.

Edelweiss Offshore Greater China Equity Fund
Edelweiss US Technology Equity Fund
Edelweiss Emerging Markets Offshore Equity Fund
Edelweiss Offshore Equity Fund
Edelweiss MSCI India Local & World Healthcare 45 Index Fund
Edelweiss Europe Dynamic Equity Outer Box
Edelweiss US Value Equity Off shore

Aditya Birla Mutual Fund

Aditya Birla has halted new flows in the next six international schemes, but existing SIPs will not be affected. We will migrate all of your existing monthly SIPs to AMC SIPs.

Aditya Birla Sun Life Equity Fund – Global Agri Plan
Aditya Birla Sun Life Global Emerging Opportunity Fund
Aditya Birla Sun Life Global Excellence Equity Fund
Aditya Birla Sun Life International Equity Fund – Plan A
Aditya Birla Sun Life International Equity Fund – Plan B
Aditya Birla Sun Life NASDAQ 100 FOF

ICICI Prudential Mutual Fund

The ICICI mutual fund has halted new inflows in the following three international schemes, but existing SIPs will not be affected. We will migrate all of your existing monthly SIPs to AMC SIPs.

ICICI Prudential US Bluechip Equity Fund
ICICI Prudential NASDAQ 100 Index Fund
ICICI Prudential Global Stable Equity Fund (FOF)

Sundaram Mutual Fund

The Sundaram Mutual Fund has suspended new inflows into Sundaram Global Brand Funds, but existing SIPs will not be affected. We will migrate all of your existing monthly SIPs to AMC SIPs.

Mutual Fund Fund

The Kotak mutual fund has halted new flows in the next three international schemes, but existing SIPs will not be affected. We will migrate all of your existing monthly SIPs to AMC SIPs.

Kotak Global Innovation Fund of the Fund
Kotak Emerging Markets Fund
International REIT FOF

India Nippon Mutual Fund

The Nippon India mutual fund has halted new inflows in the following five international schemes, but existing SIPs will not be affected. We will migrate all of your existing monthly SIPs to AMC SIPs.

Nippon India Equity Opportunity Fund
Japanese Nippon India Equity Fund
Nippon India Taiwan Stock Fund
Nippon India ETF Hangseng BeES
Nippon India Multi-Asset Fund

Franklin Templeton India Investment Fund

The Franklin Templeton mutual fund has halted new flows in the next three international schemes, but existing SIPs will not be affected. We will migrate all of your existing monthly SIPs to AMC SIPs.

Franklin India Asian Equity Fund
Franklin India Fund of American Opportunities
Franklin India Feeder – Templeton European Opportunity Fund

HSBC Mutual Fund

The HSBC mutual fund has halted new inflows in the next four international schemes, but existing SIPs will not be affected. We will migrate all of your existing monthly SIPs to AMC SIPs.

HSBC Asia Pacific Fund (excluding Japan) Dividend Yield Fund
HSBC Brazil Fund
HSBC Global Emerging Markets Fund
HSBC Global Equity Climate Change Fund

HDFC Investment Fund

The HDFC Mutual Fund has halted new flows in FOFs for the HDFC Developed World Indexes FOF, but existing SIPs will not be affected. We will migrate all of your existing monthly SIPs to AMC SIPs.

SBI Joint Fund

The SBI mutual fund has halted new inflows into the SBI International Access – US Equity FOF, but existing SIPs will not be affected. We will migrate all of your existing monthly SIPs to AMC SIPs.

PGIM India Mutual Fund

The PGIM mutual fund has halted new flows in the following three international schemes, but existing SIPs will not be affected. We will migrate all of your existing monthly SIPs to AMC SIPs.

Global Equity Opportunity Fund
Emerging Market Equity Fund
Global Select Real Estate Fund

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