Fund of Funds (FoFs) that invest in global ETFs can still receive fresh inflows from investors.
While the industry has breached its overall foreign investment limit of $7 billion, FoFs that invest in global ETFs have a separate limit of $1 billion, which is yet to be breached at the industry or fund level. Currently, there are handful of schemes in this category.
Remember that FoFs that invest in foreign funds or stocks cannot deploy fresh inflows in foreign funds or stocks. However, they can deploy their incremental corpus in cash or money market instruments.
