PPFAS Mutual Fund will re-start accepting fresh inflows (new SIPs and lumpsum) in its flexicap scheme from March 15, the fund house announced on Thursday.
Rajiv Thakkar, the CIO and Director, PPFAS MF said that the decision to reopen the scheme was taken in view of low expectations of the international investment limit being raised soon.
"As of now we have no visibility on if / when and by how much the limit for overseas investments will be revised. If and when the limits are increased and if it is of a relatively small amount, the same will get exhausted soon. In such a scenario, having funds readily available will be advantageous rather than opening the scheme after the limit increase only to see the industry wide cap get breached again," he said.
As the restrictions on foreign investments still remain, the scheme will invest all the new inflows only in domestic equities.
"It is expected that over time, the weightage of foreign stocks in Parag Parikh Flexi Cap Fund will come down. As and when overseas investment limits are increased, we will rebalance the portfolio as per the then prevailing situation and valuations," he said.
On February 2, 2022, the fund house stopped accepting new SIPs and lumpsum investments in its flexicap fund after SEBI directed fund houses to stop taking fresh subscriptions in schemes investing in overseas stocks. The regulator's direction came after the MF industry crossed the mandated overseas investment limit of $7 billion.
The PPFAS Flexicap Fund used to invest up to 35% of its corpus in foreign stocks, primarily stocks of US technology companies before the SEBI directive.
