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AMCs have started accepting inflows in their international funds. At least three fund houses – Mirae, PGIM and SBI have now opened their window to facilitate transaction in schemes investing overseas.
Mirae MF has started receiving investment in Mirae Asset Hang Seng Tech ETF and its FOF, Mirae Asset NYSE FANG+ ETF and its FOF and Mirae Asset S&P 500 Top 50 ETF and its FOF. Through foreign ETF route, the fund house has been receiving inflows in Mirae Asset Global X Artificial Intelligence and Technology ETF.
Similarly, PGIM MF has allowed investments in three international funds from July 3. These schemes are PGIM India Global Equity Opportunities Fund, PGIM India Emerging Markets Equity Fund and PGIM India Global Select Real Estate Securities Fund of Fund.
SBI Mutual Fund has recently announced that it will accept fresh investment in SBI International Access – US Equity FOF(SBIUS).
Notably, subscription in three schemes of Aditya Birla Sun Life Mutual Fund - Aditya Birla Sun Life Global Excellence Equity Fund of Fund, Aditya Birla Sun Life Global Emerging Opportunities Fund and Aditya Birla Sun Life International Equity Fund – Plan – A has been open for the past one year.
In June 2022, SEBI allowed fund houses to accept money in schemes investing overseas up to the headroom available without breaching the overseas investment limit of $7 billion as of February 1, 2022, at the mutual fund level. Basically, if redemption happens from their schemes and there is headroom available when compared to AUM of Feb 1, 2022, they can allow fresh subscription to the extent of redemption.
This rule is applicable for Indian mutual funds investing in international stocks directly or active and passive international funds.
However, FoFs based on global ETFs have remained open for investment as they have a separate investment limit of $1 billion. Currently, industry sources have confirmed that there is 30-40% headroom available in this space.
