Motilal Oswal MF to reopen 3 global funds for lumpsum investment

Motilal Oswal will accept up to AMC from December 1 2 lakh, per PAN, per calendar month in each of these plans either in lump sum or through a switch-in application.

Motilal Oswal AMC to continue with restrictions on arrangement Investment Options like SIP and STP etc.

Motilal Oswal S&P 500 Index Fund invests in components of the US-based S&P 500 Index, while Motilal Oswal Nasdaq 100 Fund of Fund invests in stocks of the Nasdaq 100 Index.

Motilal Oswal MSCI EAFE Top 100 Select Index Fund invests in stocks of Europe, Australia and Far East (EAFE).

Earlier in February this year, the Securities and Exchange Board of India (SEBI) had advised mutual funds investing in foreign securities to stop further investments in foreign stocks to avoid breaching industry-wide foreign limits.

The regulator has specified an overall industry level limit of $7 billion for mutual funds to invest in foreign securities and funds and a separate limit of $1 billion for investment in foreign ETFs.

Further, the Association of Mutual Funds in India (AMFI) notified in June that mutual fund schemes can resume subscription and invest in foreign funds/securities up to the available headroom without breaching foreign investment limits till February 1, 2022. Can

In the recent past, the fund house had opened up some of its overseas schemes to large investors and market makers due to availability of headroom for investment.

Last month, the fund house opened two of its overseas exchange-traded funds (ETFs) — Motilal Oswal Nasdaq 100 ETF and Motilal Oswal Nasdaq Q50 ETF — with the fund directly to large investors.

Large investors deal in ‘creation unit size’ apart from authorized participants and market makers who create or redeem directly with the fund or AMC.