Motilal Oswal Mutual Fund stops SIP in three international schemes

The asset management company has taken the decision due to limits on industry-wise foreign investment exposure.

“It may be noted that any existing registered SIP/STP received in the above designed schemes after the cut-off time of March 31, 2022 shall not be accepted and processed; however, in the existing registered SIP/STP system will remain active and will be reactivated in this regard after receiving further communication from the regulators regarding the increase in the limit,” Motilal Oswal MF said in a circular.

The fund house also mentioned that pause on redemption, switch-out systematic withdrawal and transfer is not applicable under the above schemes.

Earlier, the fund house, through separate circulars in January and February, had stopped lump-sum investments and new SIPs and STPs in these three schemes.

Motilal Oswal S&P 500 Index Fund and Motilal Oswal Nasdaq 100 FoF are among the largest foreign funds in India with assets under management value. 2,631 crore and 3,986 crores respectively till 28 February 2022. Motilal Oswal MSCI EAFE Top 100 Select Index Fund is a relatively new scheme with asset value of Rs. 41 crores.

The Securities and Exchange Board of India (SEBI) in January advised mutual funds investing in foreign securities to stop further investments in foreign stocks to avoid breaching industry-wide foreign limits.

According to a SEBI circular dated June 3, 2021, mutual funds can make foreign investments of up to $1 billion per mutual fund, with an aggregate industry limit of $7 billion. The suspension is likely to be temporary and may be revoked once the limit is extended. regulator.

Other mutual fund houses have also stopped new SIPs/STPs and lumpsum investments in their foreign funds.