Only 2 international funds currently open to fresh investments, 1 to new SIPs: Here’s why
Investors looking to gain exposure to overseas markets through international mutual funds have limited options, with most schemes continuing to restrict fresh inflows.
According to an analysis by Value Research, only two of the 60 international mutual fund schemes tracked are accepting fresh lump-sum investments. Of these, only one is also allowing new systematic investment plan (SIP) registrations.
Baroda BNP Paribas Aqua Fund accepts both lump-sum investments and new SIPs, while PGIM India Global Select Real Estate Securities Fund allows fresh lump-sum investments but has stopped accepting new SIP registrations.
The restrictions have tightened further following a November 3 notice by Invesco Mutual Fund. With effect from November 4, three of its international schemes have stopped accepting lump-sum investments, new SIP registrations and instalments under existing SIPs.
Which international mutual funds are accepting investments?
The investment status of the schemes highlighted in Value Research’s analysis is as follows:
| Mutual fund scheme | Fresh lump sum | New SIP | Existing SIP instalments |
|---|---|---|---|
| Baroda BNP Paribas Aqua Fund | Accepted | Accepted | Continue |
| PGIM India Global Select Real Estate Securities Fund | Accepted | Not accepted | Continue |
| Invesco India Global Equity Income Fund | Not accepted | Not accepted | Paused |
| Invesco India Pan European Equity Fund | Not accepted | Not accepted | Paused |
| Invesco India Global Consumer Trends Fund | Not accepted | Not accepted | Paused |
What is the status of other international funds?
Of the 60 international schemes tracked by Value Research, 58 are not accepting fresh lump-sum investments or new SIP registrations.
However, the restrictions on existing SIPs vary. In 31 schemes, instalments under previously registered SIPs continue despite the suspension of fresh investments. The remaining 27 schemes are not accepting any money, including instalments under existing SIPs.
The three Invesco schemes have moved into the latter category following the November 4 restrictions.
What should investors understand?
A restriction on fresh investments does not necessarily mean that existing SIPs have also been discontinued. Some international funds continue to process instalments under SIPs registered before the restrictions came into effect.
Investors should therefore check whether a scheme has stopped only new registrations or has also suspended existing SIP instalments. The distinction is important when assessing ongoing investments and planning fresh exposure to overseas markets.
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NOTE TO READERS
Disclaimer: This article is for informational purposes only and should not be construed as investment advice. Readers should consult certified experts before making any investment decisions.
