Mutual Fund: Rules changed for 7 mutual fund schemes, fund house has fixed the investment limit, will be implemented from today..
Edelweiss Mutual Fund, one of the largest fund houses in the country, has imposed limits on investment in its 7 schemes. These schemes invest in global securities and the limitations will be applicable on them from February 27. This mutual fund house had assets worth about Rs 1.43 lakh crore at the end of the December quarter. The fund house said that some of its schemes have reached close to the foreign investment limit.
Edelweiss Mutual Fund is India's 13th largest asset management company (AMC). The fund house has said that it has decided to limit subscriptions through a lump sum, switch-in, systematic investment plans (SIPs), systematic transfer plans (STPs), etc. to Rs 1 lakh per PAN per day, effective from February 27.
The exemption will be available till February 25
According to the fund house, this restriction will be applicable based on the transaction reporting date. In addition, transactions reported before the cutoff time till February 25, 2025, including switch-in plans, will not be considered for this limit restriction. Existing systematic transactions such as SIPs/STPs etc. will remain unaffected.
Ban imposed on these schemes
The schemes on which Edelweiss has imposed a ban include Edelweiss ASEAN Equity Off-shore Fund, Edelweiss Greater China Equity Off-shore Fund, Edelweiss US Technology Equity Fund of Fund, Edelweiss Emerging Markets Opportunities Equity Off-shore Fund, Edelweiss Europe Dynamic Equity Off-shore Fund, Edelweiss US Value Equity Off-shore Fund and Edelweiss MSCI India Domestic & World Healthcare 45 Index Fund. Of these, six funds are entirely focused on foreign securities, while Edelweiss India Domestic & World Healthcare Fund invests in leading companies in India and the United States.
SEBI had issued instructions
The Securities and Exchange Board of India (SEBI) had in February 2022 asked domestic mutual fund companies to stop making further investments in foreign stocks. The aim was to prevent violation of the $7 billion limit set by the Reserve Bank of India for investment in foreign securities and funds. The central bank has also set a limit of $1 billion for individual fund houses and $1 billion for investments in foreign exchange-traded funds (ETFs). However, SEBI later allowed mutual funds to invest in foreign stocks, provided their fund allocation complies with RBI limits.
This fund gave bumper returns.
According to data from Value Research, China equity funds have given an average return of 55.38 percent last year, up to February 21. US-based funds, including the Nasdaq 100, S&P 500, and NYSE Feng, have also given an average return of 26 percent over one year. Funds investing in global equities have gained 17.48 percent. Currently, there are about 70 Indian schemes with assets under management (AUM) of about Rs 65,000 crore that invest in schemes focused on themes such as artificial intelligence, emerging technologies, semiconductors, and electric vehicles in foreign markets.
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