Birla MF may float fund to invest abroad

CHENNAI: The relaxation of restrictions on mutual funds (MFs) investing in debt and equity abroad has made the segment more attractive, a senior executive of Birla Sun Life Asset Management has said. However, the MF itself is still discussing various options internally.

A Balasubramanian, chief investment officer, Birla Sun Life MF, said the mutual fund could leverage on Sun Life resources for investing abroad. Following the changes in norms, the company is looking at floating a fund. “We are still studying the options. But it won’t happen in the near future,” he said. He was in Chennai on Thursday to launch Birla Long-term Advantage Fund.

Earlier, MFs looking at investing abroad could buy into only those companies that have 10% share holding in listed Indian firms. There was also a $1-bn cap on overseas investments by MFs. In a recent notification, the RBI raised the investment ceiling to $2bn — and dispensed with the 10% holding requirement.

While only two funds, Principal Global Opportunities and Templeton India Equity Income, have a mandate to invest abroad, there could be more funds in future. Mr Balasubramanian said that a fund that could invest abroad essentially increased range of investment options for Indian investors.