Only 1 international mutual fund remains open for fresh SIPs and lumpsum investments

Starting a new SIP in an international mutual fund has become increasingly difficult, with only one scheme currently accepting fresh registrations. Baroda BNP Paribas Aqua FoF remains the only international MF open to new SIPs after 11 other schemes suspended fresh SIP registrations last week.

Among the 12 international MFs that were earlier accepting SIPs, only Baroda BNP Paribas Aqua FoF continues to allow fresh registrations. The remaining 11 schemes have stopped accepting new SIPs, although existing SIPs registered before the restrictions will continue as per their original mandates.

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Last week, PGIM India Mutual Fund suspended fresh subscriptions in three international FoFs from July 9. On the same day, Franklin Templeton stopped accepting fresh SIP registrations in two overseas schemes. Edelweiss Mutual Fund followed suit, halting fresh SIPs and STPs in six international funds from the close of business on July 10.

These restrictions stem from SEBI’s overseas investment limits for mutual funds. Most international mutual funds in India invest in overseas stocks either directly or through feeder funds. Since these schemes are subject to regulatory caps on overseas investments, fund houses have had to restrict fresh subscriptions once the available headroom is exhausted.

In February 2022, the regulator asked fund houses to stop accepting fresh investments in international schemes after the industry-wide overseas investment limit was exhausted. Since then, most fund houses have either suspended lumpsum investments, SIPs, or both in their international mutual fund schemes.

Edelweiss Mutual Fund informed investors that the AMC’s available headroom for overseas investments, as per the mutual fund-level limit set on February 1, 2022, was nearing its threshold. PGIM India Mutual Fund and Franklin Templeton Mutual Fund also cited similar reasons for restricting SIPs and lumpsum investments in their respective international funds.

While new investors have limited options, existing investors in schemes where SIPs were registered before the restrictions can continue their investments unless the respective asset management company (AMC) announces any changes.

The availability of just one international fund for fresh SIPs and lumpsum investments highlights the limited avenues currently available for investors seeking global diversification through mutual funds. Until regulators revise overseas investment limits or additional headroom becomes available, access to international mutual funds is likely to remain restricted.

Baroda BNP Paribas Aqua FoF invests in an open-ended fund-of-fund scheme that invests in BNP Paribas Funds Aqua (Lux). The primary investment objective of the scheme is to seek capital appreciation by investing predominantly in units of BNP Paribas Funds Aqua (Lux).

On May 19, 2026, Baroda BNP Paribas Mutual Fund, through a notice-cum-addendum, announced certain changes to Baroda BNP Paribas Aqua Fund of Fund, effective July 20.

The fund house said the existing limit of Rs 5 lakh per day per investor (at the primary holder PAN level) for lumpsum investments, including switch-ins, in the scheme had been withdrawn.

Investors can now make investments without any such daily monetary ceiling, subject to the overall overseas investment limits available at the AMC level.

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The fund house further said that the earlier restriction on fresh registrations of SIPs and STPs in the scheme has also been removed. It added that all fresh subscriptions, including lumpsum investments, SIPs, STPs, switch-ins, or any other mode of investment, will be accepted strictly within the overall overseas investment limits available to the AMC.

Investments will be undertaken only to the extent of available headroom, without breaching the

Accordingly, the actual capacity for new investments will be restricted to the difference between the overseas investment levels as of February 1, 2022, and the current reduced exposure.

Additionally, fresh subscriptions may be moderated in line with internal risk management practices, including a cap linked to a percentage of the average AUM invested in overseas securities/ETFs over the immediately preceding three calendar months, subject to the maximum limit as of February 1, 2022, the fund house said.

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