Top-performing Nippon India Taiwan Equity Fund halts fresh inflows temporarily

Nippon India Taiwan Equity Fund, the best-performing mutual fund of FY26, has temporarily halted fresh subscriptions effective April 21, according to a notice-cum-addendum issued by Nippon India Mutual Fund.

The fund house said that lumpsum investments, switch-ins, and fresh registrations of SIPs/STPs and other special products in the scheme have been temporarily suspended.

The fund house also clarified that the said suspension is not applicable for intra-scheme switches between Plan(s) and Option(s) in the same scheme and existing registered SIP / STP or such other special product transactions. This move came as a result in order to avoid breaching the overseas investment limits at the Mutual Fund level.


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How the fund performed in FY26?

Nippon India Taiwan Equity Fund emerged as the standout performer, earning the title of mutual fund scheme of FY26 with a staggering return of over 171%.

A monthly SIP of Rs 10,000 made at the first day of the financial year or on April 1, 2025, the value of the investment at the end of the FY26 was Rs 2.17 lakh with an XIRR of 182.81%. The lumpsum investment of Rs 1 lakh made on April 1, 2025, was Rs 2.70 lakh with a CAGR of 170.78%.

The assets under management (AUM) of the scheme has surged by 88% in FY26 from Rs 276 crore in April 2025 to Rs 519 crore in February 2026. There were nearly 570 equity funds in the said financial year, of which this fund emerged as the topper.

The primary investment objective of Nippon India Taiwan Equity Fund is to provide long-term capital appreciation to investors by primarily investing in equity and equity-related securities of companies listed on the recognised stock exchanges of Taiwan, and the secondary objective is to generate consistent returns by investing in debt and money market securities of India.

As per the last data available, Nippon India Taiwan Equity Fund had an AUM of Rs 519 crore as on February 28, 2026. Launched in December 2021, the scheme is managed by Kinjal Desai.

The fund house has also halted fresh subscriptions in one other international fund - Nippon India Japan Equity Fund with effect from April 21.

The aforesaid suspension is temporary in nature and shall be reviewed based on any increase in available headroom without breaching overseas investment limits mentioned above or further enhancement of limit by Regulators in this regard.

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The fund house also mentioned that pursuant to SEBI email dated January 28, 2022 read with AMFI communication dated January 30, 2022 in order to avoid breach of industry-wide overseas investment limits as allowed by RBI, lumpsum subscription, switch-ins and fresh registration of SIP/STP or such other special product were temporarily suspended for certain schemes of Nippon India Mutual Fund which invest in overseas securities.

Further, subscription was resumed in the certain overseas funds of Nippon India Mutual Fund upto the headroom available without breaching the overseas investment limits as of EOD of February 1, 2022 at Mutual Fund level with effect from March 18, 2026 via Notice cum Addendum no.102 dated March 17, 2026.

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