Mutual Fund Update: Options for doing new SIP in International Mutual Funds are almost over, only 1 scheme left out of 65, know what is the big reason – ..

By Samira Vishwas On Jul 19, 2026

New Delhi/Lucknow. If you are planning to start a new SIP or lump sum investment in an International Mutual Fund to strengthen your portfolio globally, then there is a very important and shocking news for you. Now the options for foreign investment in the Indian mutual fund market have almost completely ended. Due to regulatory limits, most of the asset management companies (AMCs) of the country have imposed strict restrictions on the entry of new investors in their international funds and new SIP registrations. According to the latest data of Value Research, out of the total 65 international mutual fund schemes running in the country, now only 1 scheme It is the only one left which is accepting new investments.

Why are international funds closing? Know the technical reason behind this

According to market experts, this ban on new investments in international funds is not due to poor performance of these schemes or any market recession. The regulatory limits set by SEBI and RBI are entirely responsible for this. In fact, a maximum aggregate limit for investing in foreign securities is already set for the Indian mutual fund industry. Due to the recent boom in global markets, many big fund houses have utilized 100% of their available foreign investment limit. Recently, 11 more leading international mutual fund schemes have completely stopped new SIP registrations due to the limit being reached.

This is the only fund of ‘Baroda BNP Paribas’ open in the market.

At present, in the entire mutual fund industry, only Baroda BNP Paribas Aqua Fund of Funds (FoF) It is the only international mutual fund left, where new investors can invest their new SIP or lumpsum capital. However, financial experts have warned that this situation is also not going to last for long. As soon as the foreign investment limit of this fund house is reached, this last scheme may also be closed forever for new investors.

What will be the impact on existing investors? Will the old SIP be closed?

The relief amid this new restriction is that investors whose SIPs are already running actively in these international funds do not need to panic or worry at all:

Old SIP will remain active: Most asset management companies have clarified that already registered and ongoing SIPs will continue to operate as normal and installments will continue to be deducted from your bank account.
No impact on fund value: There will be no negative impact of this ban on investments already made and they will, as usual, fluctuate according to the fluctuations and performance of the global markets.
However, the internal rules of different fund houses may vary slightly, so investors should keep an eye on their folios and emails or latest updates from the AMC.

What are the options now for investors seeking global diversification?

Financial planners say that investors who want global diversification in their portfolio, i.e. exposure to American or European markets, can consider the only option currently open, ‘Baroda BNP Paribas Aqua FOF’. Apart from this, the other option is that investors wait until the regulatory bodies (RBI/SEBI) issue an official notification to increase this limit of foreign investment. Experts believe that as soon as the limit is increased in future, all these 65 funds will be opened again for new investments. Till then, investors must evaluate their financial goals, investment time horizon and risk appetite before investing in any foreign asset.