Nippon India Mutual Fund, one of the more popular AMCs of India, has decided to suspend investments in its international schemes. These schemes are Nippon India ETF Hang Seng BeES, Nippon India US Equity Opportunities Fund, Nippon India Japan Equity Fund and Nippon India Taiwan Equity Fund.
The AMC has taken this decision apparently to abide by regulations of market regulator Sebi. The regulator as a rule imposes restrictions on investments made in securities listed abroad that Indian mutual funds can make. For mutual funds, this limit is $7 billion. A particular AMC is allowed to invest not more than $1 billion in markets abroad.
Restrictions imposed from Oct 18
According to reports, the restrictions are being imposed on and from October 18. There is a halt to all sorts of new investments such as lump sum, SIP (Systematic Investment Plans) or STPs (Systematic Transfer Plans). Continuing SIPs and STPs will, however, remain unaffected.
Nippon India Mutual Fund authorities have communicated the new decision to the investors. According to reports, Nippon India wrote to its investors, “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.”
Nippon India Mutual Fund is one of the country’s leading AMCs. It was set up in 1995. At the end of FY24, average AUM of Nippon India AMC was more than Rs 4.31 lakh crore while its total folio numbers stood at more than 2.43 crore.
2 NFOs from Nippon India
In another development Nippon India Mutual Fund has launched 2 two mutual fund schemes. Both are index funds. These are called Nippon India CRISIL – IBX AAA Financial Services – Dec 2026 Index Fund and Nippon India CRISIL – IBX AAA Financial Services – Jan 2028 Index Fund. The NFO for both the schemes opened on October 15 and will remain open till October 21.
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