Motilal Oswal stopped SIP in 3 schemes, you have not invested

Other mutual fund houses have also stopped new SIPs/STPs and lump sum investments in their foreign funds.

Mutual funds cannot make foreign investments more than $1 billion.

There is big news for those investing in Mutual Funds. Motilal Oswal Asset Management Co. Ltd. (Motilal Oswal Asset Management Co. Ltd) has stopped Systematic Investment Plan (SIP) in three international schemes. The fund house said, with effect from April 1, 2022, in S&P 500 Index Fund, MSCI EAFE Top 100 Select Index Fund and Nasdaq 100 Fund of Fund SI (SIP) and Systematic Transfer Plan (STP) have been put on hold.

The asset management company has taken the decision due to the industry-wise limit on overseas investment exposure. The fund house said, from April 1, this decision will not be applicable on redemption, switch out, systematic withdrawal and transfer of these three schemes.

After March 31, you will not be able to do SIP in these schemes

Motilal Oswal MF said in a circular, any existing registered SIP/STP received in the above designed schemes after the cut-off time of March 31, 2022 will not be accepted and processed. However, the existing registered SIP/STP will remain active in the system and will be re-activated after further information about the increase in the limit by the regulators in this regard.

Motilal Oswal S&P 500 Index Fund and Motilal Oswal Nasdaq 100 FoF (Motilal Oswal S&P 500 Index Fund) are one of the largest foreign funds in India. As of February 28, 2022, they had assets under management of Rs 2,631 crore and Rs 3,986 crore respectively. Motilal Oswal MSCI EAFE Top 100 Select Index Fund is a relatively new scheme with assets of Rs 41 crores.

Cannot invest more than 1 billion dollars

The Securities and Exchange Board of India (Sebi) in January had advised mutual funds investing in overseas securities to stop further investments in foreign stocks to avoid infringing on industry-based foreign limits.

According to a SEBI circular dated June 3, 2021, mutual funds can make foreign investments up to $1 billion each, with an aggregate limit of $7 billion. However, this limit can be temporarily suspended and can be revoked after the regulator raises the limit.

Other mutual fund houses have also stopped new SIPs/STPs and lump sum investments in their foreign funds.

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