Edelweiss Mutual Fund has set a daily investment limit of Rs 1 lakh per Permanent Account Number (PAN) in seven of its schemes that invest in global securities. This limit applies to lump sum investments, switch-ins, systematic investment plans (SIPs), systematic transfer plans (STPs), and other transactions.
The change comes into effect from February 27, 2025.
Edelweiss Mutual Fund manages an asset base of Rs 1.41 lakh crore and boasts over 2.40 million registered accounts, as of the end of the December 2024 quarter.
Affected Funds
The seven affected mutual funds are:
Edelweiss ASEAN Equity Offshore Fund
Edelweiss Greater China Equity Offshore Fund
Edelweiss US Technology Equity Fund of Funds
Edelweiss Emerging Markets Opportunities Equity Offshore Fund
Edelweiss Europe Dynamic Equity Offshore Fund
Edelweiss US Value Equity Offshore Fund
Edelweiss MSCI India Domestic & World Healthcare 45 Index Fund
Six of these funds focus solely on overseas securities, while the Edelweiss India Domestic & World Healthcare Fund invests in top companies in India and the United States.
Why Edelweiss Imposed The Limit?
The mutual fund house imposed the limit, as these schemes were nearing the head room available for overseas investment limit set by the Reserve Bank of India (RBI) on February 1, 2022.
“This restriction will be applicable based on the transaction reporting date. Further, transactions reported till February 25, 2025 before the cut-off time, including switches, where the switch-in scheme is any of these, will not be considered for such restriction. The existing systematic transactions viz. SIPs/ STPs etc. will remain unaffected,” the fund house said.
In February 2022, the Securities and Exchange Board of India (Sebi) had instructed domestic mutual fund companies to stop further investments in foreign stocks to prevent exceeding RBI’s $7 billion industry-wide cap on investments in overseas securities and funds. The RBI had also set limits of $1 billion for individual fund houses and $1 billion for investments in overseas exchange-traded funds (ETFs).
Later, Sebi allowed mutual funds to resume investments in foreign stocks, provided their fund deployment stayed within the RBI’s prescribed limits.
