DSP Mutual Fund temporarily suspends fresh inflows in international funds
The fund house has stopped accepting lumpsum investments, as well as new registrations for Systematic Investment Plans (SIPs) and Systematic Transfer Plans (STPs), in the following funds:
- DSP Global Innovation Fund of Fund
- DSP Global Allocation Fund of Fund
- DSP Global Clean Energy Fund of Fund
- DSP World Agriculture Fund
- DSP US Flexible Equity Fund of Fund
- DSP World Gold Fund of Fund
- DSP World Mining Fund
However, existing SIPs and STPs in these funds will continue as usual.
This move by DSP Mutual Fund is a precautionary measure to ensure it does not exceed the regulatory limits set for mutual fund investments in overseas markets.
The limits, defined by the Securities and Exchange Board of India (SEBI), restrict the overall industry’s exposure to overseas securities at $7 billion and to overseas Exchange Traded Funds (ETFs) at $1 billion.
In January 2022, SEBI, in coordination with the Association of Mutual Funds in India (AMFI), directed asset management companies (AMCs) to temporarily restrict subscriptions in funds investing in overseas securities once their industry-wide limit was close to being breached.
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