Investment in International Stocks: Now you can reinvest in foreign stocks through mutual funds.
Investment in International Stocks: Now you can reinvest in foreign stocks through mutual funds. Markets regulator SEBI has re-approved mutual funds to invest in foreign stocks. However, the entire industry will be able to invest in foreign shares only up to a maximum of $ 700 million (Rs 55 thousand crore). The market regulator has given this approval at a time when there has been a sharp fall in the value of foreign shares. Edelweiss Mutual Fund has also started accepting investments in international schemes from Tuesday i.e. today.
was banned in January
In early 2022 this year, SEBI had asked mutual fund houses to stop new subscriptions in schemes investing in foreign stocks. SEBI had imposed this ban because the limit of $ 700 million (Rs 55 thousand crore) for foreign investment for the mutual fund industry was being crossed. However, now due to the fall in global stocks, the investment of the industry has remained below this limit, then SEBI has approved again. SEBI has kept a cap of $ 700 million (Rs 55 thousand crore) for the mutual fund industry for investment in foreign stocks, while a cap of $ 100 million (Rs 7800 crore) for investment in foreign ETFs.
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These instructions were given to the mutual fund regulator
SEBI has asked the Association of Mutual Funds in India (AMFI), the regulatory body of the mutual fund sector, to ensure that every mutual fund can invest only up to the foreign investment limit by the end of February 1, 2022. This means that mutual funds can take only as much investment in foreign stocks as on February 1, 2022, the level is not crossed.
These schemes invest money in foreign stocks
- Asian Equity Offshore Fund
- Greater China Equity Off-shore Fund
- US Technology Equity Fund of Fund of Fund
- Emerging Markets Opportunities Equity Offshore Fund
- Europe Dynamic Equity Offshore Fund
- US Value Equity Off-shore Fund
- MSCI India Domestic & World Healthcare 45 Index Fund MSCI India Domestic & World Healthcare 45 Index Fund