Nippon India Mutual Fund Temporarily Suspends Investments in Overseas Scheme
The house of Nippon India Mutual Fund has declared a temporary suspension on new investments to its international schemes on 18th October 2024. All the investment options of the mentioned decision are lump sum investments, switch-ins and fresh registrations under SIP and STP.
Schemes impacted in the said decision are as follows:
1. Nippon India US Equity Opportunities Fund
2. Nippon India Japan Equity Fund
3. Nippon India Taiwan Equity Fund
4. Nippon India ETF Hang Seng BeES
All SIPs and STPs for the existing active schemes will be allowed to continue uninterrupted during the period of suspension. All intra-scheme switchings between plans as well as options are not suspended.
This move is also aligned with the stipulations issued by the Securities and Exchange Board of India, which limits the total amount Indian mutual funds can invest overseas. According to the guidelines issued by SEBI, Indian mutual funds cannot invest overseas beyond a total limit of $7 billion, while the amount per fund house may increase to $1 billion.
A couple of days back, the Nippon India Mutual Fund reopened its international fund subscriptions for one day on October 15, 2024, before closing them again only after a day to respect the regulatory limits set by SEBI.
Apart from suspension, Nippon India Mutual Fund has launched two new funds namely, Nippon India CRISIL – IBX AAA Financial Services – Dec 2026 Index Fund and Nippon India CRISIL – IBX AAA Financial Services – Jan 2028 Index Fund. These NFOs are available until October 21, 2024.
Nippon India Mutual Fund had assets under management of Rs.5.64 lakh crore as of September 2024. Nippon India Mutual Fund invested in about 13.14 lakh shares of HDFC Bank, thereby increasing its weight by 0.2% relative to the previous month.
