Invesco and Aditya Birla Sun Life MF Pause New Investments in Select Overseas Schemes

Two major mutual fund houses, Invesco Mutual Fund and Aditya Birla Sun Life Mutual Fund, have announced a temporary suspension on fresh investments in specific international feeder schemes. The decision comes as both fund houses approach the regulatory limit for overseas investments set by the Securities and Exchange Board of India (SEBI).

Temporary Suspension of Overseas Schemes

Invesco Mutual Fund has paused new subscriptions in three of its international feeder funds from 9 October. The schemes affected include the Invesco India – Invesco Global Equity Income Fund of Fund, the Invesco India – Invesco Pan European Equity Fund of Fund, and the Invesco India – Invesco Global Consumer Trends Fund of Fund. The move restricts only fresh inflows, while redemptions and existing Systematic Investment Plans (SIPs) remain unaffected.

Aditya Birla Sun Life Mutual Fund has also announced a similar suspension in its Aditya Birla Sun Life International Equity Fund from October 7, 2025. In addition, the fund house has revised the minimum investment amount for existing investors, although the revised figures have not been disclosed.

Regulatory Investment Limit Trigger

Both fund houses have attributed the suspension to nearing the overseas investment ceiling outlined by SEBI. Under the current framework, mutual funds are permitted to invest a limited portion of their assets in international securities. Once this limit is approached, fund houses are required to temporarily halt fresh inflows to ensure compliance.

The industry witnessed a similar situation in early 2022 when several fund houses, including large players, paused overseas schemes due to the same regulatory cap. These restrictions were later relaxed, allowing a gradual reopening of global investment opportunities.

Impact on Investors

The suspension affects only new investments and does not restrict existing investors from continuing their SIPs or making withdrawals. Fund houses have assured that ongoing investments will continue as per the original mandate, and there will be no immediate change in portfolio holdings.

Investors currently exposed to these schemes may choose to monitor fund performance and await further communication from the fund houses regarding any potential reopening or policy updates.

Read more: India's mutual fund folios rose to 25.19 crore in September 2025

Broader Context in Mutual Fund Industry

The recent pause reflects the growing investor interest in global markets through Indian mutual funds. As international equities continue to play a role in diversification strategies, regulatory compliance ensures stability and risk management within the sector.

This development marks another phase in the evolving landscape of international mutual fund investing in India, highlighting the balance between investor appetite for global exposure and regulatory oversight.

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