Overseas Investment Caps Leave Only 12 International Mutual Funds Open for New SIPs

Only 12 international mutual fund schemes are currently open for fresh systematic investment plan (SIP) registrations. Most other schemes remain closed due to regulatory limits on overseas investments available to the mutual fund industry.

The restrictions follow strong investor demand for global exposure in recent years. As a result, fund houses have paused new inflows to remain within prescribed limits.

Regulatory Limits on Overseas Investments

The mutual fund industry operates under a total overseas investment cap of $7 billion for foreign equities. In addition to the industry-wide limit, each asset management company (AMC) is subject to its own overseas allocation ceiling.

These caps have largely been exhausted amid rising investor interest in global markets. Consequently, fund houses have restricted fresh inflows to avoid breaching regulatory thresholds.

Impact On SIP Registrations and Flows

While existing investors are generally allowed to continue their SIPs, fresh registrations have been restricted across most international funds. Lump sum investments have also been limited in several schemes.

This has created a situation where only a small number of funds remain open for new SIP inflows. The constraints highlight operational challenges faced by AMCs in managing inflows within regulatory boundaries.

List Of Funds Accepting Fresh SIPs

According to available data, the following 12 international schemes currently allow fresh SIP registrations:

• Franklin US Opportunities Equity Active FoF
• Franklin Asian Equity Fund
• Baroda BNP Paribas Aqua FoF
• Edelweiss US Technology Equity FoF
• Edelweiss Europe Dynamic Equity Offshore Fund
• Edelweiss US Value Equity Offshore Fund
• Edelweiss Emerging Markets Opportunities Equity Offshore Fund
• Edelweiss ASEAN Equity Offshore Fund
• Edelweiss Greater China Equity Offshore Fund
• PGIM India Global Equity Opportunities FoF
• PGIM India Emerging Markets Equity FoF
• PGIM India Global Select Real Estate Securities FoF

These funds have remaining headroom under regulatory limits, allowing them to continue accepting fresh SIP mandates.

Role Of International Funds in Portfolios

International mutual funds provide exposure to global markets, sectors, and companies not fully represented in India. They enable investors to diversify across geographies and reduce concentration risk in domestic assets.

In recent periods, global equity markets such as technology and emerging markets have delivered strong returns. This performance has contributed to increased demand for international fund offerings.

Read More: Best International Mutual Funds in India for June 2026 Based on 10‑Year CAGR.

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Conclusion

The restriction on fresh SIP registrations across most international mutual fund schemes reflects regulatory constraints on overseas investments. Despite strong investor demand, fund houses have limited inflows to comply with prescribed caps.

Only 12 schemes currently remain open for new SIP registrations, highlighting limited access to global investment opportunities. The situation underscores the influence of regulatory frameworks on fund availability and investor participation in international markets.

Investors looking to explore investment opportunities can open a demat account to invest and trade in the equity market seamlessly.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.