DSP Mutual Fund stops fresh inflow in six schemes

DSP Mutual Fund on Tuesday said it has stopped accepting inflows into its six schemes with international mandates from Wednesday.

The six schemes are — DSP US Flexible Equity Fund, DSP Global Allocation Fund, DSP World Gold Fund, DSP World Mining Fund, DSP World Agriculture Fund and DSP World Energy Fund.

The move comes after markets regulator Sebi directed mutual fund houses to stop taking fresh subscriptions in schemes investing in overseas stocks.

The directive to stop subscription is mainly on account of the mutual fund industry crossing the mandated limit of USD 7 billion for overseas investments.

“In view of the impending breach of the industry-wide overseas investment limit of USD 7 billion as currently permitted by RBI, Sebi has directed all asset management companies to stop accepting fresh inflows in schemes, which have the mandate to invest in overseas securities without the optionality to invest in Indian securities,” the fund house said in a statement.

Accordingly, temporarily, all purchase, switch-in, new SIP/ STP/ DTP registration requests in the six schemes of DSP Mutual Fund will not be accepted effective February 2, 2022, (post-cut-off on February 1, 2022), it added.

The fund house further said that existing systematic investments (SIPs/ STPs) in these funds registered as on February 1, 2022, will continue till further notice.

On Sunday, PPFAS Mutual Fund said it will stop accepting inflows into PPFAS Flexicap Fund with effect from February 2.

PPFAS Flexicap Fund invests up to 35 per cent of its corpus in foreign stocks, mainly stocks of US technology companies.

In June 2021, Sebi enhanced the overseas investment limit for a mutual fund house to USD 1 billion from the existing USD 600 million. The overall mutual fund industry limit was capped at USD 7 billion.

Mutual funds can make overseas investments subject to a maximum of USD 1 billion per mutual fund, within the overall industry limit of USD 7 billion,” Sebi had said.

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