PPFAS Mutual Fund stops fresh inflows in flexi cap fund

PPFAS Mutual Fund has stopped accepting inflows into PPFAS Flexicap Fund with effect from 2 February 2022. This moves comes after the Securities and Exchange Board of India directed mutual fund houses to stop taking fresh subscriptions in schemes investing in overseas stocks. The notice was sent by Sebi after the Indian mutual fund industry crossed the mandated limit of $7 billion for overseas investments.

“Investors are hereby informed that, as advised by SEBI pursuant to email dated January 28, 2022 and AMFI Clarification dated January 30, 2022, in order to avoid breach of industry-wide overseas limits as allowed by RBI and in terms of SEBI Circular dated June 03, 2021, PPFAS Asset Management Private Limited and PPFAS Trustee Company Private Limited, the Trustees to PPFAS Mutual Fund has decided to temporarily suspend the transactions as mentioned below under the Scheme, Parag Parikh Flexi Cap Fund (Designated Scheme) with effect from February 02, 2022,” PPFAS MF said in a notice to investors.

Transactions in the PPFAS Flexi Cap Fund, received post the cut off timing of February 01, 2022 shall not be accepted and processed. The fund house clarified that lumpsum subscription in the scheme, fresh Systematic Registration (including systematic transfer plan into the designated scheme) shall not be accepted effective February 2, 2022. However, existing SIPs / STPs instalments will continue.

PPFAS Flexicap Fund invests up to 35% of its corpus in foreign stocks, primarily stocks of US technology companies. Eralier, other fund houses such as Motilal Oswal Mutual Fund have also stopped lump sums into their schemes investing outside India. In a circular dated January 13, Motilal Oswal AMC announced the suspension of lump -sum investments and switch in (from other funds) into Motilal Oswal Nasdaq 100 Fund of Fund, Motilal Oswal S&P 500 Index fund and Motilal Oswal MSCI EAFE Top 100 Index fund. The asset management company (AMC) said it has taken action after it neared the market regulator’s overall $1 billion investment limit in foreign stocks.

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