In February 2022, asset management companies (AMCs) investing in overseas securities were advised by the regulator to stop subscriptions to avoid the breach of industry-wide overseas investment limits of $7 billion.
Following which, lump sum subscription, fresh systematic registrations, and switch-ins in certain schemes of Mirae Asset Mutual Fund were suspended effective 2 February, 2022.
However, in June this year, the Securities and Exchange Board of India (Sebi) allowed mutual funds to resume subscriptions for international funds and invest in foreign securities but with a condition. The total amount of foreign investment by the fund house shall remain capped at the amount of investment made as of 1 February 2022. It implies that any limit available due to redemptions available after February can be used by the AMCs for fresh inflows.
Hence, Mirae Asset AMC has allowed lump sum transactions up to a ₹2,00,000 per day, per investor, per scheme in overseas fund of funds.
The AMC has now decided to allow existing systematic investment plans (SIPs), systematic transfer plans (STPs) and lump sum transactions, as well, without any limits.
As a result, the schemes - Mirae Asset NYSE FANG+ ETF Fund of Fund, Mirae Asset S&P 500 Top 50 ETF Fund of Fund and Mirae Asset Hang Seng TECH ETF Fund of Fund – will now accept lump sum and switch in transactions with no upper limit on amount.
Existing registered SIPs/STPs will also be allowed. However, fresh SIP / STP registrations will not be allowed.
The AMC also mentioned that direct applications received in creation unit size as mentioned in the scheme information document (SID) will be allowed for Mirae Asset NYSE FANG+ ETF, Mirae Asset S&P 500 Top 50 ETF and Mirae Asset Hang Seng TECH ETF.
Note that, Mirae MF at its discretion can suspend subscriptions in the said schemes when the limits are breached. However, one can continue to trade the units of ETFs on the stock exchanges - NSE and BSE.
