Motilal Oswal Asset Management to accept fresh subscriptions in international funds

The five international schemes which will resume subscriptions are -- Motilal Oswal S&P 500 Index Fund, Motilal Oswal NASDAQ 100 ETF, Motilal Oswal NASDAQ 100 Fund of Fund, Motilal Oswal MSCI EAFE Top 100 Select Index Fund and Motilal Oswal NASDAQ Q 50 ETF.

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Motilal Oswal Asset Management Ltd on Tuesday announced that it will withdraw temporary suspension of subscriptions in five of its international funds from January 1, 2023.

The asset management company (AMC) will now be accepting fresh subscriptions in these schemes via Lump-sum and Systematic Investment Options without any restrictions, according to a statement.

The five international schemes which will resume subscriptions are -- Motilal Oswal S&P 500 Index Fund, Motilal Oswal NASDAQ 100 ETF, Motilal Oswal NASDAQ 100 Fund of Fund, Motilal Oswal MSCI EAFE Top 100 Select Index Fund and Motilal Oswal NASDAQ Q 50 ETF.

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"In the event of complete exhaustion of the available headroom that is being utilised at present to resume overseas investments, all your subscriptions might be paused again," the asset management firm said.

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In June, Amfi (Association of Mutual Funds in India) announced that mutual fund schemes may resume subscriptions and make investments in overseas funds or securities up to the headroom available without breaching the overseas investment limits utilised by funds as of February 1, 2022.

AMCs can utilise the headroom available in the overseas investment limit created due to redemptions and consequent sale of overseas securities post February 1, 2022, it said.

Earlier in January, Sebi had asked mutual fund houses to stop taking fresh subscriptions in schemes investing in overseas stocks. The directive to stop subscription was mainly on account of the mutual fund industry crossing the mandated limit of USD 7 billion for overseas investments.

The Securities and Exchange Board of India (Sebi) has set an overall industry level limit of USD 7 billion for mutual funds to invest in overseas securities and funds and a separate limit of USD 1 billion for investment in overseas ETFs (Exchange Traded Funds).

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