Everything you need to know about restrictions on new investments in international mutual funds and ETFs

akashtripathi · February 2, 2022, 6:14am

[Ticket #20220201346837]- Zerodha Helpdesk

KunalSatao · February 2, 2022, 6:40am

@Bhuvan Any update on this? I don’t see any AMC SIP created for my account nor can I create one myself now

KunalSatao · February 2, 2022, 6:59am

@Bhuvan and team, we understand last minute changes and appreciate you guys working over weekend to help us continue with SIP. But now that some of us have missed the deadline (weekly SIP for PPFAS), can you suggest best option for us, apart from waiting for SEBI to extend limit? Is there a way we can convert our existing folio into AMC SIP manually or by some other means?

manokrrish · February 2, 2022, 7:13am

hi Team,

I am aware of this just now when I digged into details of my missing fund of PPFAS. I am surprised to find Zerodha failing to communicate this to independent customer emails/sms. I had fortnightly SIP before and now the SIP is completely removed.

Will your team create AMC SIPs for the missing SIPs?
Can I create a monthly AMC SIP on same fund today if you are not going to do it?

jashjacob · February 2, 2022, 7:16am

Did you not receive any communication from PPFAS?

manokrrish · February 2, 2022, 7:33am

I am seeing Zerodha’s email at 11:35am Feb 1, 2022 asking me to create monthly SIP before 1PM on same day. This is ridiculous timeline and this is not better than sending no communication.

jashjacob · February 2, 2022, 10:03am

ZeroIndian · February 3, 2022, 3:27am

Yeah, no, we don’t read emails from fund houses, we just throw them in the spam folder. And now GMail knows, from an expertise born out of long practice, that this is what we want it to do. So those mails go to spam the moment they reach our inboxes. Especially if the subject contains clear spam indicators like “Important”.

/s

jashjacob · February 3, 2022, 10:34am

adeep · February 3, 2022, 11:15am

Hi Zerodha,

Notification by Email was certainly, not the best way to disseminate the info. Everybody knows that these email notifications get filtered to the Spam folder.

You could have sent a periodic notification on their apps/devices.

usertcp · February 3, 2022, 6:34pm

Thanks Zerodha for letting down people who trusted your app.

11:30 AM you send an email with a deadline of 1 PM on a weekday.

Do you expect people to sit around, do no work and keep on checking emails by you?

You could’ve updated a day before. Sent a mobile push notification, an SMS - something more active.

But you chose to cause unnecessary grief to investors who go through your portal to build their future.

This is pathetic.

xilix · February 8, 2022, 5:48am

@Bhuvan any updates on: Axis Growth Opportunities Fund?

Thanks.

MSDGOES · February 9, 2022, 7:43am

From where can I see the NAV details, whether it is changed or not. Because of the fund which was suspended not able to check the details on another platform like money control.

Aoz · February 9, 2022, 8:25am

You can check the historical NAV on the AMFI Official Website here: Net Asset Value of Mutual Funds | Nav History | Mutual Funds in India

TradeB2B · February 9, 2022, 8:28am

Bhuvan:

In the past 5 years, International mutual funds have become popular among retail investors. Up until 2016-17, we really didn’t have many options either, but in the last 2-3 years, we’ve seen several new global funds. But there are restrictions in terms of overseas investments. At an industry level, RBI has set the limit at $7 billion and this includes a $1 billion limit on overseas ETFs. At a fund level, SEBI had set a limit $1 billion for mutual funds and $300 million for overseas ETFs.

Given the popularity of international mutual funds, the mutual fund industry is close to hitting the limits and all international mutual funds and ETFs have imposed various restrictions. The industry and SEBI are working with RBI to enhance the limits, but there’s nothing definitive yet.

@Bhuvan SEBI need to restrict to only individual investor , not the whole mutual fund industry
lets these people will change rules day by day ,7 billion is nothing for 140 crore population country , in my opinion individual investor can invest upto 50 lakhs cap in international mutual fund and ETF this limit they can make now , otherwise i invested lot of mix based international mutual fund , now i cannot average out , this is very bad , in this country there is no slow process , even demonetization lot of regulation are falling on overnight , bad people sitting in high profile position thats the problem

Bhuvan · February 9, 2022, 10:56am

You can see the NAV on the fund page in your portfolio

suresh_kumar2 · February 15, 2022, 4:22am

Hi @Bhuvan

I’m currently investing in 3 International MF and none of them got converted to AMC SIP and all SIP’s on those funds stopped.

Edelweiss Greater China Equity Offshore Fund,
ICICI Prudential US Bluechip Equity Fund and
Motilal Oswal S&P 500 Index Fund

suresh_kumar2 · February 17, 2022, 1:11pm

Hi @Bhuvan and Team,
My bad, I missed the mail which I got regarding the said notification and forgot to convert to AMC SIP.

It’s unfortunate that we can’t invest in those Funds going forward.
Please consider this as a feedback, Please send a push notification in mobile , if coin/kite app installed or a SMS for this kind of critical info.

Some of the notices, I used to see in the kite/coin web portal before. Not sure, why this is left out.

Since I get lot of mails from zerodha related to trading, statements, etc… It’s very easy to lose track.

ashok_ramanathan · February 26, 2022, 6:20am

If we have missed the deadline to create monthly SIPs, is there any alternative option for us to continue investing in these funds as we already had existing SIPs.

jashjacob · February 26, 2022, 7:51am

No, there is no option as of now. We will have to wait for the limit to be increased.