Effective October 18, 2024, Nippon India Mutual Fund has decided to temporarily suspend new investments in its international schemes. This suspension applies to all investment avenues, including lump sum investments, switch-ins, and new registrations for Systematic Investment Plans (SIP) or Systematic Transfer Plans (STP).
The impacted schemes include:
Nippon India US Equity Opportunities Fund
Nippon India Japan Equity Fund
Nippon India Taiwan Equity Fund
Nippon India ETF Hang Seng BeES
While existing SIPs and STPs will continue to be processed without interruption, intra-scheme switches between plans and options remain unaffected during this period.
The decision by the fund house was made in compliance with SEBI’s regulations, which restrict the total overseas investments for Indian mutual funds. The regulatory limit is set at $7 billion for mutual funds, with individual fund houses permitted to invest up to $1 billion each in foreign markets.
Nippon India MF briefly reopened international fund subscriptions on October 15, 2024, but subsequently paused them again to adhere to SEBI’s prescribed limits.
In a separate update, Nippon India MF has introduced two new schemes: Nippon India CRISIL – IBX AAA Financial Services – Dec 2026 Index Fund and Nippon India CRISIL – IBX AAA Financial Services – Jan 2028 Index Fund.
The new fund offer (NFO) for these schemes is open until October 21st.
As of September, Nippon India Mutual Fund had an AUM of Rs 5.64 lakh crore. Here are the top 10 stock holdings of the fund house, as reported by Motilal Oswal Financial Services.
In September, the fund house’s largest holding was in HDFC Bank, with approximately 5.4% of their portfolio allocated to this stock. They added around 13.14 lakh shares of HDFC Bank, increasing its weight by 0.2% compared to the previous month. Additionally, the fund house had a 3.9% allocation in NTPC in September, which was a decrease of 0.1% in weight from the previous month.
In September, the fund house had a 3.7% allocation in ICICI Bank, with approximately 5.48 lakh shares sold. The allocation in RIL was 2.7%, representing a decrease of 0.1% compared to the previous month. In addition, the fund house held 2.5% allocations each in Infosys and Power Grid in September. The weight of Infosys saw a decrease of 0.1%, while the weight of Power Grid remained unchanged from the previous month.