The restrictions stem from regulatory limits on overseas investments available to the mutual fund industry. While Indian investors have sought exposure to global markets, most fund houses have been unable to accept fresh inflows after exhausting their available overseas investment headroom.
Why are international funds closed?
The mutual fund industry operates under a $7-billion overseas investment limit for foreign equities. In addition, individual asset management companies (AMCs) are subject to a separate overseas investment cap.
As these limits were largely exhausted in recent years, many fund houses suspended fresh subscriptions in their international schemes to avoid breaching regulatory thresholds. While existing investors have generally been allowed to continue their SIPs, fresh registrations and lump-sum investments remain restricted across most funds.
According to Value Research, the closures are linked to capacity constraints rather than fund performance.
Which funds are still open for fresh SIPs?
The following international mutual fund schemes are currently accepting fresh SIP registrations:
- Franklin US Opportunities Equity Active FoF
- Franklin Asian Equity Fund
- Baroda BNP Paribas Aqua FoF
- Edelweiss US Technology Equity FoF
- Edelweiss Europe Dynamic Equity Offshore Fund
- Edelweiss US Value Equity Offshore Fund
- Edelweiss Emerging Markets Opportunities Equity Offshore Fund
- Edelweiss ASEAN Equity Offshore Fund
- Edelweiss Greater China Equity Offshore Fund
- PGIM India Global Equity Opportunities FoF
- PGIM India Emerging Markets Equity FoF
- PGIM India Global Select Real Estate Securities FoF
Of these, only three schemes currently accept fresh lump-sum investments in addition to SIPs — Franklin US Opportunities Equity Active FoF, Franklin Asian Equity Fund and Baroda BNP Paribas Aqua FoF, according to Value Research.
Why investors look at international funds
International mutual funds offer exposure to overseas markets, sectors and companies that may not be adequately represented in India. Financial planners often recommend some international allocation as a diversification tool, helping investors spread risk across geographies and currencies.
Global funds have also benefited from strong performances in select overseas markets over the past year, particularly in technology-focused and emerging-market segments.
First Published: Jun 5, 2026 12:42 PM IST