Edelweiss Mutual Fund, one of India’s largest fund houses, has placed restrictions on investments in seven of its schemes that invest in global securities. These limits will be effective from February 27, 2025.
As of the December quarter, Edelweiss Mutual Fund managed assets worth approximately Rs 1.43 lakh crore.
The fund house stated that some of its schemes are close to reaching the foreign investment limit, prompting this decision.
New Investment Limits from February 27
Edelweiss Mutual Fund, India’s 13th largest asset management company (AMC), has announced new investment restrictions.
From February 27, investments in certain schemes through lump sum, switch-ins, systematic investment plans (SIPs),
and systematic transfer plans (STPs) will be limited to Rs 1 lakh per PAN per day.
Exemptions Until February 25
The fund house clarified that restrictions will apply based on the transaction reporting date.
Any transactions recorded before the cutoff time on February 25, 2025, including switch-ins, will not be affected. Additionally, existing SIPs and STPs will continue as usual.
Schemes Affected by the Restrictions
The following seven Edelweiss Mutual Fund schemes will be impacted:
Edelweiss ASEAN Equity Off-shore Fund
Edelweiss Greater China Equity Off-shore Fund
Edelweiss US Technology Equity Fund of Fund
Edelweiss Emerging Markets Opportunities Equity Off-shore Fund
Edelweiss Europe Dynamic Equity Off-shore Fund
Edelweiss US Value Equity Off-shore Fund
Edelweiss MSCI India Domestic & World Healthcare 45 Index Fund
Among these, six funds primarily invest in foreign securities, while the Edelweiss MSCI India Domestic & World Healthcare Fund focuses on leading companies from India and the United States.
SEBI’s Rules on Foreign Investments
In February 2022, the Securities and Exchange Board of India (SEBI) directed mutual fund companies to pause new investments in foreign stocks to avoid exceeding the $7 billion limit set by the Reserve Bank of India (RBI).
RBI also imposed a $1 billion cap per fund house and another $1 billion limit for foreign exchange-traded funds (ETFs).
SEBI later allowed mutual funds to resume foreign investments as long as they stayed within the RBI’s limits.
Strong Returns from Global Funds
According to Value Research, China equity funds have delivered 55.38% returns over the past year (as of February 21, 2025).
Meanwhile, US-based funds—including those tracking Nasdaq 100, S&P 500, and NYSE Feng—have seen 26% returns in one year. Funds investing in global equities have gained 17.48% in the same period.
Currently, around 70 Indian mutual fund schemes manage Rs 65,000 crore in global investments.
These funds focus on artificial intelligence, emerging technologies, semiconductors, and electric vehicles.
