PGIM India has reopened investment opportunities in its international fund-of-funds schemes, giving investors another chance to invest in global markets.
This decision comes when the Indian mutual fund industry is getting close to the SEBI-set overall foreign investment limit of $7 billion.
Subscriptions to the following schemes have restarted from May 18 after being temporarily stopped:
PGIM India Global Equity Opportunities Fund of Fund
PGIM India Emerging Markets Equity Fund of Fund
PGIM India Global Select Real Estate Securities Fund of Fund
These funds allow Indian investors to gain exposure to overseas markets and global assets.
Impact of SEBI’s Investment Limit
PGIM India Asset Management is following SEBI rules by allowing daily investments, SIPs (Systematic Investment Plans), and STPs (Systematic Transfer Plans) up to ₹2 lakh per investor per scheme.
SEBI allows mutual funds to invest in foreign securities only within industry-wide limits. The main overseas investment limit is $7 billion, while there is a separate $1 billion limit for foreign ETFs.
This limit has existed since 2008 to control foreign exchange outflows and help stabilize the rupee.
Reports suggest that by early 2026, only 28 international mutual funds and 6 ETFs that were close to this limit were still accepting fresh investments.
Other Mutual Fund Companies Are Restricting Investments
PGIM India’s decision is different from many other large fund houses that have already restricted or stopped overseas investments.
Invesco Mutual Fund temporarily stopped new investments and SIPs in three overseas funds from May 11, 2026.
Axis Mutual Fund suspended new subscriptions to its international schemes from May 13, 2026.
Franklin Templeton Mutual Fund imposed limits from May 18, 2026, allowing lumpsum investments only up to ₹5 lakh and SIP/STP investments up to ₹50,000 per PAN per month.
Kotak Mahindra Mutual Fund and Nippon India Mutual Fund have also either capped inflows or suspended subscriptions in international funds.
These restrictions show that the entire mutual fund industry is facing challenges in providing international investment opportunities due to SEBI’s limits.
Performance of PGIM India’s International Funds
PGIM India Global Equity Opportunities Fund of Fund
This fund had assets under management (AUM) of ₹1,694 crore as of April 2026.
Its returns were:
1-year return: 13.53%
3-year CAGR: 19.11%
5-year return: 9.82%
However, its 5-year performance was lower than the category average.
PGIM India Emerging Markets Equity Fund of Fund
This fund had an AUM of around ₹1,390 crore.
Its performance included:
1-year return: 20.81%
3-year return: 11.15%
5-year return: 1.82%
Its 5-year return was the weakest in its category.
PGIM India Global Select Real Estate Securities Fund of Fund
This fund had an AUM of about ₹61 crore.
Since its launch in December 2021, it delivered:
1-year return: 10.41%
3-year return: 5.84%
Although these funds provide exposure to international markets, their long-term performance has been mixed when compared with benchmarks and competitors.
Concerns for Investors
One major concern for investors is the uncertain and unstable access to overseas investments.
PGIM India reopening subscriptions while many competitors remain closed suggests that the company may still have some available room under SEBI’s $7 billion limit, possibly through internal adjustments. However, this may only be temporary.
The industry-wide limit has become a major regulatory challenge. If investor demand suddenly rises or redemptions change significantly, fund houses may quickly stop fresh investments again.
International investments also involve:
Currency risk
Global economic uncertainty
Geopolitical risks
Higher market volatility
These risks become even more important when investment access is limited and unpredictable.
Future of Overseas Investments
The future availability of these PGIM India overseas funds will depend on how much of SEBI’s $7 billion overseas investment limit is used by the mutual fund industry.
Investors who want international diversification should carefully monitor announcements from AMCs and regulatory updates.
The current situation shows that overseas mutual fund investing from India may remain limited and volatile, making a cautious and well-informed investment approach important.
