28 international funds stop existing SIPs amid overseas investment limits; Edelweiss' Radhika Gupta says ‘no choice’
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- 28 international mutual fund schemes have stopped accepting existing SIP instalments, per Value Research data reported on 7 August.
- PGIM India halted SIPs in 3 international schemes from 8 August, while Edelweiss will stop SIPs in 6 schemes from 12 August.
- Invesco, Motilal Oswal, Axis, Kotak, HDFC and Mirae Asset are among fund houses that had already paused existing SIPs in 19 other international schemes before the latest round.
- Baroda BNP Paribas Aqua FoF is the only international fund still accepting fresh SIP registrations; roughly 40 international schemes continue to run existing SIPs.
- Edelweiss MF CEO Radhika Gupta said the fund house had "no choice" because of RBI limits, clarifying SIPs are paused—not cancelled—and may resume if the headroom is opened up.
- RBI caps collective overseas mutual fund investments at ~$7 billion (unchanged since early 2022), with each AMC also limited to ~$1 billion, meaning a single fund house can exhaust its quota even when industry-level room remains.
- Existing investments are not withdrawn—units stay invested and investors can hold, redeem or switch; the restriction applies only to future SIP instalments.
Why it matters: Indian investors with running SIPs in 28 international schemes now see future contributions frozen as the $7 billion industry cap—frozen since early 2022—starves fund houses of overseas deployment room; access to new global SIPs is now confined to Baroda BNP Paribas Aqua FoF alone.
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