NewsInvesco and Aditya Birla Sun Life Mutual Funds Pause New Investments in Select International SchemesInvesco and Aditya Birla Sun Life Mutual Funds Pause New Investments in Select International Schemes
Invesco Mutual Fund and Aditya Birla Sun Life Mutual Fund have suspended fresh subscriptions in certain international feeder schemes due to reaching regulatory investment limits. Invesco halted new investments in three overseas funds from October 9, while Aditya Birla Sun Life suspended inflows into its International Equity Fund from October 7. The suspensions only affect new subscriptions and do not impact existing investors' SIPs or redemption facilities. This action is typical when fund houses approach SEBI-prescribed overseas investment limits.
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Invesco Mutual Fund and Aditya Birla Sun Life Mutual Fund have recently announced the suspension of fresh subscriptions in certain international feeder schemes. This decision comes as a result of reaching regulatory investment limits on overseas funds.
Invesco's Suspension Details
Invesco has halted new investments in three of its overseas funds starting October 9:
- Global Equity Income Fund
- Pan European Equity Fund
- Global Consumer Trends Fund of Funds
Aditya Birla Sun Life's Actions
Aditya Birla Sun Life has taken similar steps:
- Suspended fresh inflows into its International Equity Fund from October 7
- Revised minimum application amounts for existing investors
Impact on Investors
It's important to note that these suspensions:
- Only affect new subscriptions
- Do not impact existing investors' Systematic Investment Plans (SIPs)
- Do not affect redemption facilities
Industry Context
According to industry experts, such halts typically occur when fund houses approach the overseas investment limits prescribed by the Securities and Exchange Board of India (SEBI). This is not an isolated incident, as similar industry-wide pauses occurred in early 2022 when several international schemes reached their allocation caps.
Implications for Investors
| Aspect | Impact |
|---|---|
| New Investments | Temporarily suspended in affected schemes |
| Existing SIPs | Continue as usual |
| Redemptions | Remain unaffected |
| Minimum Application | Revised for existing investors (Aditya Birla Sun Life) |
Investors should stay informed about these changes and consult with their financial advisors to understand how these suspensions might affect their investment strategies, especially if they were planning to invest in these international schemes.
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