Learn Investing

Motilal Oswal Mutual Fund has re-opened lump sum investments in three global schemes.

S&P 500 Index Fund, MSCI EAFE Top 100 Select Index Fund and Nasdaq 100 Fund of Fund are the three funds.

From December 1, the schemes would accept lump sum investments from retail investors. The AMC announced that it will accept a sum of two lakh rupees per Permanent Account Number, in a month in one scheme. Investors can make the investments in lump sum amounts or switch-in applications (meaning investors can transfer funds from one scheme to another without any complications).

For now, restrictions have been imposed on investing through systematic schemes such as SIPs (Systematic Investment Plans) and STPs (Systematic Transfer Plans).

The Securities and Exchange Board of India (Sebi) had earlier this year in February urged mutual funds investing in foreign securities to cease additional investments in foreign equities to avoid breaching industry-wide offshore limitations.

For mutual funds to invest in foreign securities and funds, the regulator has set an overall industry maximum of $7 billion and a specific restriction of $1 billion for investing in international exchange traded funds (ETFs).

The AMC has made it clear that there are no restrictions on any other schemes of the fund. This also means there are no limitations on any redemptions of the scheme’s units or registrations.

S&P 500 Index Fund has assets worth Rs. 2,442 crore. MSCI EAFE Top 100 Select Index Fund manages Rs 32 crores, while Nasdaq 100 Fund of Fund has assets worth Rs. 3,234 crores as on 31^st October 2022.

Download Wealthzi app: Invest in mutual funds, automated portfolio review and tracking