PGIM India Mutual Fund allows fresh SIPs in international schemes from July 3; check details

PGIM India Mutual Fund allows fresh SIPs in international schemes from July 3; check the details

According to a report by CNBC-TV18, PGIM Mutual Fund (MF) has announced that investors can now make investments in its international schemes through systematic investment plans (SIP) and systematic transfer plans (STP), in addition to lumpsum investments. This move provides investors with more flexibility in their investment approach.

The international schemes included in this new offering are the PGIM India Global Equity Opportunities Fund, PGIM India Emerging Markets Equity Fund, and PGIM India Global Select Real Estate Securities Fund of Fund. These funds expose investors to global equity opportunities, emerging markets equity, and real estate securities.

By allowing investments through SIP and STP, PGIM MF aims to cater to investors who prefer a systematic and disciplined approach to investing. SIP allows investors to invest a fixed amount regularly at predefined intervals, while STP enables investors to transfer a fixed amount systematically from one scheme to another.

Expanding the investment options to include international schemes reflects PGIM MF’s strategy to provide a diverse range of investment opportunities to its investors. By accessing global markets, investors can benefit from the growth and opportunities available in international economies.

It’s important for investors to carefully assess their investment goals, risk appetite, and investment horizon before making investment decisions. They should also consider consulting with financial advisors or professionals to understand the potential risks and rewards associated with investing in international schemes.

Overall, PGIM MF’s decision to allow investments in its international schemes through SIP and STP provides investors with more avenues to diversify their portfolios and participate in global investment opportunities.

In February 2022, PGIM Mutual Fund suspended investments in its international schemes due to regulatory guidelines from the Securities and Exchange Board of India (SEBI). The directive was issued to all mutual funds in order to prevent breaches of the industry-wide overseas investment limits.

SEBI’s advisory came as the mutual fund industry had surpassed the prescribed limit of $7 billion for investments in foreign stocks. To ensure compliance with regulations and prevent any violations, mutual funds were instructed to halt further investments in overseas securities.

By temporarily stopping investments in international schemes, PGIM Mutual Fund and other fund houses aimed to align with SEBI’s guidelines and maintain regulatory compliance. This decision was made in the best interest of investors and to adhere to the regulations set forth by the regulatory authority.

However, the recent announcement by PGIM Mutual Fund allowing investments in its international schemes through SIP, STP, and lumpsum investments indicates that the industry-wide overseas investment limits may have been revised or relaxed. This move provides investors with renewed access to international investment opportunities through PGIM Mutual Fund’s schemes.

It’s worth noting that regulatory guidelines and investment limits are subject to change as per the evolving market conditions and regulatory framework. Investors should stay updated with the latest announcements and consult with financial advisors or professionals to understand any limitations or restrictions associated with investments in foreign securities.

Overall, the decision to resume investments in international schemes by PGIM Mutual Fund indicates that the regulatory environment may have evolved, allowing mutual funds to navigate within revised overseas investment limits while ensuring compliance with regulatory requirements.

According to a SEBI circular released on June 3, 2021, a mutual fund in India can make up to $1 billion in overseas investments. The overall industry limit for such investments is set at $7 billion.

In a subsequent development, SEBI allowed fund houses to accept investments in their schemes that invest overseas, as long as it did not breach the existing overseas investment limits. This means that if a fund were to sell its existing securities, the proceeds from those sales could be reinvested in buying fresh shares or additional shares of existing holdings without exceeding the prescribed limits.

This change in regulation provided an opportunity for mutual funds, including PGIM Mutual Fund, to accept fresh investments in their schemes that invest in international securities. By utilizing the headroom available within the investment limits, fund houses could accommodate new investments without breaching the overall cap.

As a result of this relaxation, PGIM Mutual Fund and other fund houses were able to resume accepting investments in their international schemes. This allowed investors to participate in these schemes and take advantage of the potential benefits offered by overseas investments.

Investors need to stay informed about the latest regulatory developments and guidelines regarding overseas investments. By doing so, they can make informed decisions and understand any limitations or restrictions associated with investing in international securities through mutual funds.

Please note that the specific investment limits and regulations may be subject to change based on regulatory updates and market conditions. Therefore, it is advisable to consult with financial advisors or professionals for the most up-to-date and accurate information regarding investing in mutual fund schemes that include overseas investments.

In June 2022, PGIM Mutual Fund allowed lumpsum investments of up to ₹2 lahks per day per PAN (Permanent Account Number) basis in the mentioned schemes. At that time, the fund house also permitted investments through existing systematic investment plans (SIPs) and systematic transfer plans (STPs), but did not allow fresh registrations for SIPs and STPs.

However, according to the latest report, PGIM Mutual Fund has now lifted the restriction on new SIP and STP registrations in the mentioned schemes. This means investors can now start new SIPs and STPs in these schemes, allowing them to invest regularly over a period of time or transfer funds systematically from one system to another.

Furthermore, the fund house has removed the cap of ₹2 lakh for lumpsum investments, allowing investors to invest any amount they prefer in a single transaction.
It’s important to note that existing SIPs and STPs will continue without any disruption. Investors who have already registered for SIPs and STPs can continue their investments as per their chosen frequency and amount.

Additionally, there are no restrictions on redemptions, switch-in, and switch-out of these schemes. Investors have the flexibility to redeem their investments or switch their funds between different schemes as per their investment objectives and requirements.

These changes in the investment options and limits offered by PGIM Mutual Fund aim to provide investors with increased flexibility and convenience in investing in the mentioned schemes. It is advisable for investors to review the specific terms and conditions, as well as any associated charges or fees, before making any investment decisions.