The Parag Parikh Flexicap Fund will reopen for new investments from March 15; says no visibility on easing in overseas limit
(By: Khushboo Tiwari)
Mumbai: After almost five weeks of closure for investors,
The fund had stopped taking new investments from January 30 as mutual funds in India hit
As there have been no changes in investment limits by regulators, the fund house will only affect new inflows in the Indian market. With this movement, the weighting of foreign equities in the fund will decrease. The program has the ability to invest up to 35% in foreign markets.
Rajeev Thakkar, CIO and Director of PPFAS, said: “As overseas investment limits are increased, we will rebalance the portfolio based on the then-prevailing situation and valuations.”
According to the fund’s February factsheet, it had a 29.83% exposure to foreign securities with the highest exposure to Alphabet at 9.04% followed by 7.93% in
“At this time, we have no visibility on if/when and by how much the overseas investment limit will be revised. If and when the limits are increased, and if they are of a relatively small amount, they will soon be depleted. In such a scenario, having funds readily available will be advantageous rather than opening the scheme after the limit is increased to see the industry-wide cap being breached again,” added Thakkar.
For individual investors wishing to gain exposure in overseas markets, RBI has set a limit of $2,50,000 for each financial year under the liberalized rebate scheme.