Description

Edelweiss Mutual Fund reduces subscription limit to INR 1 lakh per PAN per day for seven offshore schemes effective August 19, 2025 due to overseas investment headroom constraints.

Summary

Edelweiss Mutual Fund announces reduction in subscription limits for seven offshore schemes to INR 1 lakh per PAN per day effective August 19, 2025. This restriction applies to new subscriptions, switches, SIPs, and STPs due to the AMC’s available overseas investment headroom nearing threshold limits set by SEBI.

Key Points

  • Subscription limit reduced to INR 1 lakh per PAN per day for seven designated offshore schemes
  • Restriction applies to lumpsum investments, switch-ins, SIPs, and STPs
  • Based on transaction reporting date, effective August 19, 2025
  • Existing systematic transactions (SIPs/STPs) remain unaffected
  • Transactions reported till August 18, 2025 before cut-off time will not be subject to limits

Regulatory Changes

Implementation follows SEBI letter no. SEBI/HO/OW/IMD-II/DOF3/25095/2022 dated June 17, 2022 regarding overseas investment limits. AMC’s available headroom for overseas investment as per February 1, 2022 mutual fund level limit is nearing threshold.

Compliance Requirements

  • Investors must adhere to INR 1 lakh per PAN per day limit for affected schemes
  • Restriction applies to all new subscription types including switches where switch-in scheme is among the seven designated funds
  • SID/KIM of designated schemes will be updated to reflect these changes

Important Dates

  • August 19, 2025: Subscription limit restrictions take effect
  • August 18, 2025: Cut-off date for transactions not subject to new limits
  • August 13, 2025: Notice date

Impact Assessment

Medium impact on investors seeking exposure to international markets through Edelweiss offshore schemes. Seven affected schemes include ASEAN Equity, Greater China Equity, US Technology Equity, Emerging Markets Opportunities, Europe Dynamic Equity, US Value Equity, and MSCI India Domestic & World Healthcare Index Fund. Existing SIP investors remain unaffected, limiting disruption to regular investment plans.

Impact Justification

Affects investor subscription limits for specific mutual fund schemes but limited to Edelweiss offshore funds