Description

Invesco Mutual Fund temporarily suspends fresh subscriptions, lumpsum purchases, switch-ins and new SIP/STP/IDCW registrations for three overseas fund of funds schemes effective October 9, 2025 to avoid breaching overseas investment limits.

Summary

Invesco Asset Management (India) Pvt. Ltd. has temporarily suspended fresh subscriptions through lumpsum purchases, switch-ins, and new registrations for SIP/STP/IDCW Transfer Plans in three overseas fund of funds schemes effective from close of business hours on October 9, 2025. This action is taken to avoid potential breach of overseas investment limits as per SEBI’s February 1, 2022 guidelines that permit AMCs to invest in overseas securities only up to available headroom without breaching limits.

Key Points

  • Temporary suspension applies to three schemes: Invesco India - Invesco Global Equity Income Fund of Fund, Invesco India - Invesco Pan European Equity Fund of Fund, and Invesco India - Invesco Global Consumer Trends Fund of Fund
  • Suspension covers: lumpsum purchases, switch-ins, and fresh SIP/STP/IDCW Transfer Plan registrations
  • Existing SIP/STP/IDCW installments registered as on October 9, 2025 will continue to be processed
  • Switch-outs, redemptions, switches between plans/options, and SWP registrations remain unaffected
  • STP and IDCW Transfer Plan restrictions apply only where designated schemes are target schemes
  • Measure is temporary and will continue until SEBI/RBI enhances overseas investment limits or headroom increases

Regulatory Changes

SEBI vide letter dated June 17, 2022 permitted AMCs to make investments in overseas funds/securities up to the headroom available without breaching overseas investment limits as of February 1, 2022 at the Fund level. This circular implements temporary controls to comply with these existing regulatory limits.

Compliance Requirements

  • Invesco Mutual Fund must maintain overseas investment exposure within SEBI-prescribed limits
  • AMC must monitor headroom availability for overseas investments
  • Notice cum addendum forms integral part of Scheme Information Documents (SIDs) and Key Information Memorandums (KIMs)
  • All other terms and conditions of SIDs and KIMs remain unchanged

Important Dates

  • October 9, 2025: Effective date of temporary suspension (close of business hours)
  • October 9, 2025: Cut-off date for existing SIP/STP/IDCW registrations that will continue processing
  • June 17, 2022: Date of original SEBI letter permitting overseas investments within headroom limits
  • February 1, 2022: Reference date for overseas investment limit calculation

Impact Assessment

Investor Impact: New investors cannot make fresh investments in the three designated overseas fund of funds schemes through lumpsum or new SIP routes. However, existing investors with registered SIPs can continue their systematic investments. Redemption and switching flexibility remains fully available.

Market Impact: Limited impact as suspension affects only three specific fund of funds schemes with overseas exposure. The measure is precautionary to ensure regulatory compliance rather than indicating fund performance issues.

Operational Impact: Invesco AMC maintains compliance with overseas investment limits. Suspension will be lifted once SEBI/RBI enhances limits or natural redemptions create additional headroom. This reflects prudent fund management and regulatory adherence.

Impact Justification

Affects investor access to three specific Invesco fund of funds schemes with overseas exposure. Existing SIPs and redemptions continue normally. Temporary measure pending regulatory limit increase.