Description

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

Summary

Invesco Mutual Fund 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 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. Existing SIP/STP/IDCW installments registered on or before October 9, 2025 will continue to be processed.

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 registrations for SIP/STP/IDCW Transfer Plans
  • Existing SIP/STP/IDCW installments already registered as on October 9, 2025 will continue to be processed
  • Switch-outs, redemptions, switch between plans/options, and SWP registrations remain unaffected
  • Measure implemented to comply with SEBI’s June 17, 2022 directive on overseas investment limits

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 the overseas investment limits as of February 1, 2022 at the Fund level. This circular implements compliance measures to adhere to those limits.

Compliance Requirements

  • Invesco Asset Management (India) Pvt. Ltd. must maintain overseas investments within prescribed limits
  • No fresh subscriptions accepted for the three designated schemes through lumpsum, switch-ins, or new SIP/STP/IDCW registrations
  • AMC must monitor headroom availability for overseas investments
  • All other terms and conditions of Scheme Information Documents (SIDs) and Key Information Memorandums (KIMs) remain unchanged

Important Dates

  • October 9, 2025: Effective date for suspension of fresh subscriptions (close of business hours)
  • June 17, 2022: Date of SEBI letter permitting overseas investments within specified limits
  • February 1, 2022: Reference date for overseas investment limit calculations
  • Duration: Suspension continues until SEBI/RBI enhances limits or headroom increases without breaching limits

Impact Assessment

Market Impact: Limited to investors seeking new exposure to three specific overseas fund-of-funds schemes offered by Invesco Mutual Fund. Existing investors can continue their systematic investment plans.

Investor Impact: New investors cannot enter these schemes through lumpsum or systematic routes. However, existing investors retain full flexibility with their investments including redemptions, switches, and continuation of existing SIPs.

Operational Impact: Reflects broader industry challenge of managing overseas investment limits prescribed by regulators. Similar suspensions may occur across other AMCs managing overseas-focused schemes if they approach their limit thresholds.

Duration: Temporary measure with resumption dependent on regulatory action by SEBI/RBI to enhance overseas investment limits or natural headroom creation through market movements.

Impact Justification

Affects investors in three specific Invesco fund-of-funds schemes with overseas exposure. Existing SIP/STP installments continue. Temporary measure pending limit enhancement by SEBI/RBI.