Description

Edelweiss Mutual Fund discontinues new lump sum investments and switch-ins, caps new SIPs/STPs at Rs 5,000 per PAN per day for 7 offshore schemes effective October 16, 2025 due to overseas investment limit nearing threshold.

Summary

Edelweiss Asset Management Limited has announced restrictions on subscriptions for 7 offshore and international equity schemes effective October 16, 2025. The AMC’s available headroom for overseas investment under the mutual fund level limit set on February 1, 2022 is nearing its threshold. New lump sum investments and switch-ins will be discontinued. New systematic transactions (SIPs and STPs) will be capped at maximum Rs 5,000 per PAN per day. Existing systematic transactions remain unaffected.

Key Points

  • Discontinuation of new lump sum investments in 7 designated offshore schemes
  • Discontinuation of switch-ins to these schemes
  • New monthly SIP and STP transactions capped at Rs 5,000 per PAN per day
  • Restrictions based on transaction reporting date
  • Transactions reported till October 15, 2025 before cut-off time not subject to restrictions
  • Existing SIPs/STPs remain unaffected and will continue as scheduled
  • Restriction due to AMC’s overseas investment headroom nearing threshold per SEBI limits set on February 1, 2022

Affected Schemes

  1. Edelweiss ASEAN Equity Off-shore Fund
  2. Edelweiss Greater China Equity Off-shore Fund
  3. Edelweiss US Technology Equity Fund of Fund
  4. Edelweiss Emerging Markets Opportunities Equity Offshore Fund
  5. Edelweiss Europe Dynamic Equity Offshore Fund
  6. Edelweiss US Value Equity Off-shore Fund
  7. Edelweiss MSCI India Domestic & World Healthcare 45 Index Fund

Regulatory Context

  • SEBI letter no. SEBI/HO/OW/IMD-II/DOF3/25095/2022 dated June 17, 2022 set limits on overseas investments by mutual funds
  • Mutual funds can make overseas investments only up to headroom available without breaching limits as of February 1, 2022 at mutual fund level
  • Previous notice cum addendum dated August 13, 2025 had informed investors about subscription limits

Compliance Requirements

  • Investors cannot make new lump sum investments in the 7 designated schemes from October 16, 2025
  • Investors cannot execute switch-ins to these schemes from the effective date
  • New SIP/STP registrations limited to Rs 5,000 per PAN per day
  • SID/KIM of designated schemes will be amended to reflect these changes
  • This notice-cum-addendum forms integral part of SID/KIM/SAI and overrides conflicting provisions

Important Dates

  • October 13, 2025: Notice issued by Edelweiss AMC
  • October 15, 2025: Last date for unrestricted transactions (before cut-off time)
  • October 16, 2025: Effective date of subscription restrictions

Impact Assessment

Investor Impact: High - Investors seeking to invest in these offshore schemes face significant restrictions. New investors cannot make lump sum investments and are limited to Rs 5,000 per day through SIPs/STPs. Switch-ins from other schemes also blocked.

Market Impact: Medium - Affects flow of funds to international markets through these 7 schemes. Reflects broader industry challenge of overseas investment limits constraining fund house operations.

Operational Impact: Existing systematic investments continue unaffected, providing some stability for current investors. However, new investors have severely limited access to these international/offshore equity opportunities through Edelweiss platform.

Impact Justification

Significant restriction on investor access to 7 Edelweiss offshore schemes due to regulatory overseas investment limits; affects new investments and systematic plans immediately