Description

Edelweiss Mutual Fund discontinues new lump sum investments and switch-ins for 7 offshore/international schemes effective October 16, 2025, with new SIP/STP capped at INR 5,000 per PAN per day due to overseas investment headroom nearing threshold.

Summary

Edelweiss Mutual Fund has announced restrictions on subscriptions for 7 international/offshore equity schemes effective October 16, 2025, due to the AMC’s available headroom for overseas investment nearing its threshold under SEBI’s mutual fund level limit set on February 1, 2022. New lump sum investments and switch-ins will be discontinued completely. New systematic transactions (SIP/STP) will be capped at maximum INR 5,000 per PAN per day. Existing systematic transactions remain unaffected.

Key Points

  • New lump sum investments and switch-ins discontinued for 7 specified schemes from October 16, 2025
  • New monthly SIP and STP capped at maximum INR 5,000 per PAN per day
  • Restriction based on transaction reporting date
  • Transactions reported till October 15, 2025 before cut-off time not subject to restrictions
  • Existing SIPs/STPs remain unaffected
  • Change necessitated by overseas investment headroom nearing threshold per SEBI limits
  • Applies to schemes investing in ASEAN, China, US, Europe, and emerging markets

Regulatory Changes

This action follows SEBI letter no. SEBI/HO/OW/IMD-II/DOF3/25095/2022 dated June 17, 2022, which clarified that mutual funds can resume subscriptions and investments in overseas funds/securities up to headroom available without breaching overseas investment limits as of February 1, 2022 at mutual fund level. The current restrictions are implemented as the AMC approaches this regulatory threshold.

Compliance Requirements

  • Investors cannot make new lump sum investments in the 7 affected schemes from October 16, 2025
  • Switch-in transactions to these schemes are discontinued
  • New SIP/STP registrations limited to INR 5,000 per PAN per day
  • SID/KIM of designated schemes will be updated with these changes
  • Notice-cum-addendum forms integral part of SID/KIM/SAI

Important Dates

  • October 16, 2025: Effective date for subscription restrictions
  • October 15, 2025: Last date for unrestricted transactions (before cut-off time)
  • August 13, 2025: Previous notice cum addendum issued regarding subscription limits
  • October 13, 2025: Date of current notice

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

Impact Assessment

Investor Impact: High - Investors seeking to make significant new investments in these international equity schemes will be unable to do so via lump sum mode. New systematic investment capability severely curtailed to INR 5,000 per day per PAN. Existing investors with running SIPs/STPs are protected.

Market Impact: Medium - Reflects broader industry challenge with overseas investment limits affecting multiple AMCs. May drive investors to seek alternative international exposure through unrestricted funds or other AMCs with available headroom.

Operational Impact: Schemes’ AUM growth from new subscriptions will be significantly constrained until overseas investment headroom becomes available through redemptions or regulatory limit increases.

Impact Justification

Significant operational change affecting 7 mutual fund schemes with immediate effect, restricting new investments due to regulatory overseas investment limits, directly impacting investor accessibility