Description

Invesco Mutual Fund temporarily suspends fresh subscriptions, switch-ins, and new SIP/STP/IDCW registrations for three international fund of funds schemes effective January 2, 2026 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 international fund of funds schemes effective from close of business hours on January 2, 2026. This action is taken to prevent potential breach of overseas investment limits as per SEBI guidelines issued on June 17, 2022, which restrict AMCs from exceeding overseas investment limits beyond the headroom available as of February 1, 2022.

Key Points

  • 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
  • Fresh lumpsum purchases and switch-ins to these schemes are suspended
  • New SIP, STP, and IDCW Transfer Plan registrations are suspended (restriction on STP/IDCW applies only when designated scheme is target scheme)
  • Existing SIP, STP, and IDCW Transfer Plan installments registered as on January 2, 2026 will continue to be processed
  • Switch-outs, redemptions, switches between plans/options, and SWP registrations/processing remain unaffected
  • Suspension is temporary and will continue until further notice

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 with these SEBI requirements.

Compliance Requirements

  • Invesco Asset Management must ensure no new subscriptions breach the overseas investment limits prescribed by SEBI
  • Existing investors with registered SIPs/STPs/IDCW plans as of January 2, 2026 can continue their installments
  • Distributors and investors must be informed that fresh investments in the three designated schemes are not permitted until the suspension is lifted
  • This notice-cum-addendum forms an integral part of the Scheme Information Documents (SIDs) and Key Information Memorandums (KIMs) of the designated schemes

Important Dates

  • January 2, 2026: Effective date for suspension of fresh subscriptions (close of business hours)
  • January 2, 2026: Cut-off date for existing SIP/STP/IDCW registrations that will continue to be processed
  • June 17, 2022: Date of SEBI letter permitting investments within prescribed overseas limits
  • February 1, 2022: Reference date for overseas investment limit headroom calculations
  • Until Further Notice: Duration of suspension pending resumption announcement

Impact Assessment

Investor Impact: Investors seeking to make fresh investments in the three international fund of funds schemes will be unable to do so until the suspension is lifted. However, existing investors with ongoing SIPs/STPs will not be affected, providing continuity for systematic investment strategies already in place.

Market Impact: Limited market impact as suspension affects only three specific fund of funds schemes focused on overseas investments. The measure is precautionary to ensure regulatory compliance rather than indicating fund distress.

Operational Impact: AMC must monitor overseas investment headroom and communicate resumption of subscriptions once limits permit. Distributors and platforms need to update systems to block fresh subscriptions while allowing existing installments to continue processing.

Impact Justification

Affects investors in three specific Invesco fund of funds schemes but does not impact existing SIP/STP installments or redemptions. Temporary measure to comply with SEBI overseas investment limits.