Description

Invesco Mutual Fund temporarily suspends fresh subscriptions, switch-ins, and new SIP/STP/IDCW registrations for three international fund of funds schemes 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 measure is taken to prevent potential breach of overseas investment limits as per SEBI’s February 1, 2022 guidelines. Existing SIP/STP/IDCW installments, redemptions, and switch-outs will continue to be processed normally.

Key Points

  • Three Invesco fund of funds schemes affected: Global Equity Income FoF, Pan European Equity FoF, and Global Consumer Trends FoF
  • Suspension applies to: lumpsum purchases, switch-ins, and fresh registrations for SIP/STP/IDCW Transfer Plans
  • Existing SIP/STP/IDCW installments registered as of January 2, 2026 will continue to be processed
  • Switch-outs, redemptions, switch between plans/options, and SWP registrations remain unaffected
  • Suspension is temporary until further notice
  • Measure taken to comply with SEBI’s overseas investment limit framework dated June 17, 2022

Regulatory Changes

This action is based on SEBI’s letter dated June 17, 2022, which 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. The suspension is a proactive measure to ensure compliance with these regulatory limits.

Compliance Requirements

  • Invesco Asset Management (India) Pvt. Ltd. must ensure overseas investment limits are not breached
  • The notice-cum-addendum forms an integral part of the Scheme Information Documents (SIDs) and Key Information Memorandums (KIMs) of the affected schemes
  • All other terms and conditions of SIDs and KIMs remain unchanged

Important Dates

  • January 2, 2026: Effective date of suspension (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 calculation
  • To be announced: Date when fresh subscriptions will resume

Impact Assessment

Investor Impact: Investors looking to make fresh investments in the three affected international fund of funds schemes will be unable to do so through lumpsum, switch-ins, or new SIP/STP/IDCW registrations. However, existing systematic investment plans will continue uninterrupted, and investors retain full flexibility for redemptions and switches.

Market Impact: Limited impact as the suspension affects only three specific fund of funds schemes focused on international markets. The measure is precautionary and temporary in nature.

Operational Impact: Invesco Mutual Fund’s operational processes for the affected schemes will need to reject new subscription requests while continuing to process existing commitments and redemptions normally. The suspension will continue until overseas investment headroom becomes available or regulatory limits are revised.

Impact Justification

Affects investors in three specific international fund of funds schemes offered by Invesco Mutual Fund. Suspension is temporary and does not impact redemptions or existing SIPs. Limited to overseas investment limit management.