Invesco Reopens Three International FoFs With ₹10 Lakh Daily Investment Limit

Key Takeaways:

• Three Invesco international FoFs reopened for fresh investments from September 28. 
• Lumpsum purchases, switch-ins and fresh SIP, STP and IDCW Transfer Plan registrations are once again permitted. 
• A ₹10 lakh daily limit applies per PAN and subscriptions remain subject to available overseas investment headroom. 

Fresh investments have resumed in three overseas fund of funds managed by Invesco Mutual Fund from September 28, although the reopening comes with limits. 

The affected schemes are 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. 

Investors can again make lumpsum purchases and switch money into the schemes. 

New registrations for systematic investment plans, systematic transfer plans and IDCW Transfer Plans have also reopened. 

There is, however, a ₹10 lakh daily ceiling per PAN at the first-holder level. 

The limit is calculated across transactions in the specified schemes and also takes relevant instalments under existing systematic plans into account. If the combined value exceeds the permitted daily amount, transactions can be rejected. 

The schemes had temporarily stopped accepting certain fresh subscriptions earlier in the year. 

Their reopening does not remove the broader constraint facing international mutual funds in India. 

Indian mutual funds continue to operate within regulatory limits for overseas investments. The industry-wide limit for investments in foreign securities has remained at $7 billion, with a separate $1 billion cap for overseas ETFs. 

Invesco has therefore said that transactions will be accepted only while sufficient investment headroom is available at the fund level. The AMC can suspend fresh subscriptions again if investments move close to the applicable limits. 

That makes the September 28 reopening conditional rather than unrestricted. 

International mutual funds have faced intermittent subscription restrictions since overseas investment limits were reached, leaving fund houses to reopen or restrict schemes depending on available capacity. 

For investors in the three Invesco schemes, the immediate change is straightforward: fresh money can enter again, but both the PAN-level ceiling and the fund house's overseas investment capacity will continue to apply.