Mirae Asset Mutual Fund Resumes Subscription in its Overseas Fund of Funds

Jun 22, 2022

As advised by SEBI pursuant to email dated January 28, 2022 and AMFI Clarification dated January 30, 2022, a few overseas mutual fund schemes of several fund houses were temporarily suspended in order to avoid breach of industry-wide overseas limits as allowed by RBI and in terms of SEBI Circular no. SEBI/HO/IMD/IMD-II/DOF3/P/CIR/2021/571 June 03, 2021.

Mutual fund investors were informed that pursuant to SEBI communication dated January 28, 2022 and in line with Mirae Asset Mutual Fund’s notice dated January 31, 2022; the Lumpsum subscription, Fresh Systematic Registrations, Switch-ins in certain overseas schemes of Mirae Asset Mutual Fund (MAMF) were temporarily suspended with effect from February 02, 2022.

SEBI vide letter SEBI/HO/OW/IMD-II/DOF3/P/25095/2022 dated June 17, 2022 has now permitted all the AMCs to resume subscription and make investments in overseas funds / securities up to the headroom available without breaching the overseas investment limit as of February 01, 2022.

In this regard, Mirae Asset Mutual Fund has decided to allow transactions in the below mentioned schemes with effect from June 27, 2022 in the following manner:

Sr. No. Scheme Name Particulars of transaction
1. Mirae Asset NYSE FANG+ ETF Fund of Fund Lumpsum transaction of maximum of Rs 2,00,000/- per day, per investor (at Primary holder PAN level), per scheme received before the cut-off time on any business day.
2. Mirae Asset S&P 500 Top 50 ETF Fund of Fund
3. Mirae Asset Hang Seng TECH ETF Fund of Fund

 

In the above-mentioned FOF schemes, the existing registered Systematic Investment Plans (SIPs)/Systematic Transfer Plans (STPs) which had been temporarily suspended shall continue to remain suspended. Further, no fresh SIP / STP registrations/switch-ins will be allowed in the aforementioned schemes.

Also, any direct applications received for creation of units of overseas Exchange Traded Funds (ETFs) of MAMF will continue to remain suspended. However, ETF units will continue to trade on the stock exchanges i.e. (NSE and BSE).

The AMC at its discretion reserves the right to suspend subscriptions in aforementioned schemes in accordance with the provisions mentioned in the Scheme Information Document (SID) of the respective schemes. The aforesaid suspension is not applicable to redemption/switch-out applications received by MAMF.

The capital market regulator SEBI allowing mutual funds (MFs), with a rider, to resume fresh subscriptions for international funds and invest in foreign securities amid sharp market correction across the world opens up a potential opportunity for Indian investors.