PPFAS Flexicap Fund, which stopped accepting inflows from February 2, has decided to accept fresh inflows from March 15.
PPFAS Flexicap Fund, formerly Parag Parikh Long Term Equity Fund, is an open-ended dynamic equity scheme investing across large cap, mid cap, small cap stocks and top overseas stocks.
The Securities and Exchange Board of India had directed mutual fund houses to stop taking fresh subscriptions in schemes investing in overseas stocks after the Indian mutual fund industry crossed the mandated limit of $7 billion for overseas investments.
In a letter, Rajeev Thakkar, CIO & Director, PPFAS Mutual Fund, said at this time there is no change in the overseas investment limit.
"Because of this, fresh net inflows will have to be invested in India. Given this situation, it is expected that over time, the weightage of foreign stocks in Parag Parikh Flexi Cap Fund will come down. As and when overseas investment limits are increased, we will rebalance the portfolio as per the then prevailing situation and valuations," he added.
Confusion to investors
Also, various investors have registered their SIPs through different platforms where the back-end for each differs. This has caused confusion among investors and partners regarding the status of their investments in Parag Parikh Flexi Cap Fund, Thakkar said.
“As of now, investors who wish to have a higher weightage to foreign stocks will have to use the individual limits under the Liberalised Remittance Scheme of the RBI to invest in overseas stocks/mutual funds,” he added.
"Post SEBI’s directions on stopping fresh investments abroad, the Union Budget has been announced on February 1, 2022, by the honourable Finance Minister and we have had the RBI governor’s address on February 10, 2022, post the Monetary Policy committee meeting. There has not been any mention of the overseas investment limits in both of these important policy announcements," Thakkar said.