International MFs Frozen: Is Your Global SIP Safe?

Almost all international mutual funds in India have stopped accepting new SIPs because they've hit SEBI and RBI limits on how much money can be invested overseas. Only one fund remains open right now, leaving investors with very few options for global diversification.

Here's what happened: SEBI and RBI cap total overseas investments by Indian mutual funds at $7 billion industry-wide, a limit hit in early 2022 that triggered mass suspensions.. Most fund houses — including popular international funds from Mirae, Motilal Oswal, and others — have paused fresh SIPs and lump-sum investments indefinitely.. Only one fund of fund focused on global water and infrastructure themes currently remains open for fresh SIP registrations as of mid-2025..

What you should do: Check if your existing international fund SIP is still running — log into your MF app and verify SIP status, as some funds auto-paused without clear notification.. Explore domestic alternatives for global exposure: Nifty 50 Index Funds or ETFs tracking domestic multinationals like Infosys and TCS give partial international revenue exposure.. If global diversification is a priority, consider GIFT City-based funds or RBI's Liberalised Remittance Scheme (LRS) to invest directly abroad up to $250,000 per year..

Your existing international fund SIPs that were active before the freeze are grandfathered — they continue running. Only new registrations are blocked. Don't cancel an old SIP thinking the fund is shut.