Whalesbook
Expanded Restrictions Grip International Funds
Axis Mutual Fund has implemented a stringent halt on all fresh transactions, including lump sum subscriptions and switch-ins, for its Axis Global Equity Alpha Fund of Fund, Axis Global Innovation Fund of Fund, and Axis Greater China Equity Fund of Fund. The order, effective after 3:00 PM on May 13, extends beyond initial limitations.
SIPs Also Paused
Crucially, the latest addendum reveals that previously registered systematic transactions, such as SIPs and STPs, are also suspended. This marks a significant shift from the earlier announcement on May 5, which had allowed existing SIPs to continue uninterrupted. Any SIP installments deducted after the effective date will be subject to refunds within standard timelines. The fund house clarified that redemptions and switch-outs remain unaffected, allowing investors to exit affected schemes.
Regulatory Overhang Persists
The clampdown by Axis Mutual Fund reflects ongoing industry-wide challenges with mandated overseas investment limits set by the Reserve Bank of India. For the past two years, numerous asset management companies have had to restrict or halt inflows into their international funds as they approach these ceilings, forcing a recalibration of global investment strategies for many Indian investors.