Indian investors wanting to start new international SIPs now have only one choice: the Baroda BNP Paribas Aqua Fund of Fund. Most other fund houses have stopped accepting new money because they reached regulatory limits on overseas investments set by the RBI and SEBI.
The options for Indian investors looking to add global exposure through mutual funds have shrunk significantly. As of July 15, 2026, the Baroda BNP Paribas Aqua Fund of Fund is the only scheme still accepting new Systematic Investment Plan (SIP) registrations and lump-sum investments. Other major fund houses, such as PGIM India Mutual Fund, Franklin Templeton Mutual Fund, and Edelweiss Mutual Fund, have paused new inflows into their international offerings.
Understanding the Regulatory Limit
This trend of fund closures is driven by strict regulatory boundaries. The Reserve Bank of India and the Securities and Exchange Board of India have set a collective industry limit of $7 billion for overseas investments by Indian mutual funds. Additionally, individual fund houses have specific quotas they cannot exceed. When a fund house hits its allocated limit for foreign stocks or ETFs, it is forced to stop accepting fresh capital to stay compliant with these directives. Many asset management companies have now fully utilized their available headroom, leading to these suspensions.
What This Means for Investors
For investors, this means the ability to diversify a portfolio into international markets via mutual funds is currently restricted. While these closures stop new money from entering, they do not generally affect existing investments. Investors who already have an active SIP in these funds can usually continue their contributions unless a specific fund house has decided to halt them. It is important for investors to check the latest status for their specific funds on the official websites or through their investment platforms.
Future Outlook
These restrictions are expected to remain in place until one of two things happens: either the regulator increases the total industry investment limit, or existing funds free up capacity through redemptions by other investors. Until then, new entrants looking for international exposure through mutual funds have limited choices. Investors should monitor updates from their respective fund houses regarding any changes to SIP registration policies or announcements from SEBI about potential changes to overseas investment caps.